British housebuilder Bellway Plc (BWY.L) on Tuesday reported positive trading in the four months to May 29, and maintained fiscal 2026 profit target as its forward order book helped offset weaker customer demand and rising build costs.
Beyond the current financial year, the firm said its outlook remains uncertain due to geopolitical tensions and a less predictable domestic political environment.
On the LSE, shares of Bellway were gaining 2.62 percent, changing hands at 1,801.00 pence.
In its trading update for the period from February 1 to May 29, Bellway said it continues to perform robustly in an increasingly challenging market. In the early part of the spring selling season, trading showed a marked improvement compared to autumn 2025.
Meanwhile, customer demand has moderated in recent weeks in April and May in response to the recent rise in mortgage rates, after a positive start to the spring selling season.
Reservation rates fell in April and May following a stronger start to the spring selling season. The private reservation rate dropped 6.2 percent to an average of 151 per week, down from 161 a year earlier. Incentive use averaged around 5 percent.
For fiscal 2026, the company said it remains on track to deliver underlying operating profit within the previously guided range of 320 million pounds to 330 million pounds. It also reiterated volume output guidance of 9,300 to 9,500 homes for the year.
The group contracted to buy 6,744 plots across 24 sites since August 1, 2025, with a total contract value of 363 million pounds. Its strategic land bank stood at around 47,000 plots. Forward order book comprised 5,345 homes worth 1.57 billion pounds at May 29, down from 5,759 homes valued at 1.65 billion pounds a year earlier.
The group flagged "renewed upward pressure" on building material costs due to higher fuel and energy prices, with some suppliers introducing surcharges. Bellway said it will have better visibility on overall build cost inflation for fiscal 2027 when it reports later in the year.
Bellway traded from an average of 233 outlets in the period and plans to open over 40 new outlets in the second half.
Bellway is due to report full-year results on August 11.
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