Bellway shares surge as homebuilder announces £150m buyback, strong FY results

Investing.com -- Bellway PLC (LON:BWY) shares jumped 4.8% after the national homebuilder announced a £150 million share buyback program alongside its full-year results, signaling confidence despite challenging market conditions.

The company reported a 14.3% increase in housing completions to 8,749 homes for the year ended July 31, 2025, driving revenue up 16.9% to £2.78 billion. Underlying operating profit rose 27.5% to £303.5 million, with the underlying operating margin improving to 10.9% from 10.0% a year earlier.

Bellway’s board recommended a final dividend of 49.0p per share, bringing the total dividend to 70.0p, a 29.6% increase from the previous year.

" Bellway has delivered a good performance in FY25 with double-digit growth in volume output and profits, and our sharper focus on balance sheet efficiency is reflected by the £150m share buyback programme announced today," said Jason Honeyman, Chief Executive.

The company reported a private reservation rate per outlet per week of 0.57, up 11.8% from the previous year. However, recent trading has been softer, with the reservation rate at 0.48 in the ten weeks since August 1, compared to 0.49 in the same period last year.

Despite near-term market challenges, Bellway remains optimistic about future growth. The company is targeting volume output of around 9,200 homes in FY26 and aims to reach approximately 10,000 homes by FY28.

"While we face some near-term market challenges, we have a high-quality land bank, strong balance sheet and the operational capacity to capitalise on the positive long-term fundamentals of our industry," Honeyman added.

The company ended the year with net cash of £41.8 million, compared to net debt of £10.5 million a year earlier, reflecting strong cash generation during the period.

Bellway maintained its position as a five-star homebuilder for the ninth consecutive year, with 95.4% of customers saying they would recommend the company to a friend.