MJ Gleeson Stock Climbs: Navigates Choppy Waters, Gleeson Land Shines

MJ Gleeson (LON:GLE), a prominent UK housebuilder and land promoter, released its audited results for the year ended June 30, 2025, revealing a mixed performance.

While revenue increased, profitability took a hit in the Homes division, offset by a strong performance in Land. The company is focusing on performance enhancement and strategic initiatives to drive future growth.

MJ Gleeson shares have risen over 2% so far on Tuesday.

Gleeson reported total revenue of £365.8 million, a 5.9% increase from £345.3 million in FY2024. Gleeson Homes contributed £348.2 million, up 5.8%, while Gleeson Land saw an 8.0% rise to £17.6 million.

However, profit before tax and exceptional items declined by 11.7% to £21.9 million. Basic EPS (pre-exceptional items) decreased by 12.7% to 28.9p.

The company's cash position weakened, with net debt of £0.8 million compared to net cash of £12.9 million the previous year. The total dividend per share remained unchanged at 11.0p, signaling confidence in the long-term outlook despite the current challenges.

Gleeson Homes sold 1,793 homes, slightly more than the 1,772 sold in FY2024. Reservation rates increased significantly, up 37% to 0.71 per site per week. Average selling prices rose by 4.3% to £193,600. However, the gross profit margin on homes sold decreased from 24.1% to 20.7%, leading to a 26.4% drop in operating profit to £22.3 million. This margin compression reflects continued elevated incentives needed to close sales.

Gleeson Land delivered a stellar performance, with operating profit surging by 218.2% to £7.0 million. The business completed seven land transactions, up from four in the previous year, and signed 13 new site promotion agreements, compared to five in FY2024. The land portfolio now comprises 77 sites with the potential to deliver 18,401 plots.

According to Graham Prothero, CEO, “This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum. We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives”.

In the 11 weeks to September 12, 2025, Gleeson Homes' open-market net reservation rates increased by 8% to 0.54 per site per week. Gleeson Homes has a strong pipeline, and growth plans are based on an ambitious site opening program. The Board aims to sell 3,000 homes per annum. Gleeson Land is well-positioned to deliver another robust performance in FY2026 and significant growth from FY2027.

The board currently expects the Group to deliver an overall result for FY2026 in line with its expectations.