The housebuilder said management actions were under way to “strengthen cost control and operational efficiency”. These include greater group-wide standardisation, more flexible procurement agreements with suppliers and a broader review of overheads.

Despite a 13.6% rise in revenue to £3,162.2m, Bellway’s underlying operating margin fell to 10.1% from 10.9% a year earlier. Underlying operating profit still rose 5.6% to £320.6m, and underlying profit before tax grew 5.7% to £305.7m.

The company expects the margin to fall again in FY27. It cited lower completions, ongoing build cost inflation, elevated sales incentives and a higher share of bulk sales as outweighing the benefits of its land bank and cost efficiencies.

Capital discipline helped drive a 36% jump in adjusted operating cashflow to £868.6m. Bellway ended the year with net cash of £157.7m, up from £41.8m, and adjusted gearing of just 3.0%.

The total dividend rises 7.1% to 75.0p per share. A £150m share buyback for FY27 is expected to take total dividends and buybacks across FY26 and FY27 to around £450m. The first £50m tranche, launched in September, has been increased to £75m.

Chief Executive Jason Honeyman said the group’s priorities were “allocating capital with discipline, maintaining a strong balance sheet with low gearing and investing selectively in land to support future growth.”

In January, Bellway opened its new timber frame facility, Bellway Home Space, which began supplying frames to its divisions in the second half of FY26.

Demand remains constrained by economic uncertainty and affordability pressures, with mortgage rates above prior-year levels. Private reservations per outlet per week have run at 0.50 since 1 August, against 0.51 a year earlier. The forward order book stands at 4,981 homes worth £1,437.6m, down from 5,285 homes worth £1,526.9m.

Bellway is targeting 9,000 to 9,400 completions in FY27, down from 9,695, with an average selling price of around £325,000.

The group said its selective land buying, better capital efficiency and faster exit from lower-margin sites provide “a strong platform for margin and returns improvement beyond FY27”. It also welcomed the Government’s proposed Your First Home scheme as a potential boost for first-time buyers.

Jason Honeyman, chief executive, said: “Bellway has delivered a robust performance, growing both volume output and profits despite ongoing challenges across the housing market. Our continued focus on operational improvement and capital efficiency has enhanced resilience, driven a significant 36% increase in adjusted operating cashflow and supported higher shareholder returns.

“Against a backdrop of near-term economic uncertainty, our priorities remain clear: allocating capital with discipline, maintaining a strong balance sheet with low gearing and investing selectively in land to support future growth. The £150m FY27 share buyback programme announced today is expected to take total dividends and share buybacks across FY26 and FY27 to c.£450m, reflecting our financial strength, cash generation and commitment to delivering long-term shareholder value.

“The UK continues to face a substantial shortage of new homes, while affordability remains a major barrier for many prospective buyers. We therefore welcome the Government’s proposed Your First Home scheme, which has the potential to provide significant support for first-time buyers. We look forward to further detail on the scheme and to engaging with Government on its design and implementation. Bellway has the financial strength, operational capability and land bank to respond as market conditions improve and increase the delivery of much-needed new homes over the medium term.”