MJ Gleeson (LON:GLE) Announces Earnings Results

MJ Gleeson (LON:GLE) posted its earnings results on Tuesday. The company reported GBX 14.09 earnings per share (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 LON GLE traded down GBX 0.50 during mid-day trading on Wednesday, reaching GBX 248.50. 84,425 shares of the company traded hands, compared to its average volume of 128,263. MJ Gleeson has a fifty-two week low of GBX 214.09 and a fifty-two week high of GBX 435. The firm has a market cap of £144.96 million, a PE ratio of 10.13 and a beta of 0.62. The stock has a fifty day simple moving average of GBX 267.37 and a 200-day simple moving average of GBX 263.12. The company has a debt-to-equity ratio of 7.86, a current ratio of 3.87 and a quick ratio of 0.89.

MJ Gleeson News Summary

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

• Positive Sentiment: FY26 revenue increased 12.1%, reflecting continued activity across the business despite challenging market conditions. However, the revenue growth was outweighed by lower profitability. MJ Gleeson FY26 Revenue Rises 12.1% as Adjusted Profit Declines
• Neutral Sentiment: Management said Project Transform is reshaping MJ Gleeson’s operations, but the company does not expect a meaningful improvement in the housing market in the near term. The program could support efficiency over time, although its benefits may take longer to appear. 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, highlighting the impact of weak sales, affordability pressures and a subdued housing environment. MJ Gleeson slips to loss amid weak sales environment
• Negative Sentiment: The company cut its dividend, reducing the stock’s income appeal and signaling caution about near-term cash generation and earnings recovery. MJ Gleeson swings to full-year loss, cuts dividend
• Negative Sentiment: Royal Bank of Canada reaffirmed its “underperform” rating and set a GBX 200 price target, below the stock’s recent GBX 248.50 opening level. The target indicates analysts see further downside risk. Royal Bank of Canada rating update

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on GLE shares. Berenberg Bank cut their price target on MJ Gleeson from GBX 345 to GBX 310 and set a “buy” rating on the stock in a report on Thursday, June 11th. Royal Bank Of Canada restated an “underperform” rating and issued a GBX 200 target price on shares of MJ Gleeson in a research report on Tuesday. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price 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.