Source: Sharecast
Bellway said completions were up 2.7% at 4,702 homes, while average selling prices rose to £322,180, up from £310,581 in the prior year.
Underlying operating profits grew 1.5% to £159m, though Bellway also noted that operating margins had narrowed from 11% to 10.5%.
As a result, Bellway hiked its interim dividend to 23p per share, up from 21p a year earlier, and said it expects full-year underlying operating profits to come in between £320m and £330m, with volume output now projected to be between 9,300 and 9,500 homes.
Despite market headwinds, Bellway also highlighted that it maintained a "strong balance sheet and financial position", with modest net debt of £72m, and said it was focused on "capital efficiency and shareholder returns".
Chief executive Jason Honeymam said: "While our industry continues to face several headwinds, we have seen an improvement in customer demand and reservations since the start of the new calendar year. At this stage, the situation in the Middle East has not had a material impact on trading and, supported by our forward order book, we are on track to deliver FY26 underlying operating profit within the range of £320m - £330m.
"The ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market. Notwithstanding this, I am confident that our self-help and drive for capital efficiency will help mitigate the impact on our strategy to increase cash generation and shareholder returns."
As of 0820 GMT, Bellway shares were down 5.89% at 2,012p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS on Investegate