Bellway's shares ascend due to annual completions outperforming predictions
British housebuilder Bellway has announced its expectations for housing completions in the current financial year (FY26), projecting a range of 9,000 to 9,200 homes. This forecast is based on the company's strong performance in FY25, where completions rose 14.3% to 8,749 homes, exceeding earlier forecasts.
In FY25, Bellway reported a 17% increase in housing revenue and an improved operating margin approaching 11%. The company attributes this success to a healthy forward order book, an active outlet opening programme, a high-quality land bank, and operational capacity across its divisions.
The 5% projected growth for FY26 reflects rising private reservation rates per outlet and efforts to enhance capital efficiency and cash generation. This growth position Bellway well for delivering volume growth and shareholder returns if market conditions remain stable.
Key Highlights from FY25
- Bellway completed 8,749 homes in the year ended July 2022, a 14.3% increase.
- Bellway's operating margin rose to 11% over the year.
- The company finished financial 2025 with net cash of £42 million.
- The value of Bellway's order book swelled to £1.5 billion from £1.4 billion in financial 2024.
- Bellway's forward order book comprised 5,307 homes as of 31 July 2022.
Market Outlook
As the UK's fifth-largest home creator by volume, Bellway plays a significant role in the UK's housing market. The company's weekly private reservations per outlet rose to 0.57 from 0.51, and excluding bulk sales, the figure increased to 0.52 from 0.49.
Analyst Dan Lane of Robinhood UK comments that if market conditions remain stable, Bellway is well-positioned to deliver further growth in FY26. He also notes that a healthy order book shows buyer confidence is starting to seep back into the market. Lane suggests that a rate cut last week won't do any harm to the trend of buyer confidence.
Bellway contracted to purchase 8,120 plots last year at a value of £567 million. This strategic land acquisition underpins the company's long-term growth strategy.
In summary, Bellway's optimistic outlook for housing completions in FY26 is based on a combination of factors, including a healthy forward order book, an active outlet opening programme, a high-quality land bank, operational capacity across its divisions, rising private reservation rates, and efforts to enhance capital efficiency and cash generation. If market conditions remain stable, Bellway is well-positioned to deliver volume growth and shareholder returns.
| Financial Year | Projected Completions | Basis for Projection | |----------------|----------------------|------------------------------------------------| | FY25 (ended 31 July 2025) | 8,749 (actual) | 14.3% growth; beat forecast of 8,600–8,700 | | FY26 (current year) | ~9,000 to 9,200 | 5%+ growth expected based on order book, outlet openings, land bank, and operational capacity, if market stable |
In the current financial year (FY26), Bellway, a prominent member of the FTSE 250 industry, aims for housing completions between 9,000 to 9,200 homes, anticipating a 5% growth. This projection is grounded in a robust forward order book, active outlet opening programme, high-quality land bank, operational capacity, and plans to strengthen capital efficiency and cash generation, provided market conditions remain stable.
The positive outlook for FY26, within the finance and business sector, is subsequent to Bellway's impressive performance in FY25, where it completed 8,749 homes, reporting a 17% increase in housing revenue and an improved operating margin approaching 11%. This growth is not limited to Bellway's financial success, as it also reflects a positive trend in the housing market, signified by rising private reservation rates and a swelled order book value.
