The Berkeley Group (LON:BKG) Releases Earnings Results

The Berkeley Group (LON:BKG) posted its quarterly earnings data on Wednesday. The company reported GBX 331.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The firm had revenue of GBX 238.33 billion for the quarter. The Berkeley Group had a return on equity of 8.79% and a net margin of 13.36%.

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 Down 4.3%

BKG opened at GBX 3,592 on Friday. The stock has a market capitalization of £3.32 billion, a P/E ratio of 9.77, a P/E/G ratio of -0.87 and a beta of 1.19. The company has a current ratio of 3.58, a quick ratio of 0.57 and a debt-to-equity ratio of 18.24. The Berkeley Group has a 12 month low of GBX 2,796 and a 12 month high of GBX 4,442. The firm’s fifty day simple moving average is GBX 3,385.97 and its 200 day simple moving average is GBX 3,712.65.

Insider Transactions at The Berkeley Group

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

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on BKG shares. JPMorgan Chase & Co. cut their target price on The Berkeley Group from GBX 5,000 to GBX 4,200 and set an “overweight” rating on the stock in a research note on Thursday, April 2nd. Royal Bank Of Canada boosted their price objective on shares of The Berkeley Group from GBX 3,850 to GBX 4,100 and gave the company an “outperform” rating in a report on Thursday. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 4,531 target price on shares of The Berkeley Group in a report on Thursday. Bank of America raised shares of The Berkeley Group to a “buy” rating and reduced their price target for the stock from GBX 4,080 to GBX 4,020 in a research report on Monday, March 30th. Finally, Berenberg Bank decreased their price target on shares of The Berkeley Group from GBX 4,500 to GBX 4,000 and set a “buy” rating for the company in a report on Thursday, April 2nd. Six research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, The Berkeley Group has a consensus rating of “Moderate Buy” and a consensus target price of GBX 4,218.57.

The Berkeley Group Company Profile

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.