Investors welcome Bellway results and share buyback
Housebuilders have plenty of challenges right now, but there are some bright spots in this FTSE 250 company's annual results.
13th October 2026 09:41
by Victoria Scholar from interactive investor
Bellway (LSE:BWY) reported revenue of £3.16 billion for the year ended 31 July, up 13.4% and ahead of analysts’ expectations for £3.13 billion. The housebuilder announced a strong adjusted operating cash flow up 36% to £868.6 million, and can therefore return more cash to shareholders through a £150 million extension to its share buyback programme.
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However, underlying pre-tax profit hit £305.7 million, up 5.7% year on year but below forecasts. It expects operating margin to come down in the new financial year and is targeting fewer housing completions at between 9,000 and 9,400, after the figure rose by 10.8% to 9,695 in full-year 2026.
Bellway is dealing with a challenging economic backdrop. Build cost inflation, which is expected to hit 3-4% in 2027, as well as sales discounts are putting pressure on margins. Meanwhile, the Middle East conflict and this year’s energy shock have pushed up mortgage rates, creating consumer confidence and affordability pressures in the housing market. And with the Bank of England leaning towards a hawkish bias, those pressures show no sign of abating.
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Bellway is responding to the ‘challenging near-term outlook’ by focusing on cost control with a review of overheads as it looks to make savings.
However, the housing market continues to face a chronic lack of supply and Andy Burnham’s government has made housing one of its top priorities. The announcement of the Your First Home scheme last month sent shares in the sector higher. Although this was not sufficient to offset this year’s slide for Bellway which has shed a quarter of its stock market value year-to-date.
Despite weaker margins and mortgage affordability concerns, shares in Bellway are higher this morning thanks to its share buyback, revenue growth, robust housing completions and focus on cost savings. The broader sector is enjoying a bounce too with the likes of Taylor Wimpey, Barratt Redrow, and Persimmon also enjoying strong gains.
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