The Berkeley Group (LON:BKG) Issues Quarterly Earnings Results

The Berkeley Group (LON:BKG) announced its quarterly earnings results on Wednesday. The company reported GBX 331.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The business 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 Stock Performance

LON BKG opened at GBX 3,660 on Wednesday. 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 1-year low of GBX 2,796 and a 1-year high of GBX 4,442. The business has a 50 day simple moving average of GBX 3,373.53 and a two-hundred day simple moving average of GBX 3,712.50. The stock has a market capitalization of £3.39 billion, a PE ratio of 9.96, a P/E/G ratio of -0.87 and a beta of 1.19.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

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

About The Berkeley Group

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.