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MRV Engenharia e Participações (MRVE3) investor relations material
MRV Engenharia e Participações Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Industry environment is highly favorable, with federal, state, and local government support boosting customer purchasing power and affordable housing demand, with Minha Casa Minha Vida enhancements ongoing.
Operational KPIs and improvements in sales, production, and land acquisition are at historical bests, with higher sales volume, price increases above inflation, and cost controls.
Company is positioned as a leader in affordable housing, leveraging a strong land bank and efficient swaps to control cash exposure and enhance margins.
Net revenue reached BRL 2.53 billion in 2Q25, up 15.9% from 1Q25 and 20.8% year-over-year, with gross margin at 30.2% and adjusted net profit of BRL 125 million, a 386% increase year-over-year.
US operations (Resia) faced large impairments and net losses due to asset divestments and macroeconomic headwinds.
Financial highlights
Launches reached BRL 3.5 billion, up 19% from Q1 2025 and 24% from the previous quarter; net sales rose 6% year-over-year.
Gross profit rose 40% year-over-year to BRL 762 million, with gross margin up 4.1 p.p. to 30.2%.
Adjusted net income was BRL 125 million, five times higher than Q1 2025 and up 65% year-over-year.
EBITDA reached BRL 467 million, up 35% sequentially and 63% year-over-year.
Cash generation was impacted by BRL 45 million due to CEF criteria changes and BRL 77 million from delayed unit transfers.
Outlook and guidance
Second half expected to see higher transfers than production, driving cash generation and supporting guidance.
Guidance for net income and cash generation reaffirmed, with expectations of margin recovery and increased sales.
Management expects further operational and financial improvements as branding and process investments phase out and state program transfer blockages are resolved.
Strong pipeline of launches with healthy margins anticipated, especially in Q3.
Resia divestment and deleveraging plan is underway, targeting US$800 million in asset sales through 2026.
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