Q2 2026 Glenveagh Properties PLC Earnings Call

September 10, 2026

Speaker #2: Your line is muted.

Speaker #3: Call recording is on.

Speaker #4: Welcome to the conference call. For the first part of the conference call, the participants will be in listen-only mode. During the question-and-answer session, participants are able to ask questions by dialing #Key5 on their telephone keypad.

Operator: Welcome to the conference call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing #5 on their telephone keypad. Now I will hand the conference over to Stephen Garvey. Please go ahead, sir.

Speaker #4: Now I will hand the conference over to Stephen Garvey. Please go ahead, sir.

Speaker #5: Good morning, everyone, and thank you, operator. I am Stephen Garvey, Chief Executive of Glenveagh Properties. I'm joined today by my colleagues Conor Murtagh, our CFO, and Kate Halliday of Investor Relations.

Stephen Garvey: Good morning, everyone, and thank you, operator. I am Stephen Garvey, Chief Executive of Glenveagh Properties. I am joined today by my colleagues Conor Murtagh, our CFO, and Kate Halliday of Investor Relations. Thank you for joining our interim results call for the six months end of 30 June 2026. This morning I will take you through the executive summary on the H1 performance, the market, the policy backdrop, and how our long-term strategy is showing up in home building, partnerships, land, and innovation. Conor will take you through the financials, capital allocation, and the outlook, and I will come back at the end for any closing remarks. As always, we will leave plenty of time for your questions towards the end. We begin on slide 4, which sets out the highlights of H1, including a sold-out 2026 and an EPS upgrade guidance amongst many other milestones of note.

Speaker #5: Thank you for joining our interim results call for the six months ended 30th June 2026. This morning, I'll take you through the executive summary on the H1 performance, the market, the policy backdrop, and how our long-term strategy is showing up in home building, partnerships, land, and innovation.

Speaker #5: Conor will take you through the financials, capital allocation, and the outlook. I'll come back at the end for any closing remarks. As always, we'll leave plenty of time for your questions towards the end.

Speaker #5: We'll begin with slide 4, which sets out the highlights of H1, including a sold-out 2026 and an EPS upgrade to guidance, among many other milestones of note.

Speaker #5: Overall, this was a half of accelerating activity. Construction spend is up 34%. We launched six new sites, and the order book has grown to a record $1.8 billion, up 29% year-on-year.

Stephen Garvey: Overall, this was a half of accelerating activity. Construction spend is up 34%, we launched six new sites, and the order book has grown to a record EUR 1.8 billion, up 29% year-on-year. The result that H2 is now fully underwritten. Within our home building segment, nearly 2,400 units are sold, contracted, or reserved, up 62%, and every home we expect to close this year is already sold, contracted, or reserved. Within our partnership segment, we have now seen strong increases in activity in the period, reflected by an increase of 43% in partnership revenue, standing at EUR 176 million. Our landbank saw further enhancement, increasing to 21,000 units from 19,000 at year-end, with limited incremental investment. We have now doubled our buyback program, which we began in January of this year, expanding it to EUR 100 million.

Speaker #5: The result is that the second half is now fully underwritten. Within our Home Building segment, nearly 2,400 units are sold, contracted, or reserved—up 62%. Every home we expect to close this year is already sold, contracted, or reserved.

Speaker #5: Within our partnership segment, we have now seen strong increases in activity in the period, reflected by an increase of 43% in partnership revenue, standing at $176 million.

Speaker #5: Our land banks are further enhanced, increasing to 21,000 units from 19,000 at year-end, with limited incremental investment. We have now doubled our buyback program, which we began in January of this year, expanding it to $100 million.

Speaker #5: On completion, this program of approximately $520 million will have been returned to shareholders since 2021. Today, we've also upgraded guidance. We now expect to deliver almost 2,900 equivalent units across the group this year, up from 2,750.

Stephen Garvey: On completion, this program of approximately EUR 520 million will have been returned to shareholders since 2021. Today, we've also upgraded guidance. We now expect to deliver almost 2,900 equivalent units across the group this year, up from 2,750. With more than 1,700 home building units, up from 1,600. We have upgraded our full year EPS guidance to at least EUR 0.21, whereas in March to EUR 0.21, a mark of continued confidence in the trajectory of the business. These upgrades come on the back of a fully sold order book for 2026 and strong activity evidence from the construction spend on the ground. Turning to slide 5 and the robust underlying market fundamentals we're experiencing here in Ireland. The demand picture hasn't changed. Ireland's population continues to grow, increasing approximately 17% in the past decade.

Speaker #5: And with more than 1,700 home-building units, up from 1,600. We have upgraded our full-year earnings per share guidance to at least €0.21, whereas in March.

Speaker #5: To 21 cents—a mark of continued confidence in the trajectory of the business. These upgrades come on the back of a fully sold order book for 2026 and strong evidence of activity from the construction spend on the ground.

Speaker #5: Turning to slide 5, and the robust underlying market fundamentals we're experiencing here in Ireland. The demand picture hasn't changed. Ireland's population continues to grow, increasing approximately 17% in the past decade.

Speaker #5: Our population is the youngest among our European peers, with a median age now of 39.6, over five years younger than the EU average. This points to a population at prime household formation age and contributes to the sustained structural housing demand we are seeing today.

Stephen Garvey: Our population is the youngest of our European peers, with a medium age of now 39.6, over 5 years younger than the EU average. This points to a population of prime household formation age and contributes to the sustained structural housing demand we are seeing today. Employment is at an all-time high, and the average weekly earnings rose 3.9% from Q2 2025 ahead of inflation. Mortgage approvals reached a record EUR 17 billion annualized to March 2026, with drawdown values up almost 8% year-on-year. Household income and access to credit both remain supportive of affordability. Against that, national completions for the H1 were just under 17,000 units, up 11% year-on-year. However, demand continues to outpace supply. Although 40,000 completions may be achieved in 2026, planning and commencement data suggest this number may not be sustainable into 2027. Looking now at policy on slide 6.

Speaker #5: Employment is at an all-time high, and average weekly earnings rose 3.9% from Q2 2025, ahead of inflation. Mortgage approvals reached a record €17 billion annualized to March 2026, with drawdown values up almost 8% year-on-year.

Speaker #5: Household income and access to credit both remain supportive of affordability. Against that, national completions for the first half were just under 17,000 units, up 11% year-on-year. However, demand continues to outpace supply.

Speaker #5: Although 40,000 completions may be achieved in 2026, planning and commencement data suggest this number may not be sustainable into 2027. Looking now at policy on slide 6, there has been decisive and supportive government policy set out.

Stephen Garvey: There has been decisive and supportive government policy set out. The framework is now largely complete, while the focus has now shifted to implementation and delivery. The EUR 275 billion in the National Development Plan front-loads housing and water infrastructure, with capital ceilings rising annually and the National Planning Framework rezoning underway. These are all very encouraging developments. A number of key supports have been put in place, including Help to Buy has been extended to December 2029. The First Home Scheme funding of approximately EUR 390 million was put in place with future plans to expand on, which is now in progress. Croí Cónaithe continues to bridge the apartment viability gap. Apartment VAT has been reduced from 13.5% to 9%, as well as the corporation's tax deduction of EUR 50,000 per apartment till the end of 2030. The focus on implementation can be seen through.

Speaker #5: The framework is now largely complete, while the focus has shifted to implementation and delivery. The €275 billion in the National Development Plan front-loads housing and water infrastructure, with capital spending rising annually and the National Planning Framework rezoning underway.

Speaker #5: These are all very encouraging developments. A number of key supports have been put in place, including Help to Buy, which has been extended to December 2029. The First Home funding of approximately $390 million was put in place, with future plans to expand on this now in progress.

Speaker #5: Creekona continues to bridge the apartment viability gap. Apartment VAT has been reduced from 13.5% to 9%, as well as the corporation tax deduction of $50,000 per apartment until the end of 2030.

Speaker #5: And the focus on implementation can be seen through. On the back of the Planning Act 2024, the housing activation officers are making a real difference on the ground.

Stephen Garvey: On the back of the Planning and Development Act 2024, the housing activation officers are making a real difference on the ground. As well as infrastructure progress on 2 projects that are critical to the medium-term housing supply, the Greater Dublin Drainage Project has moved into procurement and enabling works, while the Shannon Pipeline is in the final stages of planning. However, there is still more to do. As outlined in our Home Building Horizons Report 2026, it is clear that zoning, servicing, and capacity-enabling infrastructure still remain as constraints. But the direction of travel is clearly right, and the job from here is implementation. We will continue to engage constructively to help translate policy into homes on the ground so that we can best contribute towards the national delivery targets. Taking a look at slide 7 now.

Speaker #5: As well as infrastructure progress on two projects that are critical to the medium-term housing supply, the Greater Dublin Drainage Project has moved into procurement and enabling works, while the Shannon Pipeline is in the final stages of planning.

Speaker #5: However, there is still more to do. As outlined in our Orbital Home Building Horizons Report 2026, it is clear that zoning, servicing, and capacity-enabling infrastructure still remain as constraints.

Speaker #5: But the direction of travel is clearly right, and the job from here is implementation. We will continue to engage constructively to help translate policy into homes on the ground so that we can best contribute towards the national delivery targets.

Speaker #5: Taking a look at slide 7 now, I'd like to focus on the policy picture that is providing strong support to buyers in terms of affordability.

Stephen Garvey: I'd like to focus on the policy picture that is providing strong support to buyers in terms of affordability. Help to Buy and the First Home Scheme together account for just 4.5% of government's EUR 7.5 billion housing package. When you look at the chart on the right-hand side, you can see that they can provide a significant impact for first-time buyers. To understand the relevance to our own platform, this is why we build Own Door housing and why our product primarily sits below EUR 500,000. Our focus is to maximize affordability where the demand is strongest, and this is why our average selling price will trend down, not up. Which brings me to slide 8 and our landbank. As we've previously mentioned, we own a high-quality, well-located, fully assembled landbank. This provides us with the visibility required to plan and achieve our medium-term objectives.

Speaker #5: Help to Buy and the First Home Scheme together account for just 4.5% of the government's €7.5 billion housing package. And when you look, you see that they can provide a significant impact for first-time buyers relevant to our own platform. This is why we build own-door housing and why our product primarily sits below €500,000.

Speaker #5: Our focus is to maximize affordability where the demand is strongest, and this is why our average selling price will trend down, not up. Which brings me to Slide 8 and our land bank.

Speaker #5: As we've previously mentioned, we own a high-quality, well-located, fully assembled land bank. This provides us with the visibility required to plan and achieve our medium-term objectives.

Speaker #5: Our land bank has expanded to approximately 21,000 units after disposals, with limited incremental capital investment, up from 19,000 units at year-end. Targeted land investment of €33 million added 1,100 plots to the business.

Stephen Garvey: Our landbank has expanded to approximately 21,000 units after disposals, with limited incremental capital investment up from 19,000 units at year-end. Targeted land investment of EUR 33 million added 1,100 plots to the business. Planning and design gains added a further 900 units, and rezoning of our own strategic land holdings to residential use added a further 600 units at no extra cost. Almost 75% of these homes will be located in the Greater Dublin area, and the majority will be Own Door product, which is the deepest and most resilient part of the market. This will support the delivery of 2,900 to 3,700 units per annum through to 2030 without material further investment in the near term. Slide 9 details our investment case, and having spoke to the compelling market opportunity, I'll turn now to our operational review to take you through the progress across the platform.

Speaker #5: Planning and design gains added a further 900 units, and rezoning of our own strategic land holdings to residential use added a further 600 units at no extra cost.

Speaker #5: Almost 75% of these homes will be located in the Greater Dublin area, and the majority will be owned or project, which is the deepest and most resilient part of the market.

Speaker #5: This will support the delivery of 2,900 to 3,700 units per annum through to 2030, without material further investment in the near term. Slide 9 details our investment case and, having spoken to the compelling market opportunity, I'll turn now to our operational review to take you through the progress across the platform.

Speaker #5: Bringing us to slide 11, our home building segment is underpinned by the fact that all units expected to close in 2026 are now sold, contracted, or reserved.

Stephen Garvey: Bringing us to slide 11, our home building segment is underpinned by the fact that all units expected to close in 2026 are now sold, contracted, or reserved. With 155 units closed in the first half and just under EUR 64 million of revenue, our cumulative spend in the period, which is up 34% year on year, underpins the delivery into the second half of the year. As we look into H2, our forward order book comprised of nearly 2,400 home building units sold, contracted, or reserved, up 62% year on year. We've launched six new sites in H1, with a further seven phases selling across other existing developments. Turning to slide 12, our partnership segment continues to grow in scale and significance. As we proudly operate as an established partner of choice for the state and state agencies for large-scale affordable delivery, underpinned by approvable and scalable model.

Speaker #5: With 155 units closed in the first half and just under €64 million of revenue, our cumulative spend in the period, which is up 34% year-on-year, underpins the delivery into the second half of the year.

Speaker #5: As you look into H2, our forward order book comprised nearly 2,400 home-building units sold, contracted, or reserved, up 62% year-on-year. We've launched six new sites in H1, with a further seven phases selling across other existing developments.

Speaker #5: Turning to slide 12, our partnership segment continues to grow in scale and significance. And as we proudly operate as an established partner of choice for the state and state agencies for large-scale affordable delivery, underpinned by a provable and scalable model.

Speaker #5: We continue to make progress on our active sites in Belmaston, Oscar Turner Road, and Moortown, continuing to contribute. And we are currently in active discussions on approximately 1,000 units on Glenveagh lands.

Stephen Garvey: We continue to make progress on our active sites in Belmayne, Oscar Traynor Road, and Mooretown, continue to contribute. We are currently in active discussions on approximately 1,000 units on Glenveagh lands, with an expectation to provide further details on this at full year results. Looking at slide 13, we have a robust pipeline of partnership opportunities, which provide a strong medium-term visibility underpinning the next phase of growth. With over 7,000 units and an established net developable value of approximately EUR 3 billion, there is ample opportunity that the business can capture over the medium term. An increasing proportion of the pipeline land is internally sourced, reflecting the natural progression of state-led procurement as it begins to ramp up their process on the back of policy directives.

Speaker #5: With an expectation to provide further details on these full-year results, looking at slide 13, we have a robust pipeline of partnership opportunities, which provide strong medium-term visibility underpinning the next phase of growth.

Speaker #5: With over 7,000 units and an established net developable value of approximately $3 billion, there is ample opportunity that the business can capture over the medium term.

Speaker #5: An increasing proportion of the pipeline land is internally sourced, reflecting the natural progression of state-led procurement as it begins to ramp up its process on the back of policy directives.

Stephen Garvey: Importantly, we know we have more land to bring forward as these opportunities convert, and we can continue to replenish the pipeline and sustain a healthy runway for future partnership opportunities. A meaningful share of the pipeline has planning granted, highlighting the quality and the maturity of these opportunities. As I mentioned in March, we are not going after everything in this pipeline. We are focused on what is best suited for us, which is the best product we can build efficiently and at a scale we need, and where our platform adds the most value. Partnership continues to be a key priority for the group, noting our status as a partner of choice continues. Sustainable growth as the segment continues to mature. Taking you now to slide 15, I will turn your attention to our home of the future, our manufacturing-led and innovation-driven strategy, including the rationale behind it.

Speaker #5: Importantly, we know we have more land to bring forward, so as these opportunities convert, we can continue to replenish the pipeline and sustain a healthy runway for future partnership opportunities.

Speaker #5: A meaningful share of the pipeline has planning granted, highlighting the quality and the maturity of these opportunities. As I mentioned, in March, we are not going after everything in this pipeline.

Speaker #5: We are focused on what is best suited for us, which is the best product we can build efficiently and at the scale we need.

Speaker #5: And where our platform adds the most priority for the group—noting our status as a partner of choice continues. Sustainable growth, as the segment continues to mature.

Speaker #5: Taking you now to slide 15, where I'll turn your attention to our home of the future—our manufacturing-led and innovation-driven strategy, including the rationale behind it.

Speaker #5: Firstly, taking a step back and bringing your attention towards two central costs in the industry that are trending notably upwards. The carbon tax is at €71 a ton today, legislated to reach €100 per ton by 2030, which we expect to materially affect the cost of material down the line.

Stephen Garvey: Firstly, taking a step back and bringing your attention towards two central costs in the industry that are trending notably upwards. The carbon tax is at EUR 71 a ton today, legislated to reach EUR 100 per ton by 2030, which we expect to materially affect the cost of material down the line. On the labor side, the industry employs approximately 178,000 people today and needs about 280,000 by 2030. Gross new entrances added 40,000 people. Retirees took out around 17,000. Policy and productivity measures are expected to contribute the equivalent of about 24,000 people over the next number of years. This still leaves a shortfall of over 50,000 construction workers, and that is before you account for the National Development Plan competing for the exact same workforce. The cost and labor challenges are coming, and we have assembled a structured hedge against them, which takes me onto slide 16.

Speaker #5: And on the labor side, the industry employs approximately 178,000 people today, and needs about 280,000 by 2030. Gross new entrants added 40,000 people. Retirees took out around 17,000.

Speaker #5: And policy and productivity measures are expected to contribute the equivalent of about 24,000 people over the next number of years. This still leaves a sharp fall of over 50,000 construction workers.

Speaker #5: And that is before you account for the National Development Plan competing for the exact same workforce. The cost and labor challenges are coming, and we have assembled a structured hedge against them.

Speaker #5: Which takes me on to slide 16. Our integrated system tackles these challenges head-on, reducing our construction timeline from 18 weeks to less than 12 weeks.

Stephen Garvey: Our integrated system tackles these challenges head on, reducing our construction timeline from 18 weeks to less than 12 weeks. Across a network of three factories in Carlow, Arklow, and Dundalk, spanning 400,000 square foot in total, we are leveraging a system of sequential benefits by increasing the proportion of build process that we can pre-manufacture in-house. Timber frame and light gauge steel are already embedded across the entire platform. That sets us up for implementation of our external wall system, which reduces the reliance on wet trades on site. Lighter wall unlocks our insulated raft foundation system, reducing concrete usage and lowering embodied carbon. Our roof cladding substitutes heavier finishes with modular off-site friendly systems.

Speaker #5: Across a network of three factories—in Carlisle, Arkland, and Dock—spanning 400,000 square feet in total, we are leveraging a system of sequential benefits by increasing the proportion of the build process that we can pre-manufacture in-house.

Speaker #5: Timber frame and light gauge steel are already embedded across the entire platform. That sets us up for implementation of our external wall system, which reduces the reliance on wet trades on site.

Speaker #5: Lighter wall unlocks our insulated wrap foundation system, reducing concrete usage and lowering embodied carbon. Then, our roof cladding substitutes heavier finishes with modular, offsite-friendly systems.

Speaker #5: Finally, our energy and water systems, which are designed to reduce peak consumption as well as lower the running cost for our customers, are already being implemented, with new systems rolling out into the second half of 2026.

Stephen Garvey: Finally, our energy and water systems, which are designed to reduce peak consumption as well as lower the running costs for our customers, are already being implemented with new systems rolling out into the H2 2026. As we roll out each of these systems, we are progressively increasing the pre-manufactured value or PMV, reaching 70% by 2030, if not there beforehand. Slide 17, the rollout of the system from now until 2030. Timber frame and energy systems are 100% of the portfolio today, with the new energy specification phasing in from the H2 of this year. The external wall and foundation system start with 200 units in 2027 and ramps up from there. The lightweight roof phases in from 2029. All of them at 100% of production in 2030.

Speaker #5: As we roll out each of these systems, we are progressively increasing the pre-manufactured value, or PMV, reaching 70% by 2030, if not there beforehand.

Speaker #5: Slide 17, the rollout of the system from now until 2030. Timber frame and energy systems are 100% of the portfolio today, with the new energy specification phasing in from the second half of this year.

Speaker #5: The external wall and foundation systems start with 200 units in 2027 and ramp up from there. And the lightweight roof phases in from 2029.

Speaker #5: All of them at 100% of production in 2030. The bottom row highlights the pre-manufactured value progression of these workstreams rolled out and the ramp-up.

Stephen Garvey: The bottom row highlights the pre-manufactured value progression of these work streams rolled out and the ramp up. Today, we sit at approximately 45%, with nearly half of Glenveagh's home already made indoors. By 2030, we will sit at 70%. We have built this integrated system for approximately EUR 75 million of capital, with a further EUR 15 million remaining across this year and next year. To emphasize the scale and the sophistication of this strategy, it took us about seven years to assemble. Part of its strength is that it is not easily replicated, requiring standardization, design for manufacturing, and an attractive outdoor focused land bank of scale and workforce experience. Combined with the market conditions and the government supports, we continue to view this as an exciting enhancement of our development and delivery capabilities. I am looking forward to keeping you updated as we roll out the integrated system into future updates.

Speaker #5: Today, we sit at approximately 45%, with nearly half of Glenveagh's homes already made indoors. By 2030, we'll sit at 70%. We have built this integrated system for approximately €75 million of capital, with a further €15 million remaining across this year and next year.

Speaker #5: To emphasize the scale and the sophistication of this strategy, it took us about seven years to assemble. Part of its strength is that it's not easily replicated, requiring standardization designed for manufacturing, and an attractive own-door-focused landbank of scale and workforce experience.

Speaker #5: Combined with the market conditions and government supports, we continue to view this as an exciting enhancement of our development and delivery capabilities. I'm looking forward to keeping you updated as we roll out the integrated system in future updates.

Speaker #5: With that, I'll hand you over to Conor to take you through the financials.

Stephen Garvey: With that, I will hand you over to Conor to take you through the financials.

Speaker #1: Thanks, Stephen. And good morning, everyone. I'll start with the income statement on slide 19, with a focus on the performance highlights for the half.

Conor Murtagh: Thanks, Stephen, and good morning, everyone. I will start with the income statement on slide 19 with a focus on the performance highlights for the H1. Revenue for the H1 was EUR 240 million, against EUR 342 million for the same period last year. Home building contributed EUR 64 million from 155 closed units, and partnerships EUR 176 million, up 43%, which includes approximately EUR 10 million of land sales. This step down in group revenue relates to the phasing of home building completions and the H2 waiting that we set out for you in March. As Stephen has said already, every home we expect to close in 2026 is sold, contracted, or reserved, and construction spend is 34% ahead in the period to June on similar volumes. Looking closer at the mix, average selling price was approximately EUR 402,000 in the H1 against EUR 377,000 in H1 2025, owing to site mix.

Speaker #1: Revenue for the half was €240 million, against €342 million for the same period last year. Home building contributed €64 million from 155 closed units, and partnerships €176 million, up 43%, which includes approximately €10 million of land sales.

Speaker #1: This step-down in group revenue relates to the phasing of homebuilding completions and the second-half weighting that we set out for you in March.

Speaker #1: As Stephen has said already, every home we expect to close in 2026 is sold, contracted, or reserved, and construction spend is 34% ahead in the period to June, on similar volumes.

Speaker #1: Looking closer at the mix, average selling price was approximately €402,000 in the first half, against €377,000 in H1 2025, owing to site mix. Like-for-like pricing is firm across every active site.

Conor Murtagh: Like for like pricing is firm across every active site. We expect an ASP of approximately EUR 380,000 for the full year and around EUR 350,000 on a spot basis over the medium term, as our Own Door standardized product takes an increasing share. That pricing direction is deliberate. Affordability is the strategy with a view to continuing to meet buyer needs. Group gross profit in H1 was EUR 37 million at a margin of 15.5%, against 19.5% for the same period in 2025. This movement purely reflects a higher proportion of partnerships revenue in the H1 at 73%, against 36% last year, with partnerships obviously carrying a lower margin. Underlying performance in both segments moved in the right way, however. Home building margin was 21.9%, up 50 basis points, and we expect approximately 21% for the full year, with H1 flattered by mix on low volumes.

Speaker #1: We expect an ASP of approximately €380,000 for the full year, and around €350,000 on a spot basis over the medium term, as our own standardized product takes an increasing share.

Speaker #1: That pricing direction is deliberate. Affordability is the strategy, with a view to continuing to meet buyer needs. Group gross profit in H1 was €37 million, at a margin of 15.5%, versus 19.5% for the same period in 2025.

Speaker #1: This movement purely reflects a higher proportion of partnerships revenue in the half, at 73% against 36% last year, with partnerships obviously carrying a lower margin.

Speaker #1: Underlying performance in both segments moved in the right direction, however. Home building margin was 21.9%, up 50 basis points, and we expect approximately 21% for the full year, with H1 flattered by mix on low volumes.

Speaker #1: Partnerships gross profit grew 16% to €23 million, at a 13.2% margin, in line with our expectations. Administration expenses, including depreciation, reduced 3.6% to €24 million, and I’ll come on to talk about overhead trends a bit more in a few moments.

Conor Murtagh: Partnerships gross profit grew 16% to EUR 23 million at a 13.2% margin, in line with our expectations. Administration expenses, including depreciation, reduced 3.6% to EUR 24 million, and I will come on to talk about overhead trends a bit more in a few moments. Net finance costs were EUR 12.3 million versus EUR 9.6 million last year, reflecting higher average net debt and the write-off of unamortized borrowing costs on our previous facility. We expect approximately EUR 24 million in finance costs for the full year. That leaves profit before tax of EUR 1 million. As we mentioned, we have upgraded our full year guidance from up to EUR 0.21 to at least EUR 0.21 on the back of the sold-out order book for 2026 and acceleration delivery. Moving to slide 20, this gives a picture of the progressive dilution of overheads we have seen as we scale the business.

Speaker #1: Net finance costs were €12.3 million, versus €9.6 million last year, reflecting higher average net debt and the write-off of unamortized borrowing costs on our previous facility.

Speaker #1: We expect approximately €24 million in finance costs for the full year. That leaves profit before tax of €1 million. As we mentioned, we have upgraded our full-year guidance from up to 21 cents to at least 21 cents, on the back of a sold-out order book for 2026 and accelerated.

Speaker #1: Moving to slide 20, this gives a picture of the progressive dilution of overheads we have seen as we scale the business. Alongside scale benefits, active cost management, and the deployment of AI across the business, each support our expectation of an overhead base below 5% of revenue for the full year, with further declines as a percentage of revenue to follow in future years.

Conor Murtagh: Alongside scale benefits, active cost management, and the deployment of AI across the business, each support our expectation of an overhead base below 5% of revenue for the full year, with further declines as a percentage of revenue to follow in future years. Turning to the balance sheet on slide 21. Total assets of approximately EUR 1.45 billion, up from EUR 1.25 billion at year end. Land, excluding development rights, was EUR 559 million against EUR 534 million at year end, an increase of 5%, resulting from the EUR 33 million of targeted acquisitions and limited releases due to lower home building volumes, which will all now come in H2. Work in progress increased 46% to EUR 505 million from EUR 347 million a year ago, with construction spend up 34% year on year, underpinning the outturn for 2026.

Speaker #1: Turning to the balance sheet on slide 21. Total assets of approximately €1.45 billion, up from €1.25 billion at year end. Land excluding development rights was €559 million, against €534 million at year end, an increase of 5%, resulting from the €33 million of targeted acquisitions and limited releases due to lower homebuilding volumes, which will all now come in H2.

Speaker #1: Work in progress increased 46% to €505 million from €347 million a year ago, with construction spend up 34% year on year, underpinning the outturn for 2026.

Speaker #1: Contract assets were €137 million, and the unwind of this through H2, alongside a growing forward-funded component within partnerships, structurally improves cash conversion as we continue to scale.

Conor Murtagh: Contract assets were EUR 137 million, and the unwind of this through H2, alongside a growing forward funded component within partnerships, structurally improves cash conversion as we continue to scale. The post-year end contract asset balance will be significantly below EUR 100 million. On slide 22, we take a look at net debt, which was EUR 423 million at 30 June against EUR 168 million at year end. Operating cash outflow in the half was EUR 209 million. We are guiding net debt to reduce to approximately EUR 120 million by year end, underpinned by the order book position that we talked about and the unwind of the work in progress build from the first half, which converts to cash as those homes close, in addition to the natural unwind in the contract assets and partnerships. Across WIP, land, and contract asset alone, there is approximately EUR 300 million to unwind in H2.

Speaker #1: The post–year-end contract asset balance will be significantly below €100 million. On slide 22, we take a look at net debt, which was €423 million at 30 June, against €168 million at year-end.

Speaker #1: Operating cash outflow for the half was €209 million. We are guiding net debt to reduce to approximately €120 million by year-end, underpinned by the order book position that we talked about and the unwind of the work-in-progress build from the first half, which converts to cash as those homes close, in addition to the natural unwind in the contract assets and partnerships.

Speaker #1: Across land and contract assets alone, there’s approximately €300 million to unwind in H2. From 2027, we expect homebuilding completions to be spread more evenly, relatively speaking, across the year.

Conor Murtagh: From 2027, we expect home building completions to be spread more evenly, relatively speaking, across the year. This will return net debt both on average and half year to normalized ranges and give a more consistent lower net debt position through the year. We continue to target average net debt of 15% to 25% of gross assets, with a swift transition from the upper end of the range this year to closer to the lower end of 15% in 2027. Slide 23 then sets out our evolving land bank between now and the end of 2027. As I noted, our land balance sits at approximately EUR 558 million, which includes the EUR 33 million spent in H1. We continue to remain on track to take approximately EUR 100 million out of total land investments by December 2027.

Speaker #1: This will return net debt both on average and at half year to normalize ranges, and give a more consistent, lower net debt position through the year.

Speaker #1: We continue to target average net debt of 15% to 25% of gross assets, with a swift transition from the upper end of the range this year to closer to the lower end of 15% in 2027.

Speaker #1: Slide 23, then, sets out our evolving land bank between now and the end of '27. As I noted, our land balance sits at approximately €558 million, which includes the €33 million spent in H1.

Speaker #1: We continue to remain on track to take approximately €100 million out of total land investment by December 2027. This has been facilitated not only by our well-invested position and plots, but also by rezoning, planning, and design gains, which have added land to our land bank at zero additional cost.

Conor Murtagh: This has been facilitated not only by our well invested position and plots, but also by rezoning, planning and design gains, which have added land to our land bank at zero additional cost. As the country accelerates new land zonings, we expect our strategic land portfolio to continue to contribute developable plots to the business beyond what is in the 21,000 outlined, supporting the targeted reduction in balance sheet value, as there is no additional cost of these units. Land sale guidance for this year is now approximately EUR 20 million, down from EUR 45 million, with a further EUR 25 million of land sales now anticipated in 2027. Slide 24 highlights the group's refinancing, which we completed in April, and is future-proofing the group's funding position. Total committed funding is now EUR 550 million, up from EUR 450 million in the previous facilities.

Speaker #1: As the country accelerates new land zonings, we expect our strategic land portfolio to continue to contribute developable plots to the business, beyond what is in the 21,000 outlined, supporting the targeted reduction in balance sheet value.

Speaker #1: As there is no additional cost for these units, land sale guidance for this year is now approximately €20 million, down from €45 million, with a further €25 million of land sales now anticipated in 2027.

Speaker #1: Slide 24 highlights the group's refinancing, which we completed in April, and it's future-proofing the group's funding position. Total committed funding is now €550 million, up from €450 million in the previous facilities.

Speaker #1: This is a new five-year, €450 million RCF with our existing lenders—AIB, Bank of Ireland, Barclays, and Home Building Finance Ireland—with ING now also joining the syndication.

Conor Murtagh: This is a new five-year EUR 450 million RCF with our existing lenders, AIB, Bank of Ireland, Barclays, and Home Building Finance Ireland, with ING now also joining the syndicate. Alongside it, a new EUR 100 million of seven-year private placement was completed with MetLife, which brings long dated institutional capital into the structure for the first time and further broadens the lender base. With approximately EUR 57 million of project level facilities, total funding across the group is now over EUR 600 million. The funding suite in its totality represents a step change for the business in terms of counterparty expansion, tenure, available liquidity, economics, and covenants. The private placement carries a fixed coupon out to 2033, while a five-year interest rate cap is in place on EUR 100 million of the RCF. Both combined largely de-risk the group's average debt requirements from interest rate risks in future periods.

Speaker #1: Alongside it, a new €100 million, seven-year private placement was completed, with MetLife, which brings long-dated institutional capital into the structure for the first time and further broadens the lender base.

Speaker #1: With approximately €57 million of project-level facilities in total, funding across the Group is now over €600 million. The funding suite, in its totality, represents a step change for the business in terms of counterparty expansion, tenure, available liquidity, economics, and covenants.

Speaker #1: The private placement carries a fixed coupon out to 2023, while a five-year interest rate cap is in place on €100 million of the RCF. Both combined largely de-risk the group's average debt requirements from interest rate risks in future periods.

Speaker #1: Moving to capital allocation on slide 25. The priorities of discipline and balance are unchanged, but the demands on capital are now beginning to fall rapidly.

Conor Murtagh: Moving to capital allocation on slide 25. The priorities of discipline and balance are unchanged, but the demands on capital are now beginning to fall rapidly. The land bank is fully assembled. The manufacturing program is substantially complete, with approximately EUR 15 million left to spend. Shorter build cycles and better delivery profiles means every unit delivered will benefit from greater economies of scale, and sites will absorb less working capital. Which brings us to returns. The current buyback began as a EUR 25 million program in January and was extended to EUR 50 million in May. Today, we have added a further EUR 50 million. That takes the authorized program to EUR 100 million, running to no later than 31 March 2027. On completion, approximately EUR 520 million will have been returned to shareholders since 2021, with share count down well over 40%.

Speaker #1: The land bank is fully assembled. The manufacturing program is substantially complete, with approximately €15 million left to spend. Shorter build cycles and better delivery profiles mean every unit delivered will benefit from greater economies of scale, and sites will absorb less working capital.

Speaker #1: Which brings us to returns. The current buyback began as a €25 million program in January and was extended to €50 million in May. Today, we've added a further €50 million.

Speaker #1: That takes the authorized program to €100 million, running to no later than the 31st of March 2027. On completion, approximately €520 million will have been returned to shareholders since 2021, with share count down well over 40%.

Speaker #1: Looking forward to slide 26, I want to point to key elements of our exceptionally strong 2026 outlook. This is underpinned by a resilient demand environment, clear policy visibility, and our ability to deliver the right product, principally high-quality owned-door housing in the best locations at the right price.

Conor Murtagh: Looking forward on slide 26, I want to point to key elements of our exceptionally strong 2026 outlook. This is underpinned by a resilient demand environment, clear policy visibility, and our ability to deliver the right product, principally high quality Own Door housing in the best locations at the right price. On EPS, we are now guiding full year EPS for 2026 to be at least EUR 0.21, revised from up to EUR 0.21 in March. We expect to complete more than 2,900 total equivalent units this year, and of those in excess of 1,700 will be home building units. The combined 2026 and 2027 home building output of 3,600 reflects the deliberate reallocation of some of our land bank towards partnerships, where units delivered on Glenveagh land are forward funded and capital light.

Speaker #1: On EPS, we are now guiding full-year EPS for 2026 to be at least 21 cents, revised from up to 21 cents in March.

Speaker #1: We expect to complete more than 2,900 total equivalent units this year, and of those, in excess of 1,700 will be home building units. The combined 2026 and 2027 home building output of 3,600 reflects a deliverable reallocation of some of our land bank towards partnerships, where units delivered on Glenveagh land are forward-funded and capital light.

Speaker #1: As these schemes convert, the Group sees scope for partnerships to outperform its €60 million average annual gross profit guidance, with a corresponding acceleration in Group return on capital employed.

Conor Murtagh: As these schemes convert, the group sees scope for partnerships to outperform its EUR 60 million average annual gross profit guidance, with a corresponding acceleration in group return on capital employed. The segment is on track to deliver its guided annual profit of in excess of EUR 60 million in 2026, with a further 1,000 unit pipeline in Glenveagh sites providing visibility into future periods. Home building gross margin is expected to remain at approximately 21%, supported by standardization, scale benefits, and the site economics embedded in our portfolio. Our land sales, as mentioned previously, are now expected to be approximately EUR 20 million for 2026, with a further EUR 5 million in 2027. We remain on track to take EUR 100 million out of the balance sheet value invested in land by 2027.

Speaker #1: The segment is, in fact, to deliver its guided annual profit of in excess of €60 million in 2026, with a further 1,000-unit pipeline on Glenveagh sites, providing visibility into future periods.

Speaker #1: Home building gross margin is expected to remain at approximately 21%, supported by standardization, scale benefits, and the site economics embedded in our portfolio. Our land sales, as mentioned previously, are now expected to be approximately €20 million for 2026, with a further €5 million in 2027, and we remain on track to take €100 million out of the balance sheet value invested in land by 2027.

Speaker #1: And lastly, net debt is expected to materially reduce to approximately €120 million by year-end, with the business having entered a structurally lower capital phase of delivery from Q3 of this year.

Conor Murtagh: Lastly, net debt is expected to materially reduce to approximately EUR 120 million by year end, with the business having entered a structurally lower capital phase of delivery from Q3 of this year. Thanks again for joining this morning, and I will pass you back to Stephen for his concluding remarks.

Speaker #1: Thanks again for joining this morning, and I'll pass you back to Stephen for his concluding remarks.

Speaker #2: Thank you, Conor. Turning to slide 28, I want to conclude today's call with three key things. First, the market opportunity is real and is sustained.

Stephen Garvey: Thank you, Conor. Turning to slide 28, I want to conclude today's call with three key things. First, the market opportunity is real and it is sustained. Structural under supply, particularly for affordable product, record employment, real earnings growth, and a policy framework that is now largely built. Secondly, our sector leading platform is built to capture that opportunity at scale and serve that demand with high demand for Own Door homes at accessible prices. A fully assembled land bank that carries us all the way to 2030, with planning secured or lodged on approximately 65% of it. We have three factories and an integrated system that reduces our time on site, with greater efficiencies and margin expected as we pass through the rollout phases from now to 2030. Our partnership business is now operating at scale, with a pipeline of approximately EUR 3 billion.

Speaker #2: Structural supply, particularly for affordable product, record employment, real earnings growth, and a policy framework that is now largely built. Secondly, our sector-leading platform is built to capture that opportunity at scale.

Speaker #2: And served that the demand, with high demand for owned-door homes at accessible prices. A fully assembled land bank that carries us all the way to 2030, with planning secured or lodged on approximately 65% of it.

Speaker #2: We have three factories and an integrated system that reduces our time on site, with greater efficiencies and margin expected as we pass through the rollout phases from now to 2030.

Speaker #2: And our partnership business is now operating at scale, with a pipeline of approximately €3 billion. This has been assembled over seven years and is not easily replicated.

Stephen Garvey: This has been assembled over seven years and is not easily replicated. Third, that platform is delivering strong, tangible outcomes. We are sold out for 2026. We have upgraded both delivery and earnings guidance this morning. We have doubled the buyback to EUR 100 million, and we expect the business to be highly cash generative into the H2 of the year. The strategy is working, and we are confident in our ability to sustain this momentum. Before we open the lines for any questions, I would as always like to take this opportunity to thank our entire team at Glenveagh and all our partners across the industry and the supply chain for their commitment and hard work through the H1 of the year.

Speaker #2: And third, that platform is delivering strong, tangible outcomes. We are sold out for 2026. We have upgraded both delivery and earnings guidance this morning.

Speaker #2: We have doubled the buyback to €100 million, and we expect the business to be highly cash-generative into the second half of the year.

Speaker #2: The strategy is working, and we are confident in our ability to sustain this momentum. Before we open the lines for any questions, I would, as always, like to take this opportunity to thank our entire team at Glenveagh, and all our partners across the industry and the supply chain for their commitment and hard work through the first half of the year.

Speaker #2: Together, we are realizing our vision and the state's ambition that everyone should have access to—and an opportunity to create—value, high-quality homes in flourishing communities across Ireland.

Stephen Garvey: Together, we are realizing our vision and the state's ambition that everyone should have access and an opportunity to great value, high-quality homes and flourishing communities across Ireland. Thank you for taking the time to join us this morning. I will now pass you back to the operator for any questions you may have. Thank you.

Speaker #2: Thank you for taking the time to join us this morning. I will now pass you back to the operator for any questions you may have.

Speaker #2: Thank you.

Speaker #3: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

Operator: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. The next question comes from Colin Sheridan from Davy. Please go ahead.

Speaker #3: The next question comes from Colin Sheridan from Davy. Please go ahead.

Speaker #4: Hi, good morning, guys. Thanks for the presentation, and congratulations on a great set of results. I've got three myself, if that's all right. The first two are actually on the land market.

Colin Sheridan: Hi. Good morning, guys. Thanks for the presentation, and congratulations on a great set of results. I've got three myself, if that's all right. The first two are actually on the land market. Maybe just comment a little bit on what you're seeing going on in the land market and maybe a little bit just in relation to the zoning upside that you've seen during the course of H1, which must be pretty pleasing, and to what extent there might be further upside to be gained from the strategic land bank on that front. The second bit on land is just on the reduction in values out to the end of 2027. Conor, you referred to the EUR 100 million coming out. The level that you're going to, does that feel even more sustainable than you had been talking about previously?

Speaker #4: Maybe if you could just comment a little bit on what you're seeing going on in the land market, and maybe also in relation to the zoning upside that you've seen during the course of H1, which must be pretty pleasing, and to what extent there might be further upside to be gained from the strategic land bank on that front.

Speaker #4: The second bit on land is just on the reduction in values out to the end of 2027. I mean, Conor, you referred to the €100 million.

Speaker #4: Coming out, I mean, the level that you're going to—does that feel even more sustainable than you had been talking about previously? And the last one, then, is just on the partnerships pipeline.

Colin Sheridan: The last one then is just on the partnerships pipeline. It's obviously at a similar level as it was back earlier in the year, but it looks like there's been a lot of progress made within the categories you look at it. Does it feel a bit more real now, that pipeline, in terms of being closer to bringing stuff into the land bank for real? That's it for me.

Speaker #4: I mean, it's obviously at a similar level as it was back earlier in the year, but it looks like there's been a lot of progress made within the categories when you look at it.

Speaker #4: Does it feel a bit more real now, that pipeline, in terms of being closer to bringing stuff into the land bank for real? That's it from me.

Speaker #2: Thanks, Colin. Good morning. Yeah, land—I suppose just what we're seeing out there at the moment is, there is more land coming into the system.

Stephen Garvey: Thanks, Colin. Good morning. Land, I suppose just what we are seeing out there at the moment is there is more land coming into the system. I will talk about zoning in a second, but there probably is a realization with landowners now that the RZLT is becoming real and there are opportunities to sell on, so that there is an element of land coming into the system. Obviously, we are at a low base because of the National Planning Framework restricted the amount of availability of land. As the minister noted during the summer, the government artificially kept the land market low and did not realize the consequence of that, and now we are reversing that position. I suppose they are instructing local authorities to really zone up. We are seeing that firsthand.

Speaker #2: I'll talk about zoning in a second, but there probably is a realization with landowners now that the RZLT is becoming real, and there are opportunities to sell on.

Speaker #2: So there is an element of land coming into the system. Obviously, we're at a low base because the national planning framework restricted the amount of availability of land.

Speaker #2: As the minister noted during the summer, the government artificially kept the land market low and didn't realize the consequences of that. And now we're reversing that position.

Speaker #2: So I suppose they are instructing local authorities to really zone up, and we're seeing that firsthand, as we've said. We've seen some of our strategic land convert from agricultural base to actually zoned residential land, and we've seen that gain.

Stephen Garvey: As we said, we have seen some of our strategic land convert from agricultural base to actually zoned residential land, and we have seen that gain. I think I quoted in March, or maybe it is a bit longer than that we expected somewhere between 3,000 and 4,000 units would come from our strategic land bank over the next number of years. I think where the positive step change will really happen is when local authorities enact 10-year development plans. That will be a sea change because in that one stroke of the pen, somewhere between 500,000 and 600,000 will enter the system because they will be going to 10-year life cycles. Our view is that kind of happens from around mid-2028 into 2029. We see a real uptick in the availability of land.

Speaker #2: I think I quoted in March, or maybe it's a bit longer than that, that we expected somewhere between 3,000 and 4,000 units would come from our strategic land bank over the next number of years.

Speaker #2: I think where the positive step change will really happen is when local authorities enact 10-year development plans. That will be a sea change, because in that one stroke of the pen, somewhere between 500,000 and 600,000 will enter the system because they'll be going to a 10-year lifecycle.

Speaker #2: So our view is that kind of happens from around mid-2028 into 2029. We see a real uptick in the availability of land. And I suppose what we called out this last week in our Horizons report was we're in favor of RZLT, to, I suppose, incentivize landowners to bring land into the system.

Stephen Garvey: I suppose what we called out last week in our Horizons report was we are in favor of RZLT to, I suppose, incentivize landowners to bring land into the system. So we see the availability of land in the coming years not being a challenge. For ourselves, we are not in the land market for the foreseeable future. It is very small. It is acquisitions that are adjacent to existing opportunities that we have. So we are not really an active buyer, and we will remain that way probably now well into 2028. On the EUR 100 million, and that reduction in value, Colin. So, as we said, we had overinvested intentionally in land at the end of 2024 because we saw the shortages.

Speaker #2: So, we see the availability of land in the coming years not being a challenge. For ourselves, we're not in the land market for the foreseeable future.

Speaker #2: It's very small. It's acquisitions that are adjacent to existing opportunities that we have. So we're not really an active buyer, and we will remain that way probably now well into 2028.

Speaker #4: On the ¥100 million, that reduction in value, Colin, yeah. So as we said, we'd overinvested intentionally in land at the end of '24 because we saw the shortages.

Speaker #2: I think we're back online there. Apologies, we lost everybody. So, what I was saying there—so, we'd intentionally overinvested in land, and what you're seeing now is a return to normality.

Conor Murtagh: I think we are back online there. Apologies, we lost everybody. So what I was saying there, so we had intentionally overinvested in land, and what you are seeing now is a return to normality. I suppose those rezonings that you are seeing coming through the system, that demonstrates that the reduction in land is sustainable and that we can continue to operate the business at current levels and indeed grow volume, at the same time as reducing that land balance to 450 and below.

Stephen Garvey: I think we are back online there. Apologies, we lost everybody. So what I was saying there, so we had intentionally overinvested in land, and what you are seeing now is a return to normality. I suppose those rezonings that you are seeing coming through the system, that demonstrates that the reduction in land is sustainable and that we can continue to operate the business at current levels and indeed grow volume, at the same time as reducing that land balance to 450 and below.

Speaker #2: And I suppose those rezonings that you're seeing coming through the system, that demonstrates that the reduction in land is sustainable and that we can continue to operate the business at current levels, and indeed grow volume, at the same time as reducing that land balance to 450 and below.

Speaker #1: Just on the last one, Colin, on partnerships—as we've called out, obviously—we've made a lot of progress as the year has evolved on our existing partnerships.

Stephen Garvey: Just on the last one, Colin, on partnerships, as we have called out, obviously, we have made a lot of progress as the year has evolved on our existing partnerships. I think there are three step changes. Obviously, partnerships has really matured, and you are seeing that revenue generate in the H1, and you will obviously see it a lot stronger into the H2 of the year. I think more importantly is the pipeline of partnerships. Firstly, our own portfolio is now a lot more active. We have gotten a lot more inbounds from both local authorities, approved housing bodies, and the Land Development Agency to partner up for cost rental, social housing, and affordable purchase. As we have identified, we are in discussions on 1,000 units, and we will update at full year results. We have a bigger pipeline beyond that.

Speaker #1: I think there are three step changes. Obviously, Partnerships has really matured, and you're seeing that revenue generate in the first half, and you'll obviously see it a lot stronger into the second half of the year.

Speaker #1: I think, more importantly, is the pipeline of partnerships. So, firstly, our own portfolio is now a lot more active; we're getting a lot more inbounds from both local authorities, approved housing bodies, and the Land Development Agency to partner up for cost rental, cost rentals, social housing, and affordable purchase.

Speaker #1: As we've identified, we're in discussions on 1,000 units, and we'll update on full-year results. But we have a bigger pipeline beyond that, so we're probably really positive on our own existing portfolio and what it can deliver now on partnerships.

Stephen Garvey: Probably really positive on our own existing portfolio and what it can deliver now on partnerships. Beyond that, I think what you would have seen from the early variations that have happened in local authorities, a lot of the land that was zoned in some of the local authorities is actually state land. That will start to come into the system towards the back end of 2027. We have identified the opportunities there. Yeah, very positive towards where partnerships is and then ultimately where partnerships can grow over the next number of years.

Speaker #1: Beyond that, I think what you would have seen from the early variations that have happened in local authorities is that a lot of the land that was zoned in some of the local authorities is actually state land.

Speaker #1: And that will start to come into the system towards the back end of 2027. We've identified the opportunities there, so overall, we're very positive about where partnerships is.

Speaker #1: And then, ultimately, where partnerships can grow over the next number of years.

Speaker #3: The next question comes from Shane Carberry from Goodbody. Please go ahead.

Operator: The next question comes from Shane Carberry from Goodbody. Please go ahead.

Speaker #1: Thank you very much for the presentation. Two if I can, please. The first one is just in regards to, kind of following on, on the partnerships land bank.

Shane Carberry: Thank you very much for the presentation. Two, if I can, please. The first one is just in regards to following on on the partnerships land bank. Would you be able to give us a little bit more color around the transition that you said you are seeing from home building land into partnerships land, and how significant an opportunity that could be in terms of the return on capital employed story? The second one then, just regards to obviously the H2 skew was well documented. Could you give us a little bit of color, though, maybe in terms of current trading and how Q3 has evolved thus far in terms of us thinking about that H2 skew? Thank you very much.

Speaker #1: Would you be able to give us a little bit more, Colin, around the transition that you said you’re seeing from homebuilding land into partnerships land, and how significant an opportunity that could be in terms of the return on capital employed story?

Speaker #1: The second one then, just with regards to obviously the H2 SKU, as well documented, could you give us a little bit of color though, maybe in terms of current trading and how Q3 has evolved thus far, in terms of us thinking about this kind of H2 SKU?

Speaker #1: Thank you very much.

Stephen Garvey: Hiya, Shane. Good morning. Yeah, to give context of where we are in, I suppose, Q3 is we would have closed more in July than we would have for the H1 of the year, and we closed more in August than we did in July. I suppose we have the positive momentum. It was a strategic decision. We did flag it early in the year that obviously we were going to invest. A number of things that we have rolled out is just examples of this is we have rolled the new energy system out onto some of our sites. We were letting that bed in. The interesting thing is we are seeing a real positive uptake with the actual buyer out there on the ground because of how energy efficient our product is.

Speaker #2: How are you, Shane? Good morning. Yeah, no, I know. Just to give context of where we are in, I suppose, Q3—we would have closed more in July than we would have for the first half of the year, and we closed more in August than we did in July.

Speaker #2: So, I suppose we have the positive momentum. It was a strategic decision; we did flag it early in the year that, obviously, we were going to invest. A number of things that we've rolled out are just examples of this— we’ve rolled the new energy system out onto some of our sites.

Speaker #2: We were letting that bed in. The interesting thing is we're seeing a real positive uptick with the actual buyer out there on the ground because of how energy efficient our product is.

Speaker #2: Your utility bills are cut in half, and there's a real buy-in from the consumer. We're seeing strong upticks, so it's about letting all that bed in. But we're in a good place to monetize, as we've said, into H2.

Stephen Garvey: Your utility bills are cut in half, and there is a real buy-in from the consumer, and we are seeing strong uptake. It is letting all that bed in. But we are in a good place to monetize, as we have said, into H2. Most importantly, the order book is there and the demand is there. I think particularly where we are seeing the strongest demand at the moment is particularly for Own Door product. So where we standardize product on standardized sites, we are seeing real buy-in there, and that is positive. The other one.

Speaker #2: Most importantly, the order book is there, and the demand is there. I think, particularly, where we're seeing the strongest demand at the moment is for our own product.

Speaker #2: So, where we've standardized product and standardized sites, we're seeing real buy-in there, and that's positive. The other one—

Conor Murtagh: Yeah, partnerships return on capital then.

Speaker #4: Yeah, partnerships' return on capital then.

Speaker #2: Yeah, where we're really seeing the benefits on the partnership side is, say, where we have a scheme of maybe 1,000 units now. And that 1,000 units, we might have said, would have been a five-year delivery pipeline.

Stephen Garvey: Yeah, I will let you on the return on capital. I suppose where we are really seeing the benefits on the partnership side is, so say where we have a scheme of maybe 1,000 units now, and that 1,000 units we might have said would have been a five-year delivery pipeline. Introducing partnerships onto that site is bringing that timeline maybe back to a three-year timeline. So you are returning your capital at a faster turn on your land. So instead of being five, you are bringing it into three. But then also in your WIP profile. So, a 200-unit site has a EUR 40 million WIP. You are changing the WIP profile of that site from 40 maybe to EUR 25 million by introducing partnerships. So there is massive wins for that, I suppose. And where we really see the wins into that is that 1,000 units that we are talking at the moment, monetizing that into 2027.

Speaker #2: Introducing partnerships onto that site is bringing that timeline maybe back to a three-year timeline. So you're returning your capital at a faster turn on your land.

Speaker #2: So instead of being five, you're bringing it into three. But then also on your WIP profile, a 200-unit site has a €40 million WIP.

Speaker #2: You're changing the WIP profile of that site from €40 million, maybe to €25 million, by introducing partnerships. So there's massive wins for that, I suppose.

Speaker #2: And where we really see the wins in that is that 1,000 units that we're talking about at the moment—monetizing that into 2027—it actually puts us in a really advantageous position from a capital space in that regard.

Stephen Garvey: It actually makes us in a really advantageous position from a capital basis into that. If you want to talk about the return on.

Speaker #2: If you want to talk about the return.

Speaker #4: Yeah, no, that's exactly it in terms of accelerating the use of our own land bank. But I think more importantly, it de-risks the delivery profile and that business—not only the €60 million gross profit, but also gives us visibility on growing that into the future.

Conor Murtagh: No, that's exactly it in terms of accelerating the use of our own land bank. But I think more importantly, it de-risks the delivery profile in that business, not only of the EUR 60 million gross profit, but also gives us visibility on growing that into the future. So I think that's an important benefit as well. Obviously, with the pure state lands, you're reliant on the timing of master plans, zoning, them going to tender. The benefit of having partnerships on our own land means that it's much more within our control, and the product we deliver on it is exactly the product that we're comfortable building. Very pleased with the direction of travel there.

Speaker #4: So I think that's an important benefit as well. Obviously, with the pure state land, you're reliant on the timing of master plans, zoning, and then going to tender.

Speaker #4: The benefit of having partnerships on our own land means that it's much more within our control, and the product we deliver on it is exactly the product that we're comfortable building.

Speaker #4: So, very pleased with the direction of travel there.

Speaker #3: The next question comes from Harry Goade from Barenberg. Please go ahead.

Operator: The next question comes from Harry Goad from Berenberg. Please go ahead.

Speaker #5: Yeah, hi, good morning. I've got two questions, please. Firstly, you made some comments on build cost inflation this year, but how do you feel that trends into 2027?

Harry Goad: Yeah. Hi, good morning. I've got two questions, please. Firstly, I know you made some comments on build cost inflation for this year, but how do you feel that trend into 2027, do you expect some sort of alleviation on those pressures? Secondly, just thinking about labor. There's an interesting chart you've got in your deck about the potential shortfall in the workforce. How does that play into your thinking about operating the business at or larger scale as you head through the latter years of the decade? Thank you.

Speaker #5: Do you expect some sort of alleviation of those pressures? And then secondly, just thinking about labor, there's an interesting chart you've got in your deck about the sort of shortfall, or potential shortfall, in the workforce.

Speaker #5: How does that play into your thinking about operating the business at a larger scale as you head into the last years of the decade?

Speaker #5: Thank you.

Speaker #2: Thank you, Harry, and good morning. Yeah, obviously geopolitical events are making it very volatile out there, particularly on the energy side. I think what we've probably seen during the year is surcharges on costs, particularly with haulage and particularly with anything that's energy-intensive.

Stephen Garvey: Thank you, Harry, and good morning. Yeah, too, obviously, geopolitical events are making it very volatile out there, particularly on the energy side. I think what we've probably seen during the year is surcharges on costs, particularly with haulage, particularly with anything that's energy intensive. We've seen surcharges particularly being the thing of the moment. I suppose suppliers are going to see how that evolves. I think for ourselves and where we see ourselves positioned is obviously we're well hedged. A lot of our procurement is done and any gains that we have there can offset obviously the challenges that are being seen from the energy side. I think more advantageous for us is obviously the standardized product, but then the manufacturing element. By controlling your timber frame, by controlling your energy system, then obviously introducing our new wall system.

Speaker #2: We've seen surcharges, particularly being the thing of the moment, and I suppose suppliers are going to see how that evolves. I think for ourselves, and where we see ourselves positioned, is obviously we're well hedged.

Speaker #2: An awful lot of our procurement is done, and any gains that we have there can obviously offset the challenges that are being seen from the energy side.

Speaker #2: I think more advantageous for us is, obviously, the standardized product. But then the manufacturing element—by controlling your timber frame, by controlling your energy system, and then, obviously, introducing our new wall system.

Speaker #2: These are all benefits that can control or reduce our costs into the future. So I suppose for Glenveagh, we've more tools than most to navigate that.

Stephen Garvey: These are all benefits that can control or reduce our cost into the future. I suppose for Glenveagh, we've more tools than most to navigate that. Where we really see the gains across the portfolio is timelines. Because we are so integrated in the process now, it's the timelines on site. Where a program might run for maybe 60 months, if you can take six months out of that program, it's a massive saving for us because we're just more efficient with the delivery because we control that supply chain. Obviously that allows us to really navigate any challenges that potentially others can't navigate. On the labor side, we would have flagged this for the last couple of years. I think people have to realize that obviously the government are making a big investment in housing.

Speaker #2: Where we really see the gains across the portfolio is timelines. Because we are so integrated in the process now, it's the timelines on site.

Speaker #2: So where a program might run for maybe 60 months, if you can take six months out of that program, it's a massive saving for us because we're just more efficient with the delivery, because we control that supply chain.

Speaker #2: And obviously, that allows us to really navigate any challenges that potentially others can't navigate. On the labor side, and we would have flagged this for the last couple of years, I think people have to realize that, obviously, the government are making a big investment in housing.

Speaker #2: They want to see targets increased, and they want to see the delivery happening. They're giving us as many tools as possible to do that, but there is a recognition there that, also on top of this, there's a massive investment from government in relation to the National Development Plan.

Stephen Garvey: They want to see targets increased, they want to see the delivery happening. They're giving us as much tools as possible to do that. There is a recognition there that also on top of this, there's a massive investment from government in relation to the National Development Plan. So infrastructure, sewerage upgrade, water upgrade, all of these things are going to demand a greater workforce. Again, that was a strategic decision in our business to invest in the vertical integration to allow us to be more efficient when those challenges will come. I think in Conor's notes, he said, our house price can trend down from here, not up, and that's a real advantage. I'm not sure the rest of the competition have those tools to play with. So we're in a really, not in a comfortable position.

Speaker #2: So, infrastructure, storage upgrade, water upgrade—all of these things are going to demand a greater workforce. Again, that was a strategic decision in our business: to invest in the vertical integration to allow us to be more efficient when those challenges would come.

Speaker #2: I think in Conor's notes, he said our house price can trend down from here, not up. That's a real advantage. I'm not sure the rest of the competition have those tools to play with.

Speaker #2: So we're in a really comfortable—not in a comfortable position. We're really happy with where we're positioned, and obviously we'll navigate whatever the challenges are in front of us.

Stephen Garvey: We're really happy where we're positioned, obviously we'll navigate whatever the challenges are in front of us.

Speaker #4: Yeah, and to follow up on the BCI point, I suppose it's very much in line with expectations and with what we thought would be the case in March and in May.

Conor Murtagh: Yeah. To follow up on the BCI point, I suppose very much in line with expectations with where we thought would be in March and in May. I suppose what we are seeing from suppliers is given we are one of the only two suppliers of scale in the Irish market, we are the last people that suppliers want to call with price increases. I would say on that is line ball with where we were expecting it to be.

Speaker #4: And I suppose what we're seeing from suppliers is, given we're one of only two suppliers of scale in the Irish market, we're the last people that suppliers want to call with price increases.

Speaker #4: So, what I'd say is that it's line-ball with where we were expecting it to be.

Speaker #3: As a reminder, if you wish to ask a question, please dial the pound key followed by five on your telephone keypad. There are no more questions at this time, so I will hand the conference back to the speakers for any closing comments.

Operator: As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Stephen Garvey: Thank you very much, everyone, for joining the call. We look forward to catching up with you over the next week or so. Thank you.

Speaker #2: Thank you very much, everyone, for joining the call. And we look forward to catching up with you over the next week or so. Thank you.

Operator: The host has ended this call. Goodbye.

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