MJ Gleeson (LON:GLE) Issues Earnings Results

Key Points

• Challenging market conditions pressured performance: MJ Gleeson’s net reservation rate fell to 0.44, while selling-price growth remained near 1% and build-cost inflation stayed at 3%–4%.
• Adjusted profit before tax declined to £10.8 million due to margin compression and delayed land transactions, prompting a reduction in the proposed total dividend to 5p per share.
• Management highlighted operational improvements and financial strength: Project Transform improved customer satisfaction, partnerships delivered 16% of Homes volumes, and net borrowings remained low at £2.6 million, though planning delays are expected to limit site openings through FY2027 and likely FY2028.

MJ Gleeson (LON:GLE - Get Free Report) issued its earnings results on Tuesday. The company reported GBX 14.09 earnings per share (EPS) for the quarter, Digital Look Earnings reports. MJ Gleeson had a net margin of 3.76% and a return on equity of 4.67%.

Here are the key takeaways from MJ Gleeson's conference call:

• Market conditions remain difficult: Homes’ net reservation rate was just 0.51, falling to 0.44 in the nine weeks to the latest weekend, while selling-price growth was only about 1% and build-cost inflation remained around 3%–4%.
• Group adjusted profit before tax declined to £10.8 million, reflecting margin compression in Homes and delayed land transactions; the proposed total dividend was reduced to 5p per share.
• Management said Project Transform has materially strengthened Gleeson Homes through a regional restructure, tighter land-buying controls and portfolio rationalization. Customer satisfaction improved to four stars in 2025, with the business currently tracking at five stars for 2026.
• Partnerships gained momentum, contributing 320 completions, or 16% of Homes volumes, with management encouraged by increased interest following government funding announcements and targeting more profitable golden-brick and forward-funded arrangements.
• The balance sheet remains strong, with only £2.6 million of net borrowings and low land creditors, while the Land pipeline was expanded through new promotion agreements and planning applications. However, slow planning, developer caution and a delayed major sale mean site openings are expected to remain subdued through FY2027 and likely FY2028.

MJ Gleeson Price Performance

MJ Gleeson stock opened at GBX 248.90 on Tuesday. The company has a current ratio of 3.87, a quick ratio of 0.89 and a debt-to-equity ratio of 7.86. The firm has a market capitalization of £145.20 million, a P/E ratio of 10.15 and a beta of 0.62. The business has a 50-day moving average of GBX 267.19 and a 200-day moving average of GBX 263.80. MJ Gleeson has a 1 year low of GBX 214.09 and a 1 year high of GBX 435.

Analyst Upgrades and Downgrades

Separately, Berenberg Bank cut their price objective on shares of MJ Gleeson from GBX 345 to GBX 310 and set a "buy" rating on the stock in a report on Thursday, June 11th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of GBX 310.

MJ Gleeson Company Profile

MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land. Gleeson Homes, under the banner of "Building Homes. Changing Lives" builds high-quality affordable homes across the Midlands and North of England. To meet customer demand, and without compromising affordability, the range of homes available extends from one-bed apartments to five-bedroom houses. With a two-bedroom home available from £100,000, a key objective is to ensure that on all of our developments, a meaningful proportion of homes are affordable to a couple earning the National Living Wage.