Barratt Redrow has described its full-year performance as "strong" in its latest trading update, with its profit before tax set to reach market expectations.

In the year to 29 June 2025, its number of total home completions reached 16,565, slightly down from 17,972 in the previous year.

The housebuilder’s profit before tax is set to total around £583m, while its net cash position is expected to reach £772m.

The firm, which merged last year in a £2.5bn deal, was able to deliver £69m in cost savings in the past year, adding that it is aiming to reach £100m in annual savings in future years.

Chief executive at Barratt Redrow, David Thomas, said: "Against a challenging market backdrop, we have delivered a solid performance this year. Our adjusted profits are in line with market expectations, despite home completions being slightly below our guided range, mainly due to the impact of fewer international and investor completions than expected in our London businesses.

"We are already seeing tangible benefits from the Redrow acquisition, with cost synergies being delivered ahead of schedule, a new divisional structure in place and revenue synergies progressing well. Although demand during the year has been impacted by consumer caution and mortgage rates not falling as quickly as hoped, there remains a long-term structural under-supply of housing in this country."

Looking ahead to the 2026 financial year, the firm said that homebuyer confidence remains fragile and mortgage rates remain high compared to recent years.

However, there remains a long-term under-supply of new homes and it is encouraged by the Government’s focus on housebuilding.

As a result, Barratt Redrow expects its total home completions to reach between 17,200 and 17,800, reflecting current market conditions and a revised expectation of broadly flat average sales outlets.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, concluded: "Barratt Redrow’s been ticking along nicely over the last year, despite some hurdles such as increased stamp duty and slow changes to increasing planning approvals.

"Looking ahead, new building safety charges are set to bring a £98m hit to profits this year, so pre-tax profits are likely to fall around 10% short of current market expectations of £712m. This disappointment has seen the share price fall by double digits in early trading.

"Despite this, the balance sheet remains in great shape. Structuring the acquisition of Redrow as a share offer means there’s still plenty of cash on the balance sheet. That means the ongoing share buyback programme of at least £100m annually and prospective dividend yield of 4.3% looks to be on solid ground."

Barratt Redrow will announce its full-year results on 17 September.

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