MJ Gleeson Lowers Profit Expectations Amid Housing Market Headwinds

PUBLISHED: Jun 03 2025 @ 03:45 | Comments (0) | More info about Fiona Craig

MJ Gleeson plc (LSE:GLE) has revised its outlook downward, citing persistent challenges in the housing market that have outweighed early signs of recovery. Gleeson Homes has been particularly affected by rising construction costs and stagnant selling prices, resulting in an estimated 1% reduction in gross margin. Additionally, a planned land sale in East Yorkshire will no longer proceed, contributing to an expected operating profit shortfall of 15% to 20% compared to prior forecasts. The company also anticipates that ongoing planning delays will impact operations well into FY2026, with continued margin pressures.

Despite the difficulties faced by Gleeson Homes, the Gleeson Land division has finalized three land sales and is working on seven more, which are expected to close by the end of the year.

Outlook and Market Dynamics

MJ Gleeson maintains a healthy balance sheet with low debt and strong equity, underpinning its financial resilience. However, the company faces headwinds in revenue consistency and cash flow generation. Technical indicators point to potential market softness, although the stock’s reasonable valuation and dividend yield help offset some investor concerns. Recent corporate activities provide modest strategic support but have limited influence on the overall outlook.

About MJ Gleeson plc

MJ Gleeson plc operates through two primary business units: Gleeson Homes and Gleeson Land. Gleeson Homes focuses on delivering affordable homes across the Midlands and North of England, targeting regions with acute housing needs. Gleeson Land operates in the South of England, specializing in land promotion by securing residential planning permissions to unlock development potential.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Ltd. ADVFN Ltd does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.