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Echo Investment (ECH) investor relations material
Echo Investment Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Strategic focus on disposing of commercial assets, reducing equity in the sector, and reinvesting in high-potential Warsaw CBD office projects and the growing living sector, including residential for sale, PRS, and student housing.
Major transactions include the sale of City 2 (EUR 31m), a 30% share in Towarowa 22/Office House (EUR 160.5m valuation), and a landmark PRS deal for 18 projects valued at PLN 2.4 billion.
Record-breaking 34% year-over-year increase in apartment sales in H1 2025, with over 1,100 units sold and a robust landbank of 12,600 units.
Ongoing shift in the balance sheet with increased residential inventory, reduced commercial investments, and lower debt, supported by strong cash position of PLN 291 million.
Student housing platform expanded, with 1,200 beds delivered, 500 under construction, and a target of 5,000 beds in 3–5 years.
Financial highlights
H1 2025 sales revenue was PLN 464.9 million; Q2 2025 revenue was PLN 370.3 million, with gross margin on residential sales at 35%.
Q2 2025 net loss attributable to equity holders was PLN -113.6 million; H1 2025 net loss was PLN 199.1 million, mainly due to fair value adjustments on commercial asset sales.
Adjusted operating profit for Q2 2025 was PLN 59.9 million, reflecting underlying business strength.
Net debt ratio stands at 38.8% as of 30.06.2025, with a target to reduce it closer to 30–35% as commercial assets are sold.
Cash flow from operating activities was PLN 110.4 million, a significant improvement from negative PLN 406.3 million in H1 2024.
Outlook and guidance
Majority of 2025 residential handovers concentrated in Q3 and Q4, with over 80% already sold and significant profit recognition expected.
Continued growth in residential for sale, PRS, and student housing, with a target of 5,000 student beds in 3–5 years.
Ongoing investment in Warsaw CBD office projects and selective regional office developments.
The group expects continued strong demand in the residential sector, supported by macroeconomic factors such as lower interest rates and government support programs.
Risks include limited land supply, potential wage growth slowdown, and persistent high interest rates affecting mortgage access.
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