Melnick Desenvolvimento Imobiliário (MELK3) investor relations material

Executive summary

• Q3 net revenue was R$199.1m and parent net income R$6.0m; 9M revenue was R$790.7m, down 2.0% YoY, and controlling-shareholder net income was R$65.1m, down 16.2%.

• Q3 attributable launches were R$22.9m, net sales R$91.2m and delivered PSV R$88.2m; net debt ended at R$496.0m.

Financial highlights

• Q3 revenue declined 18.3% YoY and 26.6% QoQ; gross profit was R$50.0m, down 18.6% YoY.

• Adjusted gross margin excluding financing was 34.8% in Q3, up 4.2 p.p. YoY; 9M margin was 30.9%, up 1.6 p.p.

• 9M revenue was R$790.7m versus R$807m in 9M25; consolidated net income was R$100.7m, including R$65.1m attributable to controlling shareholders.

• Q3 parent net income was R$6.0m versus R$25.0m YoY; adjusted EBITDA was R$21.0m, with 10.56% margin.

• 9M adjusted EBITDA was R$123.2m, with 15.58% margin; 9M parent net income was R$65.1m versus R$77.7m.

Outlook and guidance

• Management expected cash generation to begin next quarter as the five-quarter investment cycle concluded; no specific amount was given.

• Launches are to remain selective, with gradual expansion next year; Open’s affordable projects are expected to support ROE.

• Estimated delivery PSV is R$1.179bn in 2027, R$1.168bn in 2028 and R$891m in 2029; forward targets depend on assumptions and are subject to risks.

• Management said cash generation and available credit lines were sufficient to fund operations, the business plan and obligations.