Bellway Shares Surge On Robust H1 Performance, Sees ‘Clear Signs’ of Improving Demand

Bellway (LON:BWY) shares jumped more than 5% on Tuesday morning after the company issued a trading update for the six months ended January 31, 2026, showcasing resilience with increased housing completions and a rising average selling price, despite challenging market conditions.

The company is on track to meet its full-year volume output target.

Headline Numbers:

• Housing Completions: Rose to 4,702 homes, up from 4,577 in 2025.
• Average Selling Price: Increased to approximately £322,000, compared to £310,581 in 2025.
• Forward Order Book: Comprised 4,442 homes valued at £1,241.6 million, down from 4,726 homes valued at £1,311.5 million in 2025.

Bellway's performance reflects a 2.7% increase in total housing completions, driven by a higher average selling price and a stable proportion of private completions. Housing revenue also saw a boost, increasing by over 6% to £1.51 billion. The company's strategic land bank and disciplined land acquisition approach have been instrumental in supporting its growth plans.

Shareholder value is being enhanced through a £150 million share buyback program, with 1.76 million shares repurchased at a cost of approximately £48 million during the period. The company maintains a sustainable ordinary dividend policy, with expectations to maintain underlying dividend cover for the full financial year at around 2.5 times.

Driver Breakdown:

• Geographic and Mix Changes: Shift in sales mix contributed to the increase in average selling price.
• Outlet Opening Programme: Strategic expansion with new outlets supports volume growth.
• Land Bank Strength: High-quality land reserves enable long-term growth.

CEO Jason Honeyman commented, “Bellway has delivered a robust first half performance in a challenging market…I remain confident that we can drive increased cash generation and shareholder returns in FY26 and beyond.”

Bellway's financial position remains strong, with modest period-end net debt and low adjusted gearing, indicating efficient capital management. The company's focus on a disciplined approach to land acquisition and strategic land bank development further strengthens its growth prospects.

Early signs of improving customer demand in the spring selling season, coupled with a strong outlet opening program, support the company's confidence in achieving its full-year volume output target of around 9,200 homes. The full year average selling price is expected to be around £320,000 with an underlying operating margin of around 11.0%.