MJ Gleeson (GLE) H1 2026 earnings summary

Executive summary

• Delivered robust performance in a subdued market, with 848 homes completed or sold, up 5.9% year-over-year, and a 9% increase in net reservation rate; revenue for Gleeson Homes up 7.7% to £168.6m.

• Project Transform operational restructure completed its second phase, targeting cost savings, margin improvement, and improved efficiency.

• Gleeson Land completed three site sales, submitted a record 15 planning applications, and secured new promotion agreements.

• Forward order book for Homes grew 64% to 978 plots, supported by new partnership agreements.

Financial highlights

• Group revenue rose 9.6% year-over-year to £173.1m; operating profit before exceptionals fell 17.6% to £4.2m.

• Profit before tax was £2.0m, excluding £300,000 of exceptional costs; basic EPS dropped 43.8% to 2.7p.

• Gleeson Homes gross margin on unit sales at 19.8%, down from 20.6%; gross profit per home sold at £39.4k.

• Overheads increased by £3.4m, driven by pay inflation, higher National Insurance, and IT investment.

• Net debt increased to £22.5m, with cash outflows from higher inventories and investment in new sites.

• Interim dividend maintained at 4.0p per share.

Outlook and guidance

• Open market sales rate improved but remains below last year; further improvement and sustainability needed.

• Margins remain under pressure as build cost inflation outpaces selling price increases; incentives remain high at 4.5%.

• Guidance for the year is achievable but subject to market conditions; full-year update in April 2026.

• Full-year outlook depends on a strong Spring selling season and further recovery in demand.