Bellway Reports Growth in Half-Year Completions and Prices, Advances Share Buyback

Half-year 2026: completions up, pricing firmer, capital returns ticking along

Bellway has posted a steady trading update for the six months to 31 January 2026. Completions nudged higher, average selling prices continued to firm, and revenue moved ahead despite a tricky autumn selling season. The order book is a touch lighter year-on-year, but guidance for higher full-year volumes and a slightly better margin is intact.

For shareholders, the share buyback is progressing and the balance sheet remains conservative, even with a small rise in net debt as outlet openings and land investment ramp in the spring.

Key numbers at a glance

Metric	H1 FY26	H1 FY25
Total completions	4,702 homes	4,577 homes
Average selling price	around £322,000	£310,581
Housing revenue	around £1.51bn	£1,421.6m
Private reservations per outlet per week (incl. bulk)	0.47	0.51
Private reservations per outlet per week (excl. bulk)	0.46	0.45
Weekly private reservations	114	127
Overall reservations per week (incl. social)	148	160
Cancellation rate	13%	14%
Forward order book (units)	4,442	4,726
Forward order book (value)	£1,241.6m	£1,311.5m
Average sales outlets	244	248
Net debt at period end	£72m	£8.0m (net debt)
Adjusted gearing (incl. land creditors)	around 10%	8.5%
Share buyback progress	1.76m shares, ~£48m	n/a

Completions and prices: revenue momentum despite headwinds

Completions rose 2.7% to 4,702, with private homes still 79% of the mix. The average selling price moved up to around £322,000, helped by geography and mix. Incentives held broadly steady at 4-5%, which is a decent sign of pricing discipline rather than chasing volume at any cost.

That combination pushed housing revenue up by over 6% to around £1.51 billion. In a market where affordability has been a brake, growing both volumes and prices is a respectable result.

Reservations and order book: softer on bulk, firmer underneath

Autumn trading was subdued. Private reservations per outlet per week, including bulk deals, slipped to 0.47 from 0.51. Excluding bulk sales, the rate edged up to 0.46 from 0.45 – a small but telling improvement in underlying retail demand.

The weekly private reservation run-rate fell to 114 (from 127), and the overall rate including social homes was 148 (from 160). Cancellations remain low at 13% (14%), which helps stability. The forward order book stands at 4,442 homes worth £1,241.6 million, down year-on-year, reflecting the quieter autumn and fewer bulk sales. Management highlights a “good pipeline” of bulk opportunities expected to convert in H2 – worth watching for a pickup as the spring selling season beds in.

Guidance intact: 9,200 homes and an 11% operating margin

Bellway holds guidance steady. For FY26, it targets around 9,200 homes (up from 8,749 in FY25), an average selling price around £320,000 (FY25: £316,412), and an underlying operating margin of around 11.0% (FY25: 10.9%). If delivered, that points to gentle operational gearing and a nudge up in profitability, supported by more outlets opening in H2.

The early signs in the spring selling season are “encouraging”, with better reservation rates and lead flow versus autumn. That said, mortgage affordability and the wider economic backdrop remain clear sensitivities.

Capital returns: buyback progressing, dividend cover guided at 2.5x

The £150 million share buyback launched in October 2025 is “progressing well”, with 1.76 million shares acquired for about £48 million during the half. The Board also intends to keep returning excess capital in future years.

On dividends, Bellway reiterates a sustainable ordinary policy with underlying dividend cover of around 2.5 times for the full year. The precise dividend per share is not disclosed at this stage.

Balance sheet and land: disciplined investment, low gearing

Net debt at the half-year was £72 million and adjusted gearing, including land creditors, was around 10%. That is low for a cyclical sector and gives flexibility to invest and return cash.

Land buying was deliberately selective: 4,721 owned and controlled plots were contracted across 15 sites for £227 million, versus 5,246 plots across 32 sites last year. The standout is a large site of about 1,900 plots in the Dunfermline Strategic Development Area, providing a multi-year anchor for the Scotland West and Scotland East divisions.

The strategic land bank was further strengthened with option agreements on 11 sites, planning submissions for 29 sites (around 3,900 plots), and a plan to submit a further 30 sites (around 6,500 plots) by July 2026. That pipeline underpins medium-term outlet growth.

Policy backdrop: planning reform welcome, first-time buyer support needed

Management welcomes Government planning reforms but calls for early demand-side support for first-time buyers. In practice, any credible support scheme would likely ease affordability constraints and lift private reservations – a potential positive catalyst, though timing and design are uncertain.

What this means for Bellway shareholders

The positives

• Completions, average selling price and housing revenue all moved higher, despite a tough autumn.
• Underlying private demand (excluding bulk) improved slightly, and cancellations stayed low.
• Guidance maintained for higher FY volumes and a slightly stronger operating margin.
• Strong land discipline with a flagship 1,900-plot site to support Scottish growth.
• Capital returns are ongoing: buyback advancing and dividend cover guided at around 2.5x.
• Balance sheet remains conservative with c.10% adjusted gearing.

The watch-fors

• Order book is lower year-on-year and H1 reservations were softer due to fewer bulk deals – H2 conversion is important.
• Mortgage affordability remains the swing factor for the spring selling season.
• Net debt has ticked up; still modest, but bears watching as outlet openings and land spend step up.

My take: steady execution with optionality into H2

This is a solid update rather than a spectacular one. Bellway is executing the plan: protect price, grow outlets, be selective on land, and keep capital returns flowing. The lower order book and softer bulk sales are the blemishes, but management flags a pipeline for H2 and early spring trading is improving.

If mortgage rates drift down or first-time buyer support lands, the group looks well placed to capture demand with its outlet openings and strong strategic land. In the meantime, an 11% margin target, low gearing and an active buyback offer a decent cushion for shareholders.