MJ Gleeson (GLE) H2 2025 earnings summary

Executive summary

• Group revenue grew 5.9% to £365.8m, driven by both divisions, despite margin compression and a challenging market.

• Net reservation rates improved 20% year-over-year, with a strong forward order book of 845 units (£159m), and order book up 51%.

• Project Transform delivered operational restructuring, tighter management, improved process discipline, and leadership changes.

• Gleeson Land delivered a strong year with seven transactions and a growing, higher-quality portfolio.

• 1,793 homes sold, up 1.2% year-over-year, with a 4.3% increase in average selling price to £193,600.

Financial highlights

• Group operating profit fell to £25.4m, with PBT down 11.7% to £21.9m, and EPS down 12.7% to 28.9p.

• Gleeson Homes revenue rose 5.8% to £348.2m, but operating profit before exceptionals dropped 26.4% to £22.3m due to margin pressures.

• Gleeson Land operating profit more than tripled to £7m, with ROCE at 17.4% and portfolio expanded to 77 sites.

• Group overheads remained flat at £3.9m; £1.3m in exceptional restructuring costs incurred.

• Final dividend of 7.0p per share, total 11.0p per share, unchanged and covered 2.6x by earnings.

Outlook and guidance

• FY2026 expected to be broadly in line with FY2025, with significant growth anticipated from FY2027 as the land pipeline matures.

• Confident in achieving at least 3,000 homes sold per year in the medium term, supported by a robust land pipeline.

• Margin recovery is expected as new sites come online and incentives reduce, with further upside when market confidence returns.

• Planning delays remain a key risk to timing of site openings and land sales.

• Board maintains total dividend at 11.0p per share, with a final dividend of 7.0p.