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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.
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Q2 2025 earnings summary18 Sep, 2025

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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