EarningsQ4 2026 Earnings Report
DE:41B Q4 2026 EPS Results
Actual EPS€1.10
Consensus EPS€1.10
Beat/MissMet expectations
One Year Ago EPS€1.02
DE:41B Q4 2026 Revenue Results
Actual Revenue€1.94B
Expected Revenue€1.93B
Beat/MissBeat by +€12.00M
YoY Revenue Growth+21.33%
Earnings Announcement Details
QuarterQ4 2026
Date10/13/2026
TimeBefore Open
Conference CallTuesday, October 13, 2026
DE:41B Upcoming Earnings
Bellway's next earnings date is estimated for March 30, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive, with strong FY '26 volume, profit and cash-generation performance, a robust balance sheet, increased shareholder returns, ongoing land investment and multiple operational efficiency initiatives. However, management expects lower FY '27 volumes and margins amid higher mortgage rates, affordability pressure, build cost inflation, planning delays and significant build-safety expenditure. The longer-term outlook remained positive, supported by higher-margin land, potential first-time buyer policy support and a pathway toward 10,000 homes and a 15% return on equity.Company Guidance
Strong Full-Year Volume and Profit Performance
FY '26 volumes increased by 10.8% to 9,695 homes, while operating profit increased by 5.6% to GBP 321 million and underlying profit before tax increased by 5.7% to GBP 306 million.
Growth Across Private and Social Housing
Bellway delivered double-digit growth in both private and social housing output. Social homes represented around 21% of completions, in line with the prior year.
Bulk Completions More Than Doubled
Bulk completions more than doubled to 615 homes, representing around 6% of output. The company expects bulk completions to exceed 10% of output in FY '27 and is targeting around 1,200 bulk homes during the year.
Higher Average Selling Price Supported by Mix
Average selling price increased by 2.5% to just over GBP 324,000, entirely reflecting geographic and product mix, with no underlying house price inflation.
Strong Operating Cash Generation
Adjusted operating cash flow increased by 36% to GBP 869 million, equivalent to 2.7x underlying operating profit and ahead of the target to maintain conversion of at least 2x over the 3 years to FY '28.
Improved Working Capital and Asset Efficiency
Total WIP reduced by GBP 72 million, land held on the balance sheet reduced by GBP 152 million to GBP 2.35 billion, and WIP turn improved from about 1.3 to over 1.5 during the year. Management said it is on a good track toward a WIP turn of 2.
Robust Balance Sheet and Low Leverage
Bellway ended FY '26 with net cash of GBP 158 million, adjusted gearing including land creditors of 3%, and a robust, well-capitalized balance sheet. Net asset value per share increased by 4.2% to just over GBP 31.
Increased Shareholder Returns
The proposed total dividend increased by 7% to 75.0p per share. Bellway returned GBP 224 million to shareholders through dividends and share buybacks, compared with GBP 70 million in the prior year, and commenced a further GBP 150 million share buyback for FY '27. Dividends and buybacks are expected to total around GBP 450 million across FY '26 and '27.
High-Margin Land Bank Supports Future Recovery
The land bank with detailed planning permission has an embedded gross margin of around 17%; more than 70% of plots have margin above 15% and 53% have margin above 18%. Management expects gross margin to begin recovering from FY '28 as higher-margin land contributes a greater share of completions.
Substantial Land and Strategic Growth Platform
The total land bank was around 95,000 plots, evenly split between owned and controlled land and strategic land. The owned and controlled land bank represented around 4.5 to 5 years of output, while the company targeted around 30,000 plots with detailed planning permission to support a return to 10,000 homes per year.
Continued Selective Land Investment
Bellway contracted on 8,600 plots during FY '26, with 80% in the better-selling Midlands, North and Scotland. Land investment is forecast at around GBP 500 million in FY '27, with the company stating it has the firepower to invest more if conditions improve.
Strategic Land Pipeline Provides Outlet and Margin Opportunity
More than half of the strategic land plots have a positive planning status, with around 80 planning applications in the system. Strategic land is expected to generate around 15% of completions in both FY '27 and FY '28, potentially growing to around 20% in FY '29.
Operational Efficiency Program Advancing
The timber frame factory is complete and output is expanding. House-type redesign is complete, with the new Bellway collection optimized for timber frame and capable of improving build times by up to 6 weeks per house.
Material Cost Savings Achieved
Since April, Bellway received requests for more than GBP 22 million of energy-related cost increases from subcontractors but authorized GBP 3 million, saving around GBP 20 million, or 1% of build cost inflation. The new three-tier specification is expected to save GBP 5 million in FY '27, including almost GBP 1,300 on a four-bedroom home.
Strong Bulk Sales Opportunity
Management reported a significant pipeline of bulk opportunities and said it could potentially complete more than the targeted 1,200 bulk homes if it chose to do so. Bulk demand was supported by affordable-housing funding allocations and strong rental economics.
Potential Support from First-Time Buyer Scheme
Management said the proposed Your First Home scheme has the potential to boost volumes by around 10% and provide a path back to at least 10,000 homes per year and a return on equity of 15%. Bellway said it is well placed to capture first-time-buyer demand and is engaging directly with government and the HBF.
Longer-Term Return Ambition
Management reiterated a clear pathway toward an underlying operating margin and return on equity of 15%, supported by stronger cash generation, operational efficiencies, higher-margin land and shareholder returns.
Future Home Standards Fully Embedded
Bellway said the costs of future home standards are fully provided for and that the required systems have been implemented.
DE:41B Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed