Berkeley Group Holdings (LSE:BKG) reported a solid operating performance for the six months to October 2025, recording £254 million in pre-tax profit despite a difficult economic backdrop. The developer remains confident in meeting its profit targets for FY26 and FY27, supported by the underlying strength of the London housing market and ongoing government initiatives. Berkeley also maintained a strong balance sheet, ending the period with £342 million in net cash, and continued to advance its Berkeley 2035 strategy, which includes sustained shareholder returns, strategic land investment, and the rollout of its build-to-rent platform. Nevertheless, higher interest rates and increased regulatory pressures continue to weigh on housing delivery and investment activity.
Berkeley’s outlook is influenced by attractive valuation indicators—such as a low P/E ratio and a high dividend yield—that point to potential undervaluation. However, bearish technical trends and challenges relating to revenue growth and cash flow temper this positive view. While recent corporate milestones are not factored into the scoring model, they provide additional support for a constructive long-term narrative.
More about The Berkeley Group Holdings plc
The Berkeley Group Holdings plc is a leading UK residential developer, best known for delivering high-quality homes with a strong emphasis on design and community. Concentrated primarily in London and the South East, the company operates under its long-term Berkeley 2035 strategy, which focuses on sustained value creation through quality construction, expansion of its build-to-rent offering, and disciplined capital stewardship.
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