11 February 2026
If you are covering Barratt Redrow’s latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
“Barratt Redrow’s half year results showed good top line growth but little progress on profitability. Completion volumes were up 5% compared to the same period last year, and average sales prices grew similarly. However, despite a solid increase in revenue, adjusted profit measures are largely flat year-on-year, with the company's operating margin reducing around 90 basis points to just 8%. That equates to a top-line beat versus expectations, but a miss on the bottom line of the income statement.
“Guidance for the full year has been reiterated by management, while the forward sale book is marginally larger than the equivalent last year. However, management does note the importance of the Spring selling season, and remark that volatility around the May local elections may be impactful, although we would expect less disruption compared to the period prior to the November budget last year.
“Of greater importance to investors might be the adjusted earnings per share figure, which fell more than 20% year-on-year. This is partly an accounting issue and partly reflects an increase in share count, but combined with the company's revised dividend policy (2.0x cover, changed from 1.75x in September 2025) means a 9% drop in the interim dividend to 5p. Given Barratt Redrow's status as one of the highest distributing housebuilders in the UK, this may come as a disappointment to shareholders, although it may also be seen as bringing the company more into line with peers (Taylor Wimpey now stands out as the highest distributor in the sector).”
