Barratt Redrow Shares Gain on Solid FY26 Results and £400m Buyback Pledge

Shares in Barratt Redrow (LON: BTRW) rose on Wednesday morning after the housebuilder posted a trading update for the year to 28 June 2026 that beat market expectations and unveiled a significantly expanded shareholder returns programme.

The stock hit a high of 295p before pulling back to around 285.1p, up 2.5% on the day.

The FTSE 100 group completed 17,667 homes in FY26, up 5% year-on-year and at the top end of guidance, with adjusted pre-tax profit in line with analyst forecasts of around £559.5m. The company also reported a robust balance sheet, ending the year with net cash of roughly £772m.

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The standout news for investors was a shift in capital allocation strategy. Barratt Redrow announced it will return £400m to shareholders in FY27, primarily via share buybacks rather than dividends, citing the stock’s steep 36% discount to tangible net asset value as an opportunity to create value. A new £386m buyback programme starts immediately, alongside a nominal 1p ordinary dividend.

Chief Executive David Thomas, who is set to retire and hand over to incoming CEO Dean Banks in September, said the group had delivered a “solid performance in a challenging market,” pointing to the successful integration of Redrow and the continued cost synergies of £53m delivered in FY26.

Looking ahead, the company guided FY27 completions of between 17,700 and 18,200 homes, though it trimmed its average sales outlet guidance to around 415 amid subdued demand and planning delays. Build cost inflation is expected to rise to 3-4% next year.

Investors welcomed the combination of resilient operational performance and the enlarged buyback, sending shares higher in early trading as the market digested the improved capital returns outlook.