MJ Gleeson (LON:GLE) Releases Quarterly Earnings Results

MJ Gleeson (LON:GLE) issued its earnings results on Thursday. The company reported GBX 2.65 earnings per share (EPS) for the quarter, Digital Look Earnings reports. MJ Gleeson had a net margin of 5.59% and a return on equity of 6.60%.

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

• Robust H1 performance — group revenue rose 9.6%, completions were 848 homes (+6%), and the forward order book grew 64% to 978 plots with partnerships now generating first revenues.
• Margin and profit pressure — group operating profit fell 17.6% and Gleeson Homes’ gross margin narrowed to 19.8% due to higher bulk sales, average incentives around 4.5%, and build cost inflation slightly exceeding price gains.
• Project Transform moved into phase two to centralize land/marketing/finance into regional ownership to improve build pace and margin, targeting ~£1m annualized savings while incurring up to ~£4.5m of one‑off exceptional costs.
• Gleeson Land momentum — three site sales in H1 (including the first site bought under the new strategy), 15 planning applications, four new promotion agreements and a growing, higher‑quality portfolio.
• Outlook remains uncertain — open market sales rate has recovered to 0.55 but is well below last year, and softer bulk/RP markets plus planning and regulatory headwinds mean guidance is conditional and management will update in April.

MJ Gleeson Stock Down 0.9%

GLE opened at GBX 352.70 on Friday. MJ Gleeson has a one year low of GBX 320 and a one year high of GBX 538. The company has a debt-to-equity ratio of 1.70, a quick ratio of 0.89 and a current ratio of 5.79. The stock has a market capitalization of £205.89 million, a P/E ratio of 13.01 and a beta of 1.14. The business’s 50-day simple moving average is GBX 401.61 and its 200-day simple moving average is GBX 375.93.

MJ Gleeson News Roundup

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

• Positive Sentiment: Revenue growth and improved forward orders give evidence of underlying demand recovery; management says recent activity is “cautiously encouraged,” supporting medium‑term outlook. Profits fall and housebuilding and land promotion group cautiously encouraged by recent activity
• Positive Sentiment: Company describes the half as “robust” given a subdued market, signalling operational resilience that could underpin recovery when costs moderate. We don’t want any more shocks: MJ Gleeson reports robust performance in subdued market
• Neutral Sentiment: The company reported quarterly EPS of GBX 2.65, net margin 5.59% and ROE 6.60%; management hosted a conference call and published a slide deck for more detail. These data let investors dig into cash flow, orderbook and guidance. Earnings report and conference call
• Negative Sentiment: Reported profits fell sharply (some coverage says profits halved year‑on‑year), a headline that triggered short‑term selling pressure as investors focus on near‑term profitability. Profits halve at housebuilder as it hails a robust performance
• Negative Sentiment: Rising costs have compressed margins and management warned that cost and margin pressure weighed on first‑half profit — investors remain sensitive to further margin deterioration. MJ Gleeson shares fall as costs weigh on first-half profit

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.