Barratt Redrow revenue jumps 34% as profit surges 61% in 2025 results

Investing.com -- Barratt Redrow on Wednesday reported a sharp rise in revenue and profit for the year ending June 29, 2025, as the acquisition of Redrow boosted completions and supported growth in a subdued housing market.

The UK’s largest housebuilder’s revenue climbed 33.8% to £5.58 billion from £4.17 billion a year earlier. Statutory profit before tax increased 60.5% to £273.7 million, up from £170.5 million. 

Adjusted profit before tax, excluding purchase price allocation related to the Redrow deal, was £591.6 million, compared with £385 million a year earlier and slightly ahead of consensus expectations of £582.8 million.

Completions totaled 16,565 homes, an 18.3% increase from 14,004 in 2024. “We have delivered a solid performance in a tough market, with adjusted profits ahead of expectations despite home completions coming in slightly below our guided range,” Chief executive David Thomas said in a statement.

The company declared a dividend of 17.6p per share, up 8.6% from 16.2p. A £50 million share buyback was completed in the second half of the year, and an additional £100 million program is underway for fiscal 2026. Net cash stood at £772.6 million, down 11% from £868.5 million a year earlier.

Cost synergies from the Redrow integration reached £69 million, ahead of the company’s initial target, with £20 million reflected in 2025 results. 

A further £45 million of reductions are expected in 2026. Thomas said the Redrow deal was “transformative for the Group” and that integration was now “largely complete.”

Forward sales as of Aug. 24 stood at 10,350 homes valued at £3.14 billion, compared with 10,398 homes worth £3.02 billion at the same point last year. 

The company forecast completions of 17,200 to 17,800 homes in fiscal 2026, including about 600 joint venture completions, assuming a normal autumn selling season.

Adjusted basic earnings per share fell 9.9% to 30.8p from 28.3p, while statutory earnings per share rose 15.3% to 13.6p. Return on capital employed slipped to 9% from 9.5% a year earlier. Gross margin increased to 14.1% from 12.2%.

The company said it had agreed to pay £29 million as part of a £100 million collective contribution from seven housebuilders to affordable housing programs, under voluntary commitments made to the Competition and Markets Authority, which is investigating the sector.

Chair Caroline Silver said the past year had been “an important and exciting one,” adding that despite integration challenges, colleagues “ ensured that we continue to lead the industry on build quality, customer service and sustainability, as demonstrated by accreditation from our customers and independent third parties.”

Operationally, six divisional offices were closed, with three more in the process of closing, and IT systems integration is advancing. 

The group highlighted joint ventures including the MADE Partnership with Homes England and Lloyds Banking Group, and a West London project with Transport for London expected to deliver more than 4,000 homes over the next decade.