Barratt Redrow (LON:BTRW) Releases Earnings Results

Barratt Redrow (LON:BTRW) announced its quarterly earnings data on Wednesday. The company reported GBX 26.10 earnings per share for the quarter, Digital Look Earnings reports. Barratt Redrow had a return on equity of 2.73% and a net margin of 3.60%.

Here are the key takeaways from Barratt Redrow’s conference call:

• FY 2027 completion guidance was maintained at 17,500–17,900 homes, supported by resilient underlying reservations and a 6% increase in the forward sales position. However, average outlet guidance was reduced to approximately 405 because of delays in planning approvals.
• The Redrow integration is complete, with the full £100 million cost-synergy target confirmed. The company expects the annual profit-and-loss contribution from synergies to rise to approximately £95 million in FY 2027, while dual- and triple-branded developments are showing encouraging sales rates.
• Adjusted pre-tax profit fell to £572.8 million, while the adjusted operating margin declined to 9.9% as softer underlying pricing, higher incentives, and build-cost inflation outweighed volume growth. Build-cost inflation is expected to run at 3%–4% in FY 2027.
• The balance sheet strengthened to a £61.4 million net surplus, and the company plans total FY 2027 capital returns of £400 million, including £386 million through share buybacks. Net cash at FY 2027 year-end is expected to be £400 million–£500 million, subject to land activity.
• Legacy building-safety obligations remain a significant cash burden, with a total provision of £1.05 billion and expected direct remediation and fund payments of approximately £300 million in FY 2027 and £450 million in FY 2028. The embedded land-bank gross margin also fell to 17.3% amid weaker pricing, cost inflation, and increased incentives.

Barratt Redrow Stock Up 11.7%

Barratt Redrow stock traded up GBX 32.40 during mid-day trading on Wednesday, hitting GBX 308.80. 12,011,743 shares of the stock were exchanged, compared to its average volume of 36,625,148. The stock has a market capitalization of £4.28 billion, a price-to-earnings ratio of 20.72 and a beta of 1.37. Barratt Redrow has a 12 month low of GBX 235.40 and a 12 month high of GBX 410.29. The firm’s fifty day simple moving average is GBX 302.26 and its two-hundred day simple moving average is GBX 281.63.

Insider Activity at Barratt Redrow

In other news, insider Geeta Nanda acquired 1,701 shares of the firm’s stock in a transaction dated Wednesday, July 22nd. The stock was bought at an average cost of GBX 294 per share, for a total transaction of £5,000.94. Corporate insiders own 0.31% of the company’s stock.

Analyst Upgrades and Downgrades

BTRW has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Barratt Redrow from GBX 454 to GBX 366 and set a “buy” rating for the company in a research report on Tuesday, June 23rd. Berenberg Bank reiterated a “buy” rating and issued a GBX 348 price target on shares of Barratt Redrow in a research note on Thursday, July 16th. Jefferies Financial Group reissued a “hold” rating and set a GBX 303 price objective on shares of Barratt Redrow in a report on Wednesday, August 12th. JPMorgan Chase & Co. lowered their target price on Barratt Redrow from GBX 520 to GBX 350 and set an “overweight” rating for the company in a report on Tuesday, June 16th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a GBX 350 target price on shares of Barratt Redrow in a research report on Thursday, July 16th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of GBX 373.10.

Barratt Redrow Company Profile

Barratt Redrow plc is an exceptional FTSE 100 listed UK home builder, building the homes the country needs, and dedicated to quality, service and sustainability.

Together, we offer a range of highly respected and complementary brands, Barratt, David Wilson and Redrow.

We put our customers at the heart of everything we do, through our focus on:

✅ Quality – We deliver high-quality, energy-efficient homes which are built to the highest standards. Together, we have held more NHBC Pride in the Job Awards than any other housebuilder, for 20 years.