MJ Gleeson (LON:GLE) Posts Quarterly Earnings Results

MJ Gleeson (LON:GLE) released its quarterly earnings results on Thursday. The company reported GBX 2.65 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 Performance

LON GLE opened at GBX 334 on Friday. The firm has a market cap of £194.97 million, a P/E ratio of 12.32 and a beta of 1.14. MJ Gleeson has a 52-week low of GBX 320 and a 52-week high of GBX 538. The business’s 50-day moving average price is GBX 400.45 and its 200 day moving average price is GBX 375.65. The company has a quick ratio of 0.89, a current ratio of 5.79 and a debt-to-equity ratio of 1.70.

About MJ Gleeson

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.