Gleeson Homes has announced that its operating profit for the financial year ending 30 June 2025 is expected to come in 15-20% below current forecasts.
In a trading update issued on 3 June, the housebuilder attributed the shortfall to several persistent challenges. The company cited increased construction costs, stagnant selling prices, and ongoing reliance on buyer incentives. A number of bulk sale deals also contributed to margin pressure.
Gleeson noted that these headwinds have outweighed the current pace of the housing market, which has not been strong enough to counteract the financial strain.
In addition, the company confirmed that the collapse of a planned land sale in East Yorkshire has had a further negative impact on operating profit.
Gross margin is also expected to fall short of earlier guidance. The company said its full-year margin will be 1% lower than anticipated due to the combined effect of market conditions and internal factors.
Looking ahead to FY2026, the firm expects similar issues to persist. The company warned that planning delays will lead to fewer active development sites than previously forecast, which in turn will affect overall sales performance. Gross margin is again expected to be around 1% lower than current market expectations.
Meanwhile, the land division of the business, Gleeson Land, has completed three transactions so far this year. It continues to work towards completing another seven land disposals by the end of the financial year.
