Barratt Redrow (LON:BTRW) Releases Earnings Results

Barratt Redrow (LON:BTRW) posted its quarterly earnings results on Wednesday. The company reported GBX 26.10 EPS for the quarter, Digital Look Earnings reports. Barratt Redrow had a net margin of 4.02% and a return on equity of 3.13%.

Here are the key takeaways from Barratt Redrow’s conference call:

• FY 2027 completion guidance was maintained at 17,500–17,900 homes, supported by resilient underlying reservations and a 6% increase in the forward sales position. However, average outlet guidance was reduced to approximately 405 because of delays in planning approvals.
• The Redrow integration is complete, with the full £100 million cost-synergy target confirmed. The company expects the annual profit-and-loss contribution from synergies to rise to approximately £95 million in FY 2027, while dual- and triple-branded developments are showing encouraging sales rates.
• Adjusted pre-tax profit fell to £572.8 million, while the adjusted operating margin declined to 9.9% as softer underlying pricing, higher incentives, and build-cost inflation outweighed volume growth. Build-cost inflation is expected to run at 3%–4% in FY 2027.
• The balance sheet strengthened to a £61.4 million net surplus, and the company plans total FY 2027 capital returns of £400 million, including £386 million through share buybacks. Net cash at FY 2027 year-end is expected to be £400 million–£500 million, subject to land activity.
• Legacy building-safety obligations remain a significant cash burden, with a total provision of £1.05 billion and expected direct remediation and fund payments of approximately £300 million in FY 2027 and £450 million in FY 2028. The embedded land-bank gross margin also fell to 17.3% amid weaker pricing, cost inflation, and increased incentives.

Barratt Redrow Stock Performance

Shares of LON:BTRW traded down GBX 8.60 on Friday, hitting GBX 305.70. The company’s stock had a trading volume of 14,195,056 shares, compared to its average volume of 36,342,910. The company has a market capitalization of £4.23 billion, a price-to-earnings ratio of 20.52 and a beta of 1.37. Barratt Redrow has a 12 month low of GBX 235.40 and a 12 month high of GBX 410.29. The stock’s 50-day moving average is GBX 304.12 and its two-hundred day moving average is GBX 281.03.

Analysts Set New Price Targets

BTRW has been the subject of a number of research reports. Jefferies Financial Group restated a “hold” rating and issued a GBX 303 target price on shares of Barratt Redrow in a research note on Wednesday, August 12th. Berenberg Bank reissued a “buy” rating and issued a GBX 348 price target on shares of Barratt Redrow in a report on Thursday, July 16th. Citigroup downgraded Barratt Redrow to a “buy” rating in a research note on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft dropped their target price on Barratt Redrow from GBX 454 to GBX 366 and set a “buy” rating on the stock in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. reduced their price target on shares of Barratt Redrow from GBX 520 to GBX 350 and set an “overweight” rating for the company in a report on Tuesday, June 16th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 373.10.

Insider Activity

In related news, insider Geeta Nanda bought 1,701 shares of the stock in a transaction on Wednesday, July 22nd. The shares were purchased at an average price of GBX 294 per share, with a total value of £5,000.94. Also, insider Katie Bickerstaffe purchased 6,526 shares of the company’s stock in a transaction on Wednesday, September 16th. The shares were bought at an average price of GBX 305 per share, for a total transaction of £19,904.30. Corporate insiders own 0.31% of the company’s stock.

Barratt Redrow Company Profile

Barratt Redrow plc is an exceptional FTSE 100 listed UK home builder, building the homes the country needs, and dedicated to quality, service and sustainability.

Together, we offer a range of highly respected and complementary brands, Barratt, David Wilson and Redrow.

We put our customers at the heart of everything we do, through our focus on:

? Quality – We deliver high-quality, energy-efficient homes which are built to the highest standards. Together, we have held more NHBC Pride in the Job Awards than any other housebuilder, for 20 years.