Highlights

  • MJ Gleeson shares declined by 9.92% on 11 February 2026, followed by company’s latest financial results
  • Company’s H1 25/26, revenue rose 9.6% to GBP 173.1m despite weaker profitability.
  • Group’s profit before tax declined 52.8% to GBP 1.7m in H1 25/26.
  • Gross margin reduced to 19.8%, reflecting build cost and pricing pressure.
  • Forward order book rose 64% to 978 plots on 31 December 2025
  • FY2026 expectations achievable, subject to Spring selling season momentum.

MJ Gleeson PLC (LSE:GLE) shares fell 9.92% to GBX 355.80 during the morning session on 11 February 2026, extending the stock’s 12-month decline to 27.24%. Today’s decline followed the release of its results for the half year ended 31 December 2025, which reflected lower profitability despite revenue growth and an expanded order book.

Revenue Growth Offsets Softer Profitability

Group revenue increased 9.6% to GBP 173.1m in H1 25/26 from GBP 157.9m in H1 24/25. Gleeson Homes revenue rose 7.7% to GBP 168.6m, while Gleeson Land revenue increased to GBP 4.5m from GBP 1.3m, reflecting three land sale transactions versus none in the prior period.

However, group operating profit (before exceptional restructuring costs of GBP 0.3m) declined 17.6% to GBP 4.2m, from GBP 5.1m in H1 24/25. Group profit before tax and exceptionals fell 44.4% to GBP 2.0m, while reported profit before tax declined 52.8% to GBP 1.7m, compared with GBP 3.6m in the prior period.

EPS (pre-exceptional items) decreased to GBX 2.7 from GBX 4.8, with basic EPS at GBX 2.2. The interim dividend was unchanged at GBX 4.0 per share.

Margin Pressure and Cost Headwinds

Gross margin on home sales reduced to 19.8% in H1 25/26 from 20.6% in H1 24/25. The company cited higher build costs, additional bulk sales and continued use of sales incentives exceeding selling price increases. ROCE declined to 7.6% from 8.0%.

Borrowings and overdrafts net of cash balances increased to GBP 22.5m in H1 25/26 from GBP 18.1m in the previous corresponding period.

Further operational restructuring changes were implemented in January, with costs of up to GBP 4.5m, including up to GBP 3.0m of non-cash charges, expected to be recognised as exceptional in H2 25/26.

Order Book Expansion and Planning Activity Accelerate

Gleeson Homes sold 848 homes in H1 25/26, up from 801 in H1 24/25. Net reservation rates increased to 0.75 per site per week, compared with 0.55 in the prior first half. The forward order book rose 64% to 978 plots, from 597 plots a year earlier. Average selling prices increased 2.5% to GBP 198,800.

Gleeson Land secured planning on five sites anticipated to sell in FY2026, submitted applications on 15 sites and expanded its portfolio to 77 sites.

Outlook Tied to Spring Selling Momentum

The company stated that while current market expectations for FY2026 remain achievable, delivery is dependent on a favourable Spring selling season and further recovery in demand. The bulk market has softened, margins remain under pressure as build costs outpace selling price increases, and regulatory and tax headwinds persist. Guidance will be updated in April 2026.

FAQs

  1. Why did MJ Gleeson shares fall following the results?

The decline followed lower profitability in H1 25/26, including a 52.8% drop in profit before tax and margin pressure despite revenue growth.

  1. How did revenue perform in H1 25/26?

Group revenue increased 9.6% to GBP 173.1m, compared with GBP 157.9m in H1 24/25.

  1. What is the outlook for FY2026?

Market expectations remain achievable, but performance depends on a strong Spring selling season, with guidance to be updated in April 2026.