Bellway edges past revenue forecast and announces £150m buyback

what happened

According to Newsmetry API, UK housebuilder Bellway increased full-year revenue by 13.6% to £3.16 billion, narrowly exceeding the £3.13 billion consensus from 18 analysts. Underlying pre-tax profit climbed 5.7% to £305.70 million. The company announced a £150 million share repurchase for FY27, taking total shareholder returns to approximately £450 million.

Bellway is guiding to 9,000-9,400 housing completions in FY27, compared with 9,695 in FY26. It expects the average selling price to remain broadly unchanged from FY26 at about £325,000, while underlying operating margin is set to fall further as profitability comes under pressure.

Higher completions, including more bulk transactions, supported the increase in revenue and earnings. To help affordability amid weak demand, Bellway used targeted sales incentives more extensively, moderating selling prices. Management is also working to improve cost discipline and operating efficiency through procurement savings and greater standardisation.

The average analyst view on the shares is “buy”: 11 recommendations are “strong buy” or “buy”, five are “hold” and one is “sell” or “strong sell”. The comparable homebuilding group also has a “buy” average. Wall Street analysts put the median 12-month target at GBp2,380.00, 19.9% above the October 12 close of GBp1,985.00. Bellway recently traded on 12 times projected earnings for the coming 12 months, versus 11 three months earlier. Reuters’ recommended reading included Whitbread’s October 13 accommodation-led revenue update, Hays’ October 12 report of a 14th consecutive net-fee decline, and Nigel Farage’s pledge on October 12 to suspend asylum claims for up to five years. Data queries can be sent to Estimates.Support@lseg.com; no contact was provided for other questions or feedback. Reuters said the item was produced with automation and AI using LSEG and company data, then checked and edited by a Reuters journalist.

why it matters

The update highlights a mixed sector picture: stronger volumes and shareholder distributions contrast with lower expected completions, softer pricing and further pressure on Bellway’s margin.

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