MJ Gleeson Faces Challenges with Lowered Profit Expectations

An update from MJ Gleeson PLC ( (GB:GLE) ) is now available.

MJ Gleeson plc announced that the recovery in the housing market has not been sufficient to counteract various challenges faced by Gleeson Homes, including increased build costs and flat selling prices, leading to a gross margin reduction of about 1%. Additionally, the anticipated disposal of a land holding in East Yorkshire will not proceed, resulting in an expected operating profit for Gleeson Homes that is 15% to 20% below current expectations. Looking forward, planning delays are expected to impact Gleeson Homes’ operations into FY2026, with a continued reduction in gross margin. Meanwhile, Gleeson Land has completed three transactions and is working on seven more disposals to be completed by year-end.

The most recent analyst rating on (GB:GLE) stock is a Buy with a £642.00 price target. To see the full list of analyst forecasts on MJ Gleeson PLC stock, see the GB:GLE Stock Forecast page.

Spark’s Take on GB:GLE Stock

According to Spark, TipRanks’ AI Analyst, GB:GLE is a Neutral.

MJ Gleeson PLC demonstrates a stable financial foundation with strong equity and low leverage, contributing to its solid position. However, challenges in revenue growth and cash flow consistency temper the outlook. Technical analysis suggests potential market weakness, though the fair valuation and dividend yield provide some compensation. Recent corporate events, while positive, have a limited impact on the overall score.

To see Spark’s full report on GB:GLE stock, click here.

More about MJ Gleeson PLC

MJ Gleeson plc operates through two main divisions: Gleeson Homes and Gleeson Land. Gleeson Homes is a leading low-cost, affordable housebuilder focusing on areas in the Midlands and North of England where affordable housing is most needed. Gleeson Land, operating in the South of England, is a land promotion division that identifies sustainable development opportunities and promotes them through the residential planning system.

Average Trading Volume: 70,989

Technical Sentiment Signal: Buy

Current Market Cap: £303.6M

For an in-depth examination of GLE stock, go to TipRanks’ Stock Analysis page.