Bellway Shares Rally as Housing Completions Ahead of Expectations

Bellway (LON:BWY) shares rose on Tuesday after the housebuilder reported a 14.3% increase in annual housing completions, exceeding earlier forecasts.

In a trading update for the year ended July 31, 2025, the company said it  built 8,749 homes, up from 7,654 a year earlier, with the average selling price rising to around £316,000.

Housing revenue grew 17% to more than £2.76 billion, while the underlying operating margin is expected to approach 11%, compared with 10% in 2024.

The private reservation rate per outlet per week increased by 11.8% to 0.57, with forward orders totaling 5,307 homes, valued at £1.52 billion.

Bellway shares rose over 3% in early Tuesday trading around 2,514p per share. The stock is up around 0.7% this year, but down over 10% in the last 12 months.

The company ended the year with net cash of £42 million, compared with £10.5 million of net debt a year earlier. The company also expanded its land bank, contracting to purchase 8,120 plots across 51 sites, up from 4,621 plots in the prior year.

Chief executive Jason Honeyman said Bellway had delivered “a solid performance despite ongoing headwinds” and entered the new financial year “well-positioned to deliver further growth in FY26” if market conditions remain stable.

For the coming year, Bellway aims to lift output to around 9,200 homes, supported by a strong order book and steady outlet numbers. It plans to unveil a refined capital allocation framework with its full-year results on 14 October, targeting increased cash generation and shareholder returns through both dividends and share buybacks.

Bellway, which retained its five-star homebuilder rating for a ninth consecutive year, said government planning reforms could support long-term growth but urged further action to help first-time buyers.