Barratt Redrow (LON:BTRW) Releases Earnings Results

Barratt Redrow (LON:BTRW) released its quarterly earnings data on Wednesday. The company reported GBX 26.10 EPS 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 Stock Up 0.7%

Shares of BTRW stock traded up GBX 2.20 during trading on Thursday, hitting GBX 311. The company had a trading volume of 10,671,945 shares, compared to its average volume of 36,480,965. The stock’s 50-day moving average is GBX 302.97 and its two-hundred day moving average is GBX 281.22. The stock has a market capitalization of £4.31 billion, a price-to-earnings ratio of 20.87 and a beta of 1.37. Barratt Redrow has a 52 week low of GBX 235.40 and a 52 week high of GBX 410.29.

Key Barratt Redrow News

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

• Positive Sentiment: FY26 growth: Revenue increased 6.6% to £6.06 billion, while home completions rose 5%, signaling stronger delivery volumes and demand. Barratt Redrow FY26 Revenue Rises 6.6% to £6.06 Billion as Home Completions Increase 5%
• Positive Sentiment: Broker support: Royal Bank of Canada reaffirmed its “outperform” rating and set a GBX 350 price target, implying further upside from the recent trading range and reinforcing confidence in Barratt Redrow’s outlook. Royal Bank of Canada Reaffirms Barratt Redrow Outperform Rating
• Positive Sentiment: Insider purchase: Director Katie Bickerstaffe bought 6,526 shares for approximately £19,900 at GBX 305 each. The purchase may be viewed as a sign of management confidence in the company’s valuation and prospects.
• Positive Sentiment: Market leadership: Barratt Redrow was identified as a leading gainer as the FTSE 100 rose following UK inflation data, providing a favorable broader-market backdrop for the housebuilder. UK’s FTSE 100 Rises After Inflation Data; Barratt Redrow Leads
• Neutral Sentiment: Profitability remains modest: The company reported quarterly EPS of GBX 26.10, with a 3.60% net margin and 2.73% return on equity. Revenue and completions growth are encouraging, although the relatively low margins remain a consideration for investors. Barratt Redrow Earnings Results

Wall Street Analyst Weigh In

A number of brokerages have issued reports on BTRW. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Barratt Redrow from GBX 454 to GBX 366 and set a “buy” rating on the stock in a report on Tuesday, June 23rd. JPMorgan Chase & Co. decreased their target price on shares of Barratt Redrow from GBX 520 to GBX 350 and set an “overweight” rating on the stock in a report on Tuesday, June 16th. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 303 target price on shares of Barratt Redrow in a research note on Wednesday, August 12th. Royal Bank Of Canada restated an “outperform” rating and set a GBX 350 price target on shares of Barratt Redrow in a research report on Wednesday. Finally, Berenberg Bank reaffirmed a “buy” rating and issued a GBX 348 price target on shares of Barratt Redrow in a report on Thursday, July 16th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of GBX 373.10.

Insider Buying and Selling

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

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.