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Bellway PLC on Tuesday reported mixed first half results, guiding higher-than-expected full-year house volume but at a lower-than-forecast profit margin. The Newcastle upon Tyne-based housebuilder said pretax profit was broadly flat at £139.9 million in the six months to January compared with £140.8 million a year prior. Underlying operating profit edged up 1.5% to £159.0 million from £156.6 million, but was below £170 million consensus. Operating margin slipped to 10.5% from 11.0%. Bellway said it is on track to deliver full-year underlying operating profit within the range of £320 million to £330 million. This would be up from £303.5 million in the financial year to July 2025, but is below £334 million cited by analysts at Stifel. The full-year operating margin is forecast to be similar to the first half at around 10.5%, down from 10.9% in the prior financial year. Bellway had previously forecast a margin of 11.0%. Full-year volume output is now expected to be ahead of previous guidance at between 9,300 and 9,500 homes, up from around 9,200 before, and higher than 8,749 the year prior. The overall average selling price is now anticipated to be around £325,000, up from £316,412 a year ago, and above previous guidance of £320,000. The increase is mainly due to changes in product mix, including the expected conversion of completions from the bulk sales pipeline, Bellway explained. In response, shares in Bellway fell 9.1% to 1,943.91 pence each in London on Tuesday morning. The wider FTSE 250 index was down just 0.7%. Bellway said demand has improved since the start of the year, with a stronger reservation rate in recent weeks. The Middle East conflict has not materially affected trading so far, but Bellway warned of potential risks from inflation and mortgage market volatility. In the six weeks since February 1, Bellway said the private reservation rate per outlet per week, including bulk sales, was 0.70 compared to 0.76 a year ago. The private reservation rate excluding bulk sales was flat at 0.66. For the half-year to January, the private reservation rate per outlet per week, including bulk sales, was 0.47, down from 0.51 on year. The private reservation rate excluding bulk sales was 0.46 compared to 0.45. Housing completions for the half-year rose 2.7% to 4,702 homes from 4,577 homes a year prior, with the average selling price increasing to £322,180 from £310,581. Revenue increased 6.3% to £1.52 billion from £1.43 billion. Bellway lifted its interim dividend 9.5% to 23.0p from 21.0p and continues its £150 million share buyback, with around £64 million completed to date. Net debt widened to £72.0 million from £8.0 million, reflecting shareholder returns, while the balance sheet remains well capitalised. Chief Executive Jason Honeyman said: ‘Bellway has delivered a robust first half performance in a challenging market. While our industry continues to face several headwinds, we have seen an improvement in customer demand and reservations since the start of the new calendar year.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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