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GOOD

Bellway Delivers Solid Trading Performance

Why we think this is good

Bellway has delivered a solid trading performance, with robust growth in volume output and profits expected in the full financial year. The company has a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26. While there are some cautionary notes around market conditions and risks, the overall outlook is positive.

Key Points

  • Robust trading through the spring selling season, with an increase in customer confidence and reservation rates
  • Volume output expected to be between 8,600 and 8,700 homes, up from 7,654 homes in the prior year
  • Underlying operating margin expected to approach 11.0%, up from 10.0%
  • Forward order book increased by 7.7% and comprised 5,759 homes at 1 June 2025
  • Well-capitalised balance sheet with modest net debt of £73m, focus on preserving balance sheet strength

Summary

The homebuilder reports strong trading, with volume and profit growth expected in the full year. The company has a healthy forward order book and land bank to support further expansion.

Bellway has delivered a solid trading performance, with an increase in customer confidence and reservation rates compared to the first half of the financial year. Volume output is now expected to be between 8,600 and 8,700 homes, up from 7,654 homes in the prior year, and the underlying operating margin is expected to approach 11.0%, up from 10.0%. The forward order book increased by 7.7% and comprised 5,759 homes at 1 June 2025. The company has a well-capitalised balance sheet with modest net debt of £73m and is focused on preserving balance sheet strength.

Key Dates

12 August 2025
Next scheduled trading update, covering the financial year ending 31 July 2025
FY2026
Bellway expects to deliver cumulative volume growth of 20% in the two years to 31 July 2026
TRADING UPDATE