The Berkeley Group (LON:BKG) Releases Quarterly Earnings Results

The Berkeley Group (LON:BKG) announced its earnings results on Wednesday. The company reported GBX 331.60 EPS for the quarter, Digital Look Earnings reports. The Berkeley Group had a return on equity of 10.20% and a net margin of 15.29%.The business had revenue of GBX 238.33 billion during the quarter.

Here are the key takeaways from The Berkeley Group’s conference call:

• Berkeley delivered in-line FY2026 results, with pre-tax profit of GBP 451 million and net asset value per share up 9% to GBP 39.17, while maintaining a strong balance sheet and GBP 363 million of net cash.
• Sales conditions were soft as transactions were hurt by Budget-related uncertainty, geopolitical tension, and cautious buyers, leaving sales about 15% below recent run-rate levels.
• Management is prioritizing cash generation and capital discipline over short-term profit, with no current investment in new land sites and a focus on optimizing existing holdings, controlling WIP, and supporting share buybacks.
• Planning progress added significant land value, including new consents and master plans at several sites, with about GBP 300 million of value added to gross profit from land holdings during the year.
• Berkeley Living is scaling up successfully, with early lettings ahead of expectations, rents above forecast, and six developments expected to be income stabilized by FY2028 for an initial portfolio of 1,122 homes.

The Berkeley Group Stock Performance

Shares of LON:BKG opened at GBX 3,660 on Wednesday. The Berkeley Group has a twelve month low of GBX 2,796 and a twelve month high of GBX 4,442. The business has a fifty day moving average of GBX 3,373.53 and a 200-day moving average of GBX 3,712.50. The firm has a market cap of £3.39 billion, a PE ratio of 9.96, a price-to-earnings-growth ratio of -0.87 and a beta of 1.19. The company has a debt-to-equity ratio of 18.94, a quick ratio of 0.57 and a current ratio of 3.54.

Insiders Place Their Bets

In other The Berkeley Group news, insider Robert C. G. Perrins purchased 7,000 shares of the stock in a transaction dated Thursday, April 30th. The stock was bought at an average price of GBX 3,168 per share, for a total transaction of £221,760. Also, insider Rachel Downey purchased 575 shares of the business’s stock in a transaction dated Wednesday, April 15th. The stock was bought at an average cost of GBX 3,449 per share, for a total transaction of £19,831.75. Insiders acquired a total of 14,575 shares of company stock worth $46,874,175 over the last quarter. Corporate insiders own 9.98% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on BKG shares. Jefferies Financial Group cut their target price on shares of The Berkeley Group from GBX 4,598 to GBX 4,531 and set a “buy” rating on the stock in a research note on Tuesday, May 5th. JPMorgan Chase & Co. reduced their price target on The Berkeley Group from GBX 5,000 to GBX 4,200 and set an “overweight” rating for the company in a report on Thursday, April 2nd. Berenberg Bank cut their price objective on shares of The Berkeley Group from GBX 4,500 to GBX 4,000 and set a “buy” rating on the stock in a research report on Thursday, April 2nd. Royal Bank Of Canada raised shares of The Berkeley Group to a “sector perform” rating and set a GBX 3,900 target price for the company in a research report on Wednesday, April 1st. Finally, Bank of America upgraded shares of The Berkeley Group to a “buy” rating and dropped their price target for the stock from GBX 4,080 to GBX 4,020 in a research note on Monday, March 30th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of GBX 4,190.

The Berkeley Group Company Profile

At Berkeley Group we build homes and neighbourhoods across London, Birmingham and the South of England.

Our passion and purpose is to build quality homes, strengthen communities and make a positive difference to people’s lives. We use our sustained commercial success to make valuable and enduring contributions that benefit all our stakeholders.

We specialise in brownfield regeneration, working closely with local communities and councils to revive underused land and create homes where they are needed most.