The Berkeley Group (LON:BKG) Issues Earnings Results

The Berkeley Group (LON:BKG) announced its quarterly earnings results on Wednesday. The company reported GBX 331.60 EPS for the quarter, Digital Look Earnings reports. The company had revenue of GBX 238.33 billion for the quarter. The Berkeley Group had a net margin of 15.29% and a return on equity of 10.20%.

Here are the key takeaways from The Berkeley Group’s conference call:

• Berkeley delivered in-line FY2026 results, with pre-tax profit of GBP 451 million and net asset value per share up 9% to GBP 39.17, while maintaining a strong balance sheet and GBP 363 million of net cash.
• Sales conditions were soft as transactions were hurt by Budget-related uncertainty, geopolitical tension, and cautious buyers, leaving sales about 15% below recent run-rate levels.
• Management is prioritizing cash generation and capital discipline over short-term profit, with no current investment in new land sites and a focus on optimizing existing holdings, controlling WIP, and supporting share buybacks.
• Planning progress added significant land value, including new consents and master plans at several sites, with about GBP 300 million of value added to gross profit from land holdings during the year.
• Berkeley Living is scaling up successfully, with early lettings ahead of expectations, rents above forecast, and six developments expected to be income stabilized by FY2028 for an initial portfolio of 1,122 homes.

The Berkeley Group Price Performance

Shares of LON:BKG opened at GBX 3,810 on Thursday. The business’s 50 day simple moving average is GBX 3,378.73 and its 200-day simple moving average is GBX 3,712.38. The firm has a market capitalization of £3.52 billion, a price-to-earnings ratio of 10.37, a price-to-earnings-growth ratio of -0.87 and a beta of 1.19. The company has a debt-to-equity ratio of 18.94, a current ratio of 3.54 and a quick ratio of 0.57. The Berkeley Group has a 12 month low of GBX 2,796 and a 12 month high of GBX 4,442.

Analyst Ratings Changes

Several analysts have recently weighed in on BKG shares. Berenberg Bank reduced their price objective on shares of The Berkeley Group from GBX 4,500 to GBX 4,000 and set a “buy” rating for the company in a research report on Thursday, April 2nd. Jefferies Financial Group reduced their price target on shares of The Berkeley Group from GBX 4,598 to GBX 4,531 and set a “buy” rating for the company in a research report on Tuesday, May 5th. JPMorgan Chase & Co. dropped their price objective on The Berkeley Group from GBX 5,000 to GBX 4,200 and set an “overweight” rating on the stock in a report on Thursday, April 2nd. Bank of America raised The Berkeley Group to a “buy” rating and reduced their target price for the company from GBX 4,080 to GBX 4,020 in a report on Monday, March 30th. Finally, Royal Bank Of Canada upgraded The Berkeley Group to a “sector perform” rating and set a GBX 3,900 price target on the stock in a research note on Wednesday, April 1st. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, The Berkeley Group currently has a consensus rating of “Moderate Buy” and an average target price of GBX 4,190.

Insiders Place Their Bets

In related news, insider Robert C. G. Perrins bought 7,000 shares of the stock in a transaction on Thursday, April 30th. The shares were purchased at an average price of GBX 3,168 per share, for a total transaction of £221,760. Also, insider Rachel Downey acquired 575 shares of the company’s stock in a transaction that occurred on Wednesday, April 15th. The shares were bought at an average price of GBX 3,449 per share, with a total value of £19,831.75. Over the last quarter, insiders have acquired 14,575 shares of company stock worth $46,874,175. 9.98% of the stock is owned by company insiders.

The Berkeley Group Company Profile

At Berkeley Group we build homes and neighbourhoods across London, Birmingham and the South of England.

Our passion and purpose is to build quality homes, strengthen communities and make a positive difference to people’s lives. We use our sustained commercial success to make valuable and enduring contributions that benefit all our stakeholders.

We specialise in brownfield regeneration, working closely with local communities and councils to revive underused land and create homes where they are needed most.