MJ Gleeson (GLE) H1 2026 earnings summary

Executive summary

• Delivered a robust first-half performance in a subdued market, with 848 homes sold (up 5.9% year-over-year), revenue up 9.6%, and a strong forward order book supported by new partnership agreements and operational restructuring.

• Net reservation rate on open-market sales increased 9% to 0.48 per site/week; partnerships delivered first homes and gained momentum.

• Project Transform restructuring completed, targeting annualised cost savings of £1.1m and further exceptional costs expected in H2.

• Gleeson Land completed three site sales, submitted a record 15 planning applications, and secured planning on the full-year pipeline.

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 (excluding exceptionals) was £2.0m; basic EPS down 43.8% to 2.7p.

• Gleeson Homes revenue up 7.7% to £168.6m, gross margin on home sales at 19.8%.

• Overheads increased by £3.4m due to pay inflation, higher NI, IT investment, and bonus accruals.

• Interim dividend maintained at 4.0p per share; dividend cover at 2.6x.

Outlook and guidance

• Market outlook remains uncertain; open market sales rate improved to 0.55% but remains below last year’s 0.79%.

• Margins remain under pressure from build cost inflation, pricing pressure, and regulatory/tax headwinds.

• Guidance for the year is achievable but highly dependent on Spring selling season and market confidence; update promised in April 2026.

• Targeting 10 net new site openings annually by FY 2027.