MJ Gleeson Shares Plunge as Operating Profit Seen  Significantly Below Current Expectations

MJ Gleeson’s (LON: GLE) share price plunged in early Tuesday trading after the housebuilder warned that full-year profit would fall significantly short of forecasts due to margin pressures and the collapse of a key land sale.

In a trading update, the company said its operating profit for the year ending June 30, 2025, would be around 15% to 20% below current market expectations. 

GLE shares are down more than 26% at the start of the session, trading at levels last seen in September 2023.

The operating profit downgrade comes after a planned disposal of land in East Yorkshire failed to complete, removing a material profit contribution from Gleeson Homes' results.

The group also flagged weaker-than-expected gross margins for the year, citing increased build costs, flat selling prices, and the use of buyer incentives. Several bulk sale transactions further weighed on profitability, with gross margin expected to come in approximately 1% below prior guidance.

“The pace of the housing market recovery has not been sufficient to offset the cumulative impact on Gleeson Homes' gross margin of a number of headwinds through the year,” the company stated.

Looking ahead to fiscal 2026, Gleeson warned that the business will continue to face headwinds, including planning delays that will limit the number of active selling sites. 

Gross margins are again forecast to be roughly 1% below market expectations.

While the company’s land division has completed three transactions so far this year, it is still working on seven further disposals due by year-end.