RBC: Barratt Redrow Investors to Look for Signs of Build Cost, House Price Inflation in FY26 Results

09:10 AM EDT, 09/14/2026 (MT Newswires) -- RBC Capital Markets expects Barratt Redrow (BTRW.L) investors to focus on the company's guidance for build cost and house price inflation for the next fiscal year when it releases its full fiscal 2026 results on Sept. 16. "Barratt Redrow's FY26 full year results will largely confirm what we already know: completions of 17,667 and adjusted pre-PPA PBT in line with consensus at ~GBP560m. The real focus is on what comes next: FY27 faces a toxic cocktail of 3-4% build cost inflation, a 1.4% underlying ASP decline in the order book and reduced outlet guidance of ~415. Gross margin recovery is being pushed further to the right. A new CEO joins late September and we have the Budget late October, perhaps both are more important than the forthcoming FY2026 results," analysts wrote in a Monday note. "In FY2027 (we forecast a 12.9% gross margin, c.140bps lower YoY, vs consensus of 14.2%), but the geopolitical outlook remains uncertain and build costs and selling prices look like moving targets." Against this backdrop, the research firm made "minor" changes to its forecasts for fiscal 2026, in line with the guidance provided by the UK homebuilder in July. Adjusted profit before tax and before the impact of purchase price allocation is projected to come in at 566 million pounds sterling for the year. The outperform-rated stock has a price target of 3.50 pounds.