The Berkeley Group (BKG) H2 2025 earnings summary

Executive summary

• Delivered GBP 529 million pre-tax profit for the year ended 30 April 2025, in line with guidance and on track for FY 2026 targets.

• Launched the Berkeley 2035 strategy, targeting long-term shareholder value and agile capital allocation.

• Established a market-leading Build-to-Rent (BTR) platform, transferring 800 homes across four sites, with first development launch in spring 2026.

• Operating environment remains volatile, but long-term outlook is positive due to strong market fundamentals and supportive government policy.

• Shareholder return targets were met, and the business plan was adapted to current market conditions.

Financial highlights

• Revenue stable at GBP 2.49 billion, with 4,047 homes sold at an average price of GBP 593,000; gross margin 26.6%, operating margin 20.1%.

• Earnings per share GBP 3.72, slightly down due to lower profit but offset by share buybacks; net asset value per share increased by 7% to GBP 35.95.

• Net cash position of GBP 337 million at year-end, with shareholders' funds at GBP 3.6 billion.

• Shareholder returns of GBP 381.5 million, including buybacks and dividends; shares in issue reduced by 6.9 million.

• Operating expenses fell 3% year-over-year.

Outlook and guidance

• On target to meet FY 2026 guidance; FY 2027 expected to be similar based on current market conditions.

• Operating margins expected to remain within the 17.5%–20.1% range.

• Targeting net cash of around GBP 300 million at end of FY 2026, factoring in GBP 250 million land creditor settlements and BTR investment.

• Minimum shareholder return target of GBP 2 billion by September 2034, with GBP 900 million by September 2030.

• Shareholder returns of GBP 121 million due by September 2025; next hurdle is GBP 640 million by September 2030.