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

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

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 Trading Up 6.2%

BKG opened at GBX 3,660 on Wednesday. The firm’s 50 day moving average is GBX 3,373.53 and its 200-day moving average is GBX 3,712.50. The firm has a market capitalization of £3.39 billion, a P/E ratio of 9.96, a P/E/G ratio of -0.87 and a beta of 1.19. The Berkeley Group has a 52-week low of GBX 2,796 and a 52-week high of GBX 4,442. The company has a quick ratio of 0.57, a current ratio of 3.54 and a debt-to-equity ratio of 18.94.

Wall Street Analysts Forecast Growth

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

Insider Transactions at The Berkeley Group

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

About The Berkeley Group

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.