MJ Gleeson Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

MJ Gleeson plc (GLE.L) reported its full-year 2024 earnings on 18 September 2024, with earnings per share (EPS) beating expectations despite revenues falling short of forecasts. The company's earnings were driven by strong operating margins and cost structures, as well as a robust performance from Gleeson Homes.

Gleeson Homes, the company's primary revenue driver, saw a 2.6% increase in revenue to £329.0 million, despite a 13.4% decline in operating profit to £30.3 million. The division's strong customer recommendation score of 95.3% and five-star status in each of its six regions contributed significantly to the earnings growth. Additionally, Gleeson Homes' net reservation rates improved by 28% in the 10 weeks to 6 September 2024, offsetting the lower average selling prices.

Gleeson Land, the company's land division, also played a crucial role in the overall earnings picture. Despite a 120% increase in operating profit to £2.2 million, the division's revenue grew by 117.3% to £16.3 million. Gleeson Land's improved performance and pipeline growth contributed to the company's overall earnings, with the division expected to deliver an improved performance in fiscal year 2025.

The company's strategic initiatives, such as partnerships and site openings, are poised to drive future earnings growth. Gleeson Homes signed its first partnership agreement during the year and a second post-period end in August, diversifying its open market business and reducing risk. The company is confident that Gleeson Homes will meet market expectations for the current year and fulfill an ambitious program of site openings, which will drive growth for fiscal year 2026 and beyond.

In conclusion, MJ Gleeson's full-year 2024 earnings demonstrated resilience, with EPS beating expectations despite revenues lagging behind forecasts. The company's strong operating margins, cost structures, and robust performance from Gleeson Homes and Gleeson Land contributed to the earnings growth. The company's strategic initiatives, such as partnerships and site openings, position it well for future growth and earnings potential.