The Berkeley Group (BKG) H1 2026 earnings summary

Executive summary

• Delivered pre-tax profit of £254 million for the first half of FY25, with net cash of £342 million after £132 million in share buy-backs, and net asset value per share up 4.7% to £37.63.

• Operating margin at 20.8%, basic EPS at 184p, and robust liquidity of £1.5 billion maintained amid challenging market and regulatory conditions.

• Over £220 million provided for affordable housing and community infrastructure, with industry-leading Net Promoter Score.

• Focus on quality home delivery, investment in Build-to-Rent (BTR) platform, and disciplined cost and balance sheet control.

• Government policy is supportive, but the operating environment remains complex due to regulatory burden and fragile sentiment.

Financial highlights

• Revenue declined 7.8% year-over-year to £1,179.5 million, with gross profit of £319 million and gross margin at 27.0%.

• Operating margin improved to 20.8% from 20.2% year-over-year; operating profit fell 5.1% to £245.2 million.

• Basic earnings per share decreased 1.7% to 183.7p; pre-tax return on equity at 14.2% and return on capital employed at 15.5%.

• Net cash position increased to £342 million; total liquidity exceeds £1.5 billion.

• Net finance income at £3 million, down from £10 million due to lower interest rates.

Outlook and guidance

• On track to meet pre-tax profit guidance of £450 million for FY26 and FY27, with operating margins expected in the historic range of 17.5%-19.5%.

• Targeting net cash of around £300 million at FY26 year-end, after further land creditor payments.

• Volumes and ASP expected to be marginally lower in FY26, with further slight volume decline in FY27 but pricing stable.

• Shareholder returns prioritized, with next return hurdle of £640 million by September 2030.

• Plans to continue capital investment in core business and BTR platform, with flexibility to adjust capital allocation.