Barratt Redrow (LON:BTRW) Issues Quarterly Earnings Results

Barratt Redrow (LON:BTRW) posted its quarterly earnings data on Wednesday. The company reported GBX 26.10 earnings per share for the quarter, Digital Look Earnings reports. Barratt Redrow had a net margin of 3.60% and a return on equity of 2.73%.

Here are the key takeaways from Barratt Redrow’s conference call:

• FY 2027 completion guidance was maintained at 17,500–17,900 homes, supported by resilient underlying reservations and a 6% increase in the forward sales position. However, average outlet guidance was reduced to approximately 405 because of delays in planning approvals.
• The Redrow integration is complete, with the full £100 million cost-synergy target confirmed. The company expects the annual profit-and-loss contribution from synergies to rise to approximately £95 million in FY 2027, while dual- and triple-branded developments are showing encouraging sales rates.
• Adjusted pre-tax profit fell to £572.8 million, while the adjusted operating margin declined to 9.9% as softer underlying pricing, higher incentives, and build-cost inflation outweighed volume growth. Build-cost inflation is expected to run at 3%–4% in FY 2027.
• The balance sheet strengthened to a £61.4 million net surplus, and the company plans total FY 2027 capital returns of £400 million, including £386 million through share buybacks. Net cash at FY 2027 year-end is expected to be £400 million–£500 million, subject to land activity.
• Legacy building-safety obligations remain a significant cash burden, with a total provision of £1.05 billion and expected direct remediation and fund payments of approximately £300 million in FY 2027 and £450 million in FY 2028. The embedded land-bank gross margin also fell to 17.3% amid weaker pricing, cost inflation, and increased incentives.

Barratt Redrow Trading Down 0.7%

LON BTRW opened at GBX 306.60 on Thursday. Barratt Redrow has a 1-year low of GBX 235.40 and a 1-year high of GBX 410.29. The firm’s fifty day simple moving average is GBX 302.97 and its 200-day simple moving average is GBX 281.22. The company has a market capitalization of £4.25 billion, a PE ratio of 20.58 and a beta of 1.37.

Barratt Redrow News Summary

Here are the key news stories impacting Barratt Redrow this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating and set a GBX 350 price target, implying meaningful upside from the recent trading level. Royal Bank of Canada rating report
• Positive Sentiment: FY26 revenue increased 6.6% to £6.06 billion, while home completions rose 5%, indicating stronger delivery volumes and continued demand for Barratt Redrow’s homes. Barratt Redrow FY26 revenue and completions report
• Positive Sentiment: Director Katie Bickerstaffe purchased 6,526 shares at GBX 305, investing approximately £19,904. Insider buying can signal confidence in the company’s valuation and outlook.
• Positive Sentiment: Barratt Redrow was among the market leaders as the FTSE 100 advanced following inflation data, suggesting that the broader market and interest-rate outlook provided some support for housebuilders. UK FTSE 100 rises after inflation data
• Neutral Sentiment: The company reported quarterly EPS of GBX 26.10, with a 3.60% net margin and 2.73% return on equity. The results confirm profitability, but the relatively thin margin and modest return on equity may temper the market’s response.

Insiders Place Their Bets

In other news, insider Geeta Nanda bought 1,701 shares of the company’s stock in a transaction on Wednesday, July 22nd. The shares were bought at an average cost of GBX 294 per share, with a total value of £5,000.94. Also, insider Katie Bickerstaffe purchased 6,526 shares of the business’s stock in a transaction dated Wednesday, September 16th. The shares were purchased at an average cost of GBX 305 per share, with a total value of £19,904.30. 0.31% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. Citigroup lowered Barratt Redrow to a “buy” rating in a report on Wednesday, July 22nd. Jefferies Financial Group reissued a “hold” rating and set a GBX 303 price target on shares of Barratt Redrow in a research report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft dropped their price target on Barratt Redrow from GBX 454 to GBX 366 and set a “buy” rating on the stock in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. decreased their price objective on Barratt Redrow from GBX 520 to GBX 350 and set an “overweight” rating for the company in a research report on Tuesday, June 16th. Finally, Berenberg Bank reaffirmed a “buy” rating and set a GBX 348 target price on shares of Barratt Redrow in a research note on Thursday, July 16th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of GBX 373.10.

Barratt Redrow Company Profile

Barratt Redrow plc is an exceptional FTSE 100 listed UK home builder, building the homes the country needs, and dedicated to quality, service and sustainability.

Together, we offer a range of highly respected and complementary brands, Barratt, David Wilson and Redrow.

We put our customers at the heart of everything we do, through our focus on:

✅ Quality – We deliver high-quality, energy-efficient homes which are built to the highest standards. Together, we have held more NHBC Pride in the Job Awards than any other housebuilder, for 20 years.