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 9% increase in net reservation rate, supported by new partnership agreements and operational restructuring.

• Project Transform restructuring completed, moving to a single division with regional leadership, targeting annualised cost savings of £1.1m and further exceptional costs in H2.

• Gleeson Land completed three site sales, submitted a record 15 planning applications, and secured four new promotion agreements covering 1,210 plots.

• Forward order book for Homes up 64% to 978 plots, with strong growth in partnerships and open market forward orders.

• Part exchange offer launched, generating strong initial interest and expected to improve sales rates.

Financial highlights

• Group revenue rose 9.6% year-over-year to £173.1m, with both divisions contributing to growth.

• Operating profit before exceptionals fell 17.6% to £4.2m; profit before tax and exceptionals down 44.4% to £2.0m; net profit after tax was £1.3m.

• Gleeson Homes revenue grew 7.7% to £168.6m, gross margin on home sales at 19.8%, and operating margin declined to 4.1%.

• Overhead costs increased by £3.4m, mainly due to pay inflation, higher National Insurance, and IT investments.

• Net debt increased to £22.5m (31 Dec 2024: £18.1m); interim dividend maintained at 4.0p per share.

Outlook and guidance

• Market outlook remains uncertain; open market sales rate improved but below prior year, requiring sustained momentum for margin recovery.

• Current market expectations are achievable, but risks of a lower outturn remain due to market fragility; full-year guidance to be provided in April 2026.

• Project Transform expected to deliver annualised cost savings of £1.1m; targeting 10 net new site openings annually by FY 2027 and 20% of business from partnerships.