Bellway (LON:BWY) Releases Earnings Results

Bellway (LON:BWY) posted its quarterly earnings results on Tuesday. The company reported GBX 91.20 EPS for the quarter, Digital Look Earnings reports. Bellway had a return on equity of 4.45% and a net margin of 5.66%.

Here are the key takeaways from Bellway’s conference call:

• Delivering full-year guidance underpinned by strong cash plans — management targets FY2026 underlying operating profit of £320–330m, volumes of 9,300–9,500 homes, an ASP around £325k and adjusted operating cash flow of £750–800m.
• Sales momentum has improved since the year start with a recent private sales rate of 0.66 (first six weeks) and regional strength in the North/Midlands (~0.75), while incentives are at c.5% and management says it does not plan to raise them.
• Margin pressure and inflation risks — H1 underlying operating margin fell 50bp to 10.5% (gross margin ~16.2%), driven by higher incentive use, lack of house price inflation, embedded build-cost inflation and potential further cost risk from the Middle East conflict.
• Balance sheet and capital allocation remain supportive — a large landbank of 94,000 plots, low adjusted gearing (~10.3%), modest net debt of £72m at H1, a completed ~£64m of a £150m buyback and a clear focus on WIP efficiency to drive cash generation.
• Building-safety position is well provided but uncertain — a provision of £507m with budgeted FY26 spend >£150m (partly dependent on ~£90m of government reimbursements) and £81m of recoveries recognized to date.

Bellway Stock Performance

LON BWY opened at GBX 1,899 on Tuesday. Bellway has a 1-year low of GBX 1,899 and a 1-year high of GBX 2,998. The company has a market capitalization of £2.22 billion, a P/E ratio of 14.41, a PEG ratio of 3.40 and a beta of 1.22. The business has a 50 day moving average price of GBX 2,616.01 and a 200 day moving average price of GBX 2,609.05. The company has a debt-to-equity ratio of 6.20, a current ratio of 4.77 and a quick ratio of 0.50.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on BWY shares. JPMorgan Chase & Co. increased their price objective on Bellway from GBX 3,280 to GBX 3,820 and gave the stock an “overweight” rating in a research report on Thursday, December 4th. Citigroup boosted their target price on shares of Bellway from GBX 3,090 to GBX 3,100 and gave the stock a “buy” rating in a research report on Monday, December 8th. The Goldman Sachs Group began coverage on shares of Bellway in a research note on Monday, November 24th. They set a “neutral” rating and a GBX 2,844 price target on the stock. Finally, Jefferies Financial Group cut their price target on shares of Bellway from GBX 3,476 to GBX 3,461 and set a “buy” rating for the company in a report on Monday, January 19th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Bellway presently has an average rating of “Moderate Buy” and an average target price of GBX 3,237.50.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.