Housebuilder MJ Gleeson has delivered a solid half-year performance, reporting a 9.6 per cent rise in revenue, but remains cautious about the outlook for the remainder of the year due to ongoing cost and regulatory pressures.
For the six months ended 31 December 2025, the housebuilder posted total revenue of £173 million, up from £157.8 million last year.
Gleeson Homes saw a 7.7 per cent increase in revenue to £168.6 million, while also advancing its operational restructuring efforts, including streamlining management and enhancing regional leadership to boost efficiency.
However, gross margin dropped to 19.8 per cent from 20.6 per cent, and operating margin fell to 4.1 per cent from 5.8 per cent, reflecting rising build costs, inflation, and higher administrative expenses.
Despite this, the group expects £1.1 million in overhead savings from the restructure.
Meanwhile, Gleeson Land reported £4.5 million in revenue, buoyed by a record period of planning activity, with three land sale transactions, and five additional sites securing planning permissions.
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Overall group operating profit declined by 17.6 per cent to £4.2 million (HY1 2025: £5.1 million), and pre-tax profit fell by more than half to £1.7 million (HY1 2025: £3.6 million).
Though Gleeson’s forward order book is considered to be “strong”, up 64 per cent to 978 plots.
The group has also made progress in building remediation, despite some delays, maintaining an exceptional provision of £11.7 million for 18 buildings needing work.
Chief executive officer Graham Prothero noted the outlook remains cautious though, with a key focus on the upcoming spring selling season for meeting full-year targets, amid ongoing regulatory and cost pressures.
“For the full year, whilst current market expectations remain achievable, a strong spring selling season remains fundamental to our assumptions in delivering on those expectations and we need to see the recovery gain further momentum,” he said.
“Margins continue to be pressured as net selling price increases are outpaced by build costs, and we experience increasing regulatory and tax headwinds.
“With the right structure and leadership in both businesses, the group is in a strong position to deliver on its medium-term strategic objectives.”
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