# Barratt Redrow FY26 remains on track after solid third quarter

- Link: https://www.directorstalkinterviews.com/barratt-redrow-fy26-remains-on-track-after-solid-third-quarter/4121248908
- Published: 2026-04-15T07:33:47+01:00
- Author: Amilia Stone

**Barratt Redrow plc** (LON:BTRW) has issued a trading update in respect of the 
13-week period from 29 December 2025 to 29 March 2026. Comparatives are to the prior
year equivalent period (referenced as 2025) unless otherwise stated.

> **_David Thomas, Chief Executive of Barratt Redrow plc commented:_**
> “Barratt Redrow had a solid third quarter, with a resilient reservation rate underpinned
> by good customer demand. Despite heightened macroeconomic uncertainty, we expect
> the Middle East conflict to have limited impact on FY26 performance, given our
> strong forward sales position and advanced build programme.  We are therefore 
> on track to deliver total housing completions^(1) and adjusted profit before tax
> ^(2) in line with consensus expectations^(3).
> “Looking ahead, we have a proven track record of navigating uncertainty and remain
> confident in our financial strength and ability to adapt to changing market conditions.
> We will continue to closely monitor developments while maintaining a disciplined
> approach to capital allocation, selective land investment and rigorous cost control.”

**Highlights**

| ·    Net private reservation rate, excluding private rental sector (‘PRS’) and other multi-unit sales (‘MUS’) reservations, 3.2% higher at 0.64 compared to 0.62 in the comparable period. | 
| ·    Net private reservation rate including PRS and other MUS reservations at 0.67, 6.3% higher compared to 0.63, reflecting additional PRS and MUS activity during this period. | 
| ·    On track to deliver total home completions of between 17,200 and 17,800 (including c.600 JV) home completions for the full year. | 
| ·    94%^(4) forward sold for FY26 (2025: 96%) with total forward sales (including JVs) at 29 March 2026 at £3,539.2m (30 March 2025: £3,138.6m). | 
| ·    Retained five-star homebuilder status for the 17^(th) consecutive year – an unparalleled industry record. | 
| ·   Year-end net cash now expected to be between £550m and £650m, c. £150m ahead of our previous guidance reflecting the timing of legacy building remediation payments and reduced land investment. | 
| ·   The second £50m tranche of our £100m share buyback programme started on 5 January 2026, with £33.3m deployed on share buybacks through to 29 March 2026. |

**Trading**

**_Reservation rates_**

The Group’s private reservation performance continued to be resilient over the period.
Our net private reservation rate, excluding PRS and other MUS, is slightly ahead
of last year at 0.64 reservations per active sales outlet per week (2025: 0.62).
Sales incentive levels were in line with HY26 and have supported reservation rates
during the period.

Our overall private reservation rate at 0.67 (2025: 0.63) included an increased 
contribution of 0.03 (2025: 0.01) from PRS and other MUS reservations in the period.

**_Sales outlets_**

In line with our FY26 guidance, we operated from an average of 408 outlets (2025:
419) in the period, including 9 JV outlets (2025: 10) and we continue to expect 
to operate from c. 405 average sales outlets, including JVs, throughout FY26. 

We launched 32 new sales outlets in the period, including our first two synergy 
sales outlets with both Barratt Homes and David Wilson Homes outlets added to the
Redrow site at Curborough Fields, Lichfield. With our first synergy sales outlets
now open, we are ahead of schedule and now on track to open a further 6 such outlets
by the year end, 22 in FY27, with the balance of 15 sales outlets scheduled to launch
in FY28.

In the year to date we have launched 97 sales outlets and we remain on track to 
operate from between 425 and 435 average sales outlets, including JVs, in FY27.

We also now have detailed planning consent on 94% of plots expected to deliver home
completions in FY27 (2025: 95% of plots expected to deliver home completions in 
FY26).

**_Home completions and order book_**

In the period we delivered 3,274 (2025: 3,717) total home completions (including
JVs of 57; 2025: 81) bringing total home completions in the financial year to date
to 10,718 homes (2025: 10,824^(5)). The lower level of completions in the period
reflected a particularly strong comparable quarter in FY25 ahead of the end of Stamp
Duty relief.    

As a result of increased construction work in progress at the end of the period,
and our scheduled build activity through the balance of FY26, we remain on track
to deliver total home completions for the full year in line with guidance.

Total forward sales (including JVs) at 29 March 2026 were 11.2% higher at 11,395
homes (30 March 2025: 10,245). The value of our total forward sales at 29 March 
2026 was £3,539.2m (30 March 2025: £3,138.6m).

Our private home order book at 5,643 homes (30 March 2025: 5,503) was 2.5% higher
in terms of volume relative to the position a year ago. It was 1.7% ahead in value
terms at £2,281.5m (30 March 2025: £2,243.1m), reflecting the mix of homes and the
impact of underlying deflation.

With the strength of the private order book entering the second half, along with
the solid private reservation rate in the third quarter, we are now 94%^(4) forward
sold for FY26 (2025: 96%).

**_Build cost inflation_**

At our interim results in February, we guided towards c. 2% build cost inflation
overall for FY26, with an anticipated rate of c. 3% in the second half. We are maintaining
this guidance for FY26 however we recognise that higher energy costs are likely 
to be reflected in increased building material costs in FY27.  We will have better
visibility on build cost inflation for FY27 with our next trading update in mid-
July.

Our enhanced purchasing scale in the market, our excellent relationships developed
with our supply chain partners over many years, and our discipline on costs, means
we are well placed to secure both our building material needs and the most competitive
pricing.   

In addition, our ability to switch from traditional to timber frame construction,
through Oregon our timber frame business, provides us with further flexibility should
we see significant movements in our traditional construction input costs.

**_Leadership in quality and [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)_**

The high standard of build quality across our sites has again been recognised by
our customers who have awarded Barratt Redrow the maximum 5 Star rating in the HBF
customer satisfaction survey for the 17^(th) successive year, an unmatched achievement
across our industry.  Our three brands are all rated ‘Excellent’ on Trustpilot.

**Redrow integration progress**

Since the start of FY26 the Group has been operating from 32 housebuilding divisions,
in line with guidance provided at the time of the acquisition, and the IT integration
will complete this month. 

Our £100m target in respect of cost synergies has now been confirmed. We delivered
£20m of cost synergies in FY25 and we remain on track to deliver an additional £
50m of incremental synergies in FY26, with the balance of £30m being delivered by
the end of December 2027.   

This good progress on cost synergies will be further complemented by our highly 
disciplined approach to costs as we continue to drive supply chain efficiencies 
and further improve our overhead efficiency.

**Land**

During the period, we approved 2,465 plots for purchase across 14 sites (2025: 7,574
plots across 37 sites), bringing our total approvals for the financial year to date
to 4,010 plots across 29 sites (2025: 15,301 across 82 sites). 

This reduced level of land approvals is in line with our disciplined approach to
land purchasing, which is underpinned by the strength of our existing land bank.
Our long term goal, which we reiterated in our HY26 results, is to optimise our 
existing land bank by moving towards a target of 3.5 years of owned land bank plots
and 1.0 year of controlled land.  At the same time, we also saw fewer attractive
opportunities in the market over the period. 

Now, with a less certain backdrop, given recent geopolitical events and their likely
impact on mortgage rates and build cost inflation, we are being even more selective.

In this context, we now anticipate total land approvals for the financial year will
be between 7,000 and 9,000 plots, below our previous guidance range of between 10,000
and 12,000 plots and land spend of between £700m and £800m, from our previous guidance
range of between £800m and £900m. 

**Balance sheet and liquidity**

The Group remains financially strong. We anticipate strong operating cash flow generation
in the balance of FY26 as elevated work in progress is converted into cash through
increased home completions. With lower cash investment on land and the timing of
legacy building remediation payments, year-end net cash is now expected to be between
£550m and £650m, above our previous guidance of between £400m and £500m.

Our share buyback is ongoing, with 9.7 million Barratt Redrow shares acquired by
the Group in the period, for a total consideration of c.£33.3m.  This brings the
cumulative buyback activity to 22.9 million shares to date in FY26 for consideration
of £83.7m, with the balance to be completed prior to the end of June 2026. 

**Outlook**

Following our solid third quarter performance, and with sales rates remaining resilient,
we are reiterating our unchanged guidance for FY26 total home completions of between
17,200 and 17,800 (including c.600 JV) homes and we are on track to deliver adjusted
profit before tax^(2) in line with consensus expectations^(3).

The ongoing conflict in the Middle East is contributing to increased economic uncertainty,
including the potential for a more prolonged higher interest rate environment and
renewed cost pressures. While we currently expect any direct impact on FY26 to be
limited, visibility beyond the current financial year remains more uncertain.

In this context, we are closely monitoring developments while maintaining a disciplined
approach to capital allocation, land investment and cost control, ensuring we retain
the flexibility to adapt to changing market conditions.

Our three complementary brands, strong financial position and high-quality landbank
position us well to navigate the current environment and support sustainable growth
and shareholder returns.

**Notes:**

| 1.   Including joint ventures (JVs). Unless otherwise stated all figures quoted exclude JVs. | 
| 2.  In addition to the Group using a variety of statutory performance measures, alternative performance measures (APMs) are also used. Definitions of APMs and reconciliations to the equivalent statutory measures are detailed in the Glossary and Definitions of our HY26 results statement. Measures before PPA adjustments are presented as if the assets and liabilities recognised, as a result of the acquisition of Redrow plc, had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS. | 
| 3.   The company compiled consensus for FY26 adjusted profit before tax before the impact of purchase price allocation adjustments but after the reclassification of legacy building safety provision non-cash finance charges as adjusted items was £568m on 14 April 2026 with a high of £586m and a low of £534m.  The company compiled consensus for total home completions including JVs is 17,416 with a high of 17,589 and a low of 16,998. The company compiled consensus is based on 13 analysts who have provided updated forecasts since the HY26 results. | 
| 4.   Based on mid-point of FY26 total home completion guidance after deducting 600 JV home completions and assuming c. 20% affordable home completions within the wholly owned completions mix. | 
| 5.   Based on aggregated performance of Barratt Redrow plc from 1 July 2024 to 30 March 2025 |

**Note on forward looking statements**

_Certain statements in this announcement may be forward looking statements. By their
nature, forward looking statements involve a number of risks, uncertainties or assumptions
that could cause actual results to differ materially from those expressed or implied
by those statements. Forward looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will continue
in the future. Accordingly undue reliance should not be placed on forward looking
statements. Unless otherwise required by applicable law, regulation or accounting
standards, the Group does not undertake to update or revise any forward-looking 
statements, whether as a result of new information, future developments or otherwise._

**Conference call for analysts and investors**

David Thomas, Chief Executive, Mike Roberts, Chief Operating Officer and John Messenger,
Group Investor Relations Director, will be hosting a conference call at 08:30am 
today, Wednesday 15 April 2026, to discuss this Trading Update.

To access the conference call:

**Please register through the following:** [Link](https://event.loopup.com/SelfRegistration/registration.aspx?booking=heFfpkDd3RmBGNdqdnb4kXn8YRQ5AUZN3wRyq9YUq4s=&b=2389e96d-457b-46a8-bebb-fec356d5b031)

A recording of the conference call and question and answer session will be available
on our website later today.

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