Source: Sharecast
Total housing completions rose 10.8% to 9,695, coming in above the company’s previously guided range of 9,300 to 9,500 homes, mainly driven by a strong conversion from its bulk sales pipeline.
The proportion of private completions was 79% of the total, in line with the previous year, and the average selling price rose to around £324,000 from £316,412. This was driven by geographic and mix changes, with no underlying house price inflation, Bellway said.
Adjusted operating cashflow improved to over £850m from £638.9m in 2025, above the group’s previously guided range of £750m to £800m. Bellway ended the year with net cash of £157.7m, versus £41.8m a year earlier, and a low level of adjusted gearing of less than 5%, down from 8.3%.
Housing revenue ticked up 13% to £3.14bn and Bellway said it expects full-year operating profit of around £320m, at the lower end of the guided range of £320m to £330m but up from £303.5m a year earlier. However, the adjusted operating margin is expected to fall to around 10% from 10.9% due to the increased proportion of lower margin bulk sales in the year.
Bellway said the forward order book reduced to 4,206 homes at the end of July, from 5,307 a year earlier.
The housebuilder said customer demand throughout the autumn was hit by uncertainty ahead of the Budget. While there was an improvement in trading in the early part of the spring selling season, customer demand has moderated since April in response to rising mortgage rates.
Chief executive Jason Honeyman said: "Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry. Our sharp focus on operational improvement and drive for capital efficiency has provided resilience and supported a strong increase in cash generation and shareholder returns.
"The board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities. However, with the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most.
"In order to ease affordability constraints and stimulate demand, an immediate reduction in Stamp Duty alongside a Government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."
At 1000 BST, the shares were down 0.4% at 2,092p.
Dan Coatsworth, head of markets at AJ Bell, said: "A resilient full-year performance from housebuilder Bellway was overshadowed by recent trading which suggests future performance may be on shakier foundations.
"The company is doing what it can in the face of difficult market conditions. Strong cash generation is enabling it to bolster its balance sheet while still returning funds to shareholders through buybacks.
"However, the company had to pursue lower margin bulk sales to help deliver on its volume targets and there are clear signs of demand softening in recent months, with the forward order book shrinking substantially.
"Like the rest of the sector, Bellway could do with some relief in the form of lower mortgage rates and easing build cost inflation, but this looks a distant prospect.
"Management may pin their hopes on state-backed initiatives to provide some support with some reports suggesting the Help to Buy scheme might be revived. Bellway and its industry peers will be closely watching October’s Budget for any news on this front."
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