MJ Gleeson (LON:GLE) Issues Earnings Results

MJ Gleeson (LON:GLE) issued its quarterly 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 return on equity of 4.67% and a net margin of 3.76%.

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 Stock Up 1.0%

Shares of GLE traded up GBX 2.50 during trading hours on Tuesday, hitting GBX 249. The stock had a trading volume of 304,203 shares, compared to its average volume of 129,550. MJ Gleeson has a 1-year low of GBX 214.09 and a 1-year high of GBX 435. The firm has a market capitalization of £145.26 million, a P/E ratio of 10.15 and a beta of 0.62. The firm has a 50 day simple moving average of GBX 267.19 and a 200-day simple moving average of GBX 263.80. The company has a debt-to-equity ratio of 7.86, a current ratio of 3.87 and a quick ratio of 0.89.

Wall Street Analyst Weigh In

Separately, Berenberg Bank lowered their price objective on shares of MJ Gleeson from GBX 345 to GBX 310 and set a “buy” rating for the company in a research note on Thursday, June 11th. One analyst has rated the stock with a Buy rating, According to MarketBeat.com, the company has an average rating of “Buy” and an average price target of GBX 310.

MJ Gleeson News Summary

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

• Positive Sentiment: FY2026 revenue increased 12.1%, indicating continued underlying demand and progress in the group’s housebuilding and land businesses. MJ Gleeson FY26 Revenue Rises 12.1% as Adjusted Profit Declines
• Positive Sentiment: Project Transform is reshaping the business and could improve efficiency, reduce costs and support margins once implemented, although the benefits are likely to take time to emerge. MJ Gleeson tightens dividend as Project Transform reshapes business amid subdued housing market
• Neutral Sentiment: Management does not expect a meaningful improvement in the housing market, suggesting that buyer affordability, demand and sales conditions may remain subdued in the near term. Housebuilder MJ Gleeson not expecting any improvement in housing market
• Negative Sentiment: Adjusted profit declined despite the revenue increase, showing that higher sales have not yet translated into stronger earnings. MJ Gleeson FY26 Revenue Rises 12.1% as Adjusted Profit Declines
• Negative Sentiment: The company swung to a full-year loss of approximately £2.7 million and cut its dividend, weakening the investment case for income-focused shareholders. MJ Gleeson swings to full-year loss, cuts dividend

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.