UK's MJ Gleeson FY revenue beats on partnerships strategy
UK's MJ Gleeson FY revenue beats on partnerships strategy
Overview
UK affordable housebuilder and land promoter's FY2026 revenue rose 12%, beating analyst expectations
Adjusted pretax profit for FY2026 fell 51% yr/yr due to margin pressure and delayed land sale
Company cut final dividend, citing subdued market and prudent capital allocation policy
Outlook
Company expects FY2027 results in line with current market expectations
Gleeson Homes to operate from fewer sites in FY2027 and FY2028 due to planning bottlenecks
Build cost inflation and regulatory burdens expected to slow margin recovery
Result Drivers
PARTNERSHIPS STRATEGY - Company said expanded partnerships business contributed to higher home completions and revenue
BUILD COST INFLATION - Build cost inflation outpaced selling price increases, contributing to reduced gross margins
LAND SALES DELAY - Gleeson Land's operating loss was driven by a more cautious land market and the deferral of a major transaction
Company press release: ID:nRSO7180Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Beat | GBP 410 mln | GBP 397.44 mln (7 Analysts) |
FY Adjusted Pretax Profit |
| GBP 10.80 mln |
|
FY Dividend |
| GBP 0.05 |
|
FY Pretax Loss |
| GBP 2.70 mln |
|
FY ROCE |
| 5.20% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy"
Wall Street's median 12-month price target for MJ Gleeson PLC is GBp310.00, about 25.8% above its September 14 closing price of GBp246.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)