Bellway (LON:BWY) Issues Quarterly Earnings Results

Bellway (LON:BWY) released its quarterly earnings data on Tuesday. The company reported GBX 91.20 earnings per share for the quarter, Digital Look Earnings reports. Bellway had a net margin of 5.66% and a return on equity of 4.45%.

Here are the key takeaways from Bellway’s conference call:

• Delivering full-year guidance underpinned by strong cash plans — management targets FY2026 underlying operating profit of £320–330m, volumes of 9,300–9,500 homes, an ASP around £325k and adjusted operating cash flow of £750–800m.
• Sales momentum has improved since the year start with a recent private sales rate of 0.66 (first six weeks) and regional strength in the North/Midlands (~0.75), while incentives are at c.5% and management says it does not plan to raise them.
• Margin pressure and inflation risks — H1 underlying operating margin fell 50bp to 10.5% (gross margin ~16.2%), driven by higher incentive use, lack of house price inflation, embedded build-cost inflation and potential further cost risk from the Middle East conflict.
• Balance sheet and capital allocation remain supportive — a large landbank of 94,000 plots, low adjusted gearing (~10.3%), modest net debt of £72m at H1, a completed ~£64m of a £150m buyback and a clear focus on WIP efficiency to drive cash generation.
• Building-safety position is well provided but uncertain — a provision of £507m with budgeted FY26 spend >£150m (partly dependent on ~£90m of government reimbursements) and £81m of recoveries recognized to date.

Bellway Stock Down 11.2%

Shares of LON:BWY opened at GBX 1,899 on Tuesday. Bellway has a 1-year low of GBX 1,899 and a 1-year high of GBX 2,998. The company has a debt-to-equity ratio of 6.20, a current ratio of 4.77 and a quick ratio of 0.50. The stock has a market cap of £2.22 billion, a P/E ratio of 14.41, a P/E/G ratio of 3.40 and a beta of 1.22. The firm has a fifty day moving average price of GBX 2,616.01 and a 200 day moving average price of GBX 2,609.05.

Analysts Set New Price Targets

Several equities research analysts recently commented on BWY shares. JPMorgan Chase & Co. lifted their price target on shares of Bellway from GBX 3,280 to GBX 3,820 and gave the stock an “overweight” rating in a research note on Thursday, December 4th. The Goldman Sachs Group began coverage on shares of Bellway in a research note on Monday, November 24th. They issued a “neutral” rating and a GBX 2,844 price objective for the company. Jefferies Financial Group dropped their price objective on Bellway from GBX 3,476 to GBX 3,461 and set a “buy” rating on the stock in a report on Monday, January 19th. Finally, Citigroup boosted their target price on Bellway from GBX 3,090 to GBX 3,100 and gave the company a “buy” rating in a report on Monday, December 8th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 3,237.50.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.