MJ Gleeson (LON:GLE) Posts Earnings Results

MJ Gleeson (LON:GLE) announced its quarterly earnings data on Tuesday. The company reported GBX 14.09 EPS for the quarter, Digital Look Earnings reports. MJ Gleeson had a net margin of 3.76% and a return on equity of 4.67%.

Here are the key takeaways from MJ Gleeson’s conference call:

• Market conditions remain difficult: Homes’ net reservation rate was just 0.51, falling to 0.44 in the nine weeks to the latest weekend, while selling-price growth was only about 1% and build-cost inflation remained around 3%–4%.
• Group adjusted profit before tax declined to £10.8 million, reflecting margin compression in Homes and delayed land transactions; the proposed total dividend was reduced to 5p per share.
• Management said Project Transform has materially strengthened Gleeson Homes through a regional restructure, tighter land-buying controls and portfolio rationalization. Customer satisfaction improved to four stars in 2025, with the business currently tracking at five stars for 2026.
• Partnerships gained momentum, contributing 320 completions, or 16% of Homes volumes, with management encouraged by increased interest following government funding announcements and targeting more profitable golden-brick and forward-funded arrangements.
• The balance sheet remains strong, with only £2.6 million of net borrowings and low land creditors, while the Land pipeline was expanded through new promotion agreements and planning applications. However, slow planning, developer caution and a delayed major sale mean site openings are expected to remain subdued through FY2027 and likely FY2028.

MJ Gleeson Price Performance

Shares of GLE opened at GBX 247.78 on Wednesday. The company’s fifty day simple moving average is GBX 267.37 and its 200 day simple moving average is GBX 263.12. MJ Gleeson has a 1-year low of GBX 214.09 and a 1-year high of GBX 435. The company has a market cap of £144.55 million, a price-to-earnings ratio of 10.10 and a beta of 0.62. The company has a current ratio of 3.87, a quick ratio of 0.89 and a debt-to-equity ratio of 7.86.

Trending Headlines about MJ Gleeson

Here are the key news stories impacting MJ Gleeson this week:

• Positive Sentiment: FY2026 revenue increased 12.1%, indicating that MJ Gleeson continued to grow activity despite challenging market conditions. MJ Gleeson FY26 Revenue Rises 12.1% as Adjusted Profit Declines
• Neutral Sentiment: Project Transform is reshaping the business as management adjusts operations to a subdued housing market. The initiative could improve efficiency over time, but its near-term financial benefits remain uncertain. MJ Gleeson tightens dividend as Project Transform reshapes business amid subdued housing market
• Negative Sentiment: Adjusted profit declined and MJ Gleeson swung to a full-year loss of approximately £2.7 million, reflecting weak sales conditions and pressure on margins. MJ Gleeson slips to loss amid weak sales environment
• Negative Sentiment: The company reduced its dividend, making the results less attractive to income-focused investors and signaling caution about cash generation and the outlook. MJ Gleeson swings to full-year loss, cuts dividend
• Negative Sentiment: Management is not expecting a meaningful improvement in the housing market, suggesting that weak demand and difficult selling conditions may persist and continue to constrain earnings. Housebuilder MJ Gleeson not expecting any improvement in housing market

Analysts Set New Price Targets

Several brokerages have issued reports on GLE. Royal Bank Of Canada reiterated an “underperform” rating and issued a GBX 200 price target on shares of MJ Gleeson in a research note on Tuesday. Berenberg Bank lowered their target price on MJ Gleeson from GBX 345 to GBX 310 and set a “buy” rating on the stock in a research report on Thursday, June 11th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of GBX 255.

MJ Gleeson Company Profile

MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land.

Gleeson Homes, under the banner of “Building Homes. Changing Lives” builds high-quality affordable homes across the Midlands and North of England. To meet customer demand, and without compromising affordability, the range of homes available extends from one-bed apartments to five-bedroom houses. With a two-bedroom home available from £100,000, a key objective is to ensure that on all of our developments, a meaningful proportion of homes are affordable to a couple earning the National Living Wage.