Bellway P.l.c. · LSE:BWY
Bellway P.l.c — FY2025 Earnings Presentation
40 slides from Bellway P.l.c's earnings presentation, Oct 14, 2025
Slide 1: Results Presentation, Year ended 31 July 2025
Results Presentation Year ended 31 July 2025
Slide 2: Today’s agenda
Today’s agenda 1. Introduction 2. Finance review 3. Capital allocation framework 4. Operating review and outlook 5. Q&A 6. Appendices Unless otherwise stated, all numbers throughout this presentation exclude the Group’s share of its joint ventures. Page 2 - Results presentation for the year ended 31
Slide 3: 1. Introduction
1. Introduction Jason Honeyman Chief Executive Page 3 - Results presentation for the year ended 31 July 2025
Slide 4: Good performance in FY25
Good performance in FY25 Completions Underlying operating Net private sales rate Order book at 31 July (homes) margin per outlet per week (homes) 8,749 10.9% 0.57 5,307 (2024 – 7,654) (2024 – 10.0%) (2024 – 0.51) (2024 – 5,144) Land bank 2 5* homebuilder Underlying ROE 1 Average outlets (plots) 8.2%
Slide 5: 2. Finance review
2. Finance review Shane Doherty Chief Financial Officer Page 5 - Results presentation for the year ended 31 July 2025
Slide 6: Good financial performance
Good financial performance 2025 2024 Mvt Full year highlights Private completions 6,924 5,758 20.3% Social completions 1,825 1,896 (3.7%) Strong growth in volume Total completions 8,749 7,654 14.3% output to 8,749 homes. Average selling price £316,412 £307,909 2.8% Housing revenue £2,768.3m £2,356.7
Slide 7: A strong balance sheet
A strong balance sheet 2025 2024 Mvt Fixed assets £45.5m £30.2m £15.3m Financial strength Investments in joint arrangements £54.1m £57.5m (£3.4m) Inventory £4,838.1m £4,714.8m £123.3m Well-capitalised and asset-backed Land £2,502.9m £2,431.4m £71.5m balance sheet. Work-in-progress £2,335.2m £2,283.4
Slide 8: Improving cash generation
Improving cash generation 750 £521.3m (£41.1m) £638.9m (£472.0m) 650 550 450 £m 350 £303.5m (£144.8m) 250 (£44.6m) 150 (£70.0m) £41.8m 50 (50) (£10.5m) Opening net Underlying Working Land utilised in Increase in site Adjusted Cash land Legacy building Dividend Closing net cash debt at 1 August opera
Slide 9: Building safety
Building safety 2025 2024 2025 2024 Mvt SRT (£482.9m) (£463.6m) (£19.3m) SRT – expense (£50.9m) (£6.1m) Structural defects (£33.5m) (£45.6m) £12.1m SRT – recoveries £0.2m £0.3m Legacy building (£516.4m) (£509.2m) (£7.2m) safety provision SRT – net cost of sales (£50.7m) (£5.8m) Structural defects –
Slide 10: Guidance
Guidance FY26 guidance Volume output Target of around 9,200 completions. Volume mix Social completions expected to represent c.20% of volume output. Overall ASP Around £320k. Administrative expenses1 Expected to be around £170m. Operating margin1 Around 11%. 1 Underlying. Page 10 - Results presentat
Slide 11: 3. Capital allocation framework
3. Capital allocation framework Shane Doherty Chief Financial Officer Page 11 - Results presentation for the year ended 31 July 2025
Slide 12: Clear priorities for capital allocation
Clear priorities for capital allocation Capital allocation framework balances investment for growth with shareholder returns Strong balance sheet Investment for growth Shareholder returns ▪ Efficient capital structure ▪ Strong land bank supports ▪ Maintain ordinary while maintaining low land replace
Slide 13: Efficient capital structure
Efficient capital structure Maintaining a strong balance sheet while Maintaining low gearing driving efficiencies Average FY09-18 Average FY19-25 FY26 onwards Well capitalised balance sheet with total debt 20% facilities of £530m (£130m fully drawn USPP plus £400m bank facilities). 15% 10% Expect mo
Slide 14: Driving improvements in WIP turn
Driving improvements in WIP turn Greater WIP efficiency Driving higher cash generation 2.5 £4,000m Well-positioned to deliver sustained volume growth and higher revenues. 2.0 £3,000m Sharp focus on monetising our well- invested WIP position to support WIP turn (X) 1.5 c.1.8 increased cash generation
Slide 15: Capital efficiency and cash generation
Capital efficiency and cash generation Adjusted operating cashflow conversion* Driving enhanced cash generation for shareholder returns FY23-25 (aggregate) FY26-28 (aggregate) £3,000m Volume growth and focus on capital efficiency £2,500m >2.0x* to drive higher asset turn. £2,000m 1.6x* Increased foc
Slide 16: Value creation for shareholders
Value creation for shareholders Targeting strong volume growth and a significant increase in pre-tax ROE by FY28 Capital efficiency Shareholder returns Remuneration alignment ▪ Clear focus on increasing ▪ Maintain ordinary ▪ Management incentives asset turn and WIP turn dividend cover of 2.5x to be
Slide 17: 4. Operating review and outlook
4. Operating review and outlook Jason Honeyman Chief Executive Page 17 - Results presentation for the year ended 31 July 2025
Slide 18: Trading review and mortgage market
Trading review and mortgage market Private reservations and mortgage interest rates Market backdrop 3% High Average monthly mortgage interest rate (%) Private reservation rate of 0.57 (2024 Private reservations per outlet per week 4% – 0.51) including 0.05 (2024 – 0.02) from bulk sales. (values on a
Slide 19: Current trading and order book
Current trading and order book Ten weeks since 1 August Order book at 5 October (2024: 6 October) Order book units (number) Order book value (£m) Private reservation rate per outlet per week of 0.51 (2024 – 0.60). 6,000 5,285 1,750 5,164 1,526.9 1,449.0 5,000 1,500 Ongoing selective use of bulk sale
Slide 20: Multi-year volume growth
Multi-year volume growth Strong platform to deliver growth Driving volume growth Targeting volume of c.9,200 homes in FY26, with further growth to c.10,000 homes in FY28. Growth can be delivered with a stable market and ongoing disciplined use of bulk sales. Modest outlet expansion over the medium t
Slide 21: Strong land bank to support growth
Strong land bank to support growth 2025 2024 2025 2024 Mvt Land with DPP £1,893.2m £1,861.4m £31.8m Land with DPP 30,544 30,787 Pipeline £534.1m £502.8m £31.3m Pipeline 16,600 18,100 Strategic £75.6m £67.2m £8.4m Total land value £2,502.9m £2,431.4m £71.5m Bellway owned and controlled 47,144 48,887
Slide 22: Outlets and planning
Outlets and planning Good visibility on outlet openings Planning backdrop Opened 56 outlets in FY25. Housebuilding should benefit from Government’s planning reforms in the years ahead. Good visibility on outlets for FY26 and FY27, with limited planning risk. 100% of plots owned with DPP for FY26 and
Slide 23: Production and cost control
Production and cost control Focus on margin recovery and efficiency Build cost inflation running in low single digits. Robust cost controls. Driving procurement savings through increased standardisation. ‘Bellway Home Space’ timber frame manufacturing facility progressing as planned. On track to beg
Slide 24: Outlook
Outlook Well-positioned to drive multi-year growth in volume and returns FY26 volume Target of around 9,200 homes. FY28 volume Targeting further growth to around 10,000 homes. Driving efficiencies Rigorous focus on improving returns and increasing cash generation. Increasing returns Refreshed capita
Slide 25: 5. Q&A
5. Q&A Ridley’s Orchard Suffolk Page 25 - Results presentation for the year ended 31 July 2025
Slide 26: 6. Appendices
6. Appendices 1. Income statement 2. Net finance expenses 3. Housing revenue 4. Reservations 5. Product analysis 6. Completions 7. Order book at 31 July 8. Land with DPP 9. Land investment 10. Strategic land 11. Land creditors 12. Land bank glossary Page 26 - Results presentation for the year ended
Slide 27: Appendix 1 – Income statement
Appendix 1 – Income statement 2025 2024 Mvt Adjusting Adjusting Underlying items Total Underlying items Total Homes sold 8,749 - 8,749 7,654 - 7,654 14.3% Average selling price £316,412 - £316,412 £307,909 - £307,909 2.8% Housing revenue £2,768.3m - £2,768.3m £2,356.7m - £2,356.7m 17.5% Other revenu
Slide 28: Appendix 2 – Net finance expenses
Appendix 2 – Net finance expenses 2025 2024 Mvt Net bank interest receivable £0.4m - 100.0% Fixed rate sterling USPP notes (£3.4m) (£3.4m) - Other interest: (£9.9m) (£6.3m) 57.1% Made up of:- Land creditors – IFRS 9 (£14.9m) (£11.1m) 34.2% Lease liabilities – IFRS 16 (£0.8m) (£0.4m) 100.0% Other int
Slide 29: Appendix 3 – Housing revenue
Appendix 3 – Housing revenue Average selling price (‘ASP’) Homes sold (number) 2025 2024 Mvt +0.8% Private Social Total Private Social Total Private Social Total £350k +2.8% Group 6,924 1,825 8,749 5,758 1,896 7,654 20.3% (3.7%) 14.3% £300k £250k £350.4k £347.7k Average selling price (£000) +0.2% £3
Slide 30: Appendix – Reservations
Appendix 4 – Reservations Weekly reservation and cancellation rates 1 Weekly private reservation rate per outlet 2025 2024 Mvt 0.80 0.71 Private 139 124 12.1% 0.70 Number of private reservations per outlet per week 0.64 0.60 Social 32 37 (13.5%) 0.60 0.54 0.54 0.57 0.51 Total 171 161 6.2% 0.50 0.45
Slide 31: Appendix 5 – Product analysis
Appendix 5 – Product analysis Product mix analysis Selling price analysis 2025 2024 2025 2024 London flats Townhouses 1 & 2 bed < £200,000 £200,000 - £300,000 £300,001 - £400,000 Non-London flats 3 bed 4+ bed £400,001 - £500,000 £500,001 - £600,000 > £600,000 Flats Houses Page 31 - Results presentat
Slide 32: Appendix 6 – Completions
Appendix 6 – Completions Homes sold 2025 2024 308 199 2025 3% 3% 1,825 21% 1,896 25% 3,825 3,317 35 44% 43% 0% 34 0% 2024 2,421 28% 335 1,997 211 4% 26% 3% Second time buyers Deposit assisted and first time Other buyers buyers Other second time buyers Unassisted first time buyers Housing Association
Slide 33: Appendix 7 – Order book at 31 July
Appendix 7 – Order book at 31 July 2025 2024 Mvt Private Social Total Private Social Total Private Social Total At 1 August 2,887 2,257 5,144 2,191 2,220 4,411 31.8% 1.7% 16.6% Reservations 7,228 1,684 8,912 6,454 1,933 8,387 12.0% (12.9%) 6.3% Completions (6,924) (1,825) (8,749) (5,758) (1,896) (7,
Slide 34: Appendix 8 - Land with DPP
Appendix 8 - Land with DPP¹ 2025 2024 Average Average Plots Cost Plots Cost plot cost plot cost Land bank At 1 August 30,787 £1,861.4m £60.5k 32,229 £1,913.3m £59.4k Good visibility Net purchases 8,506 £553.1m £65.0k 6,212 £380.0m £61.2k with regards to construction and Sold (8,749) (£521.3m) £59.6k
Slide 35: Appendix 9 – Land investment
Appendix 9 – Land investment Cash land spend and value of new land contracts (£m) 600 500 400 New land contracts 300 567 467 465 472 Contracted to purchase 8,120 200 378 345 owned and controlled plots across 51 sites. 100 - 2023 2024 2025 New land contracts Cash land spend Page 35 - Results presenta
Slide 36: Appendix 10 – Strategic land
Appendix 10 – Strategic land 2025 2024 Positive planning Positive planning 5,511 14,536 plots 7,264 13,196 plots 11% 30% 16% 29% 4,349 9% 3,457 8% 33,264 70% 4,676 2,475 10% 32,304 5% 71% Total: 47,800 plots Total: 45,500 plots Positive planning status Longer-term interests Allocated Longer-term int
Slide 37: Appendix 11 – Land creditors
Appendix 11 – Land creditors Land creditor payment profile 350.0 ▪ Often able to secure a discount 300.0 on land deals in return for making upfront payments. 250.0 £191.3m 200.0 ▪ Seek to defer payments where it £m £337.6m 150.0 is cost effective to do so. £73.0m 100.0 50.0 £73.3m ▪ £264.3m due for
Slide 38: Appendix 12 – Land bank glossary
Appendix 12 – Land bank glossary Owned and controlled plots ▪ Land with DPP: Plots owned or unconditionally contracted by the Group where there is an implementable detailed planning permission. ▪ Pipeline: Plots which are either owned or contracted by the Group, pending an implementable detailed pla
Slide 39: Disclaimer
Disclaimer This presentation is not intended to, and does not constitute or form part of, any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Bellway p.l.c. or any other invitation or inducement to engag
Slide 40: Bellway
Bellway