Barratt Redrow (LON:BTRW) Issues Earnings Results

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

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 Performance

Shares of BTRW stock traded up GBX 5.90 during trading on Thursday, hitting GBX 314.70. The company had a trading volume of 11,147,515 shares, compared to its average volume of 36,483,605. The stock’s 50-day moving average price is GBX 302.97 and its 200 day moving average price is GBX 281.22. The firm has a market capitalization of £4.36 billion, a P/E ratio of 21.12 and a beta of 1.37. Barratt Redrow has a one year low of GBX 235.40 and a one year high of GBX 410.29.

Insiders Place Their Bets

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

More Barratt Redrow News

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

• Positive Sentiment: Operational growth: FY26 revenue increased 6.6% to £6.06 billion, while home completions rose 5%, providing evidence of stronger delivery volumes. 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 recent trading levels. Royal Bank of Canada Reaffirms Barratt Redrow Rating
• Positive Sentiment: Insider confidence: Director Katie Bickerstaffe bought 6,526 shares for approximately £19,904 at GBX 305 each, a signal that an insider views the valuation as attractive.
• Neutral Sentiment: Results-day reaction: The shares bounced despite an article describing conditions as tough, suggesting investors may have focused on resilient revenue and completion growth while recognizing that the outlook remains challenging. Tough times for Barratt Redrow but shares bounce on results day
• Neutral Sentiment: Broader market support: The FTSE 100 rose following UK inflation data, creating a generally supportive backdrop for UK-listed equities, although this is not specific to Barratt Redrow. UK’s FTSE 100 Rises After Inflation Data; Barratt Redrow Leads
• Negative Sentiment: Profitability remains subdued: Reported net margin of 3.60% and return on equity of 2.73% indicate limited profitability, reinforcing concerns about difficult trading conditions even as revenue and completions improve.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on BTRW shares. Citigroup cut Barratt Redrow to a “buy” rating in a research report on Wednesday, July 22nd. JPMorgan Chase & Co. lowered their price objective on Barratt Redrow from GBX 520 to GBX 350 and set an “overweight” rating for the company in a research note on Tuesday, June 16th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 350 price objective on shares of Barratt Redrow in a research note on Wednesday. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 348 price objective on shares of Barratt Redrow in a research report on Thursday, July 16th. Finally, Jefferies Financial Group reaffirmed a “hold” rating and set a GBX 303 price target on shares of Barratt Redrow in a report on Wednesday, August 12th. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target 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.