Bellway (LON:BWY) Issues Quarterly Earnings Results

Bellway (LON:BWY) announced its quarterly earnings data on Tuesday. The company reported GBX 91.20 earnings per share (EPS) 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 11.3%

Shares of LON:BWY opened at GBX 1,896 on Tuesday. The company has a quick ratio of 0.50, a current ratio of 4.77 and a debt-to-equity ratio of 6.20. The company has a market capitalization of £2.21 billion, a P/E ratio of 14.39, a P/E/G ratio of 3.40 and a beta of 1.22. Bellway has a 52-week low of GBX 1,893 and a 52-week high of GBX 2,998. The stock’s fifty day simple moving average is GBX 2,616.01 and its 200-day simple moving average is GBX 2,609.05.

Analyst Upgrades and Downgrades

BWY has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. upped 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 started coverage on shares of Bellway in a research report on Monday, November 24th. They set a “neutral” rating and a GBX 2,844 price target for the company. Citigroup raised their price objective on Bellway from GBX 3,090 to GBX 3,100 and gave the company a “buy” rating in a research note on Monday, December 8th. Finally, Jefferies Financial Group decreased their target price on Bellway from GBX 3,476 to GBX 3,461 and set a “buy” rating on the stock in a research report on Monday, January 19th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company 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.