MJ Gleeson (GLE) H2 2026 earnings summary

Executive summary

• Delivered a robust performance in a challenging economic environment, completing operational restructuring and strengthening the business foundation.

• Revenue grew 12.1% year-over-year to £410 million, but group operating profit declined due to site delays in Land and margin compression in Homes.

• Completed Project Transform, strengthening leadership, decentralizing operations, and reforming land buying and portfolio management.

• Focused on efficiency and strategic initiatives to mitigate margin pressure amid subdued market conditions.

• Gleeson Homes saw increased home sales and improved forward order book, while Gleeson Land faced delays and a cautious market.

Financial highlights

• Group revenue rose 12.1% to £410.0m, with Gleeson Homes revenue up 14.9% to £400.0m.

• Adjusted profit before tax fell to £10.8 million; reported profit before tax was a loss of £2.7m due to £13.6m exceptional items.

• Basic EPS was -3.3p after exceptional costs; adjusted EPS was £0.141.

• Operating margin declined 140 bps to 5.0% due to build cost inflation and increased multi-unit sales.

• Total dividend for the year set at £0.05 per share, covered 2.8x by earnings.

Outlook and guidance

• Board expects FY 2027 results in line with current market expectations, despite subdued market conditions.

• Site opening profile expected to remain slow into FY 2028 due to planning delays, portfolio rationalization, and cautious balance sheet management.

• Partnerships expected to grow as a share of sales, targeting 20% over time.

• Focus remains on operational efficiency and strategic initiatives to enhance performance.

• Bulk sales likely to remain at similar levels in the near term.