Atal S.A. (1AT) Q4 2024 earnings summary

Executive summary

• Operations expanded to eight locations in Poland, with Szczecin added in 2024 and 51 ongoing investments at year-end, covering 10,545 flats and 42 planned investments for over 11,000 flats.

• In 2024, 2,460 flats were handed over (down 12% year-over-year), and flats sold ranged from 2,068 to 2,833, reflecting a 27% decrease in some reports due to the end of government subsidy programs and market anticipation for new schemes.

• The company started construction on 27 projects (5,141 flats) and launched sales for 24 investments (4,739 flats) in 2024.

• Land purchases in 2024 totaled between PLN 336 million and PLN 373 million, with a land bank supporting 623,000 sqm to 687,670 sqm of usable area and an average price per sqm at PLN 1,632.

Financial highlights

• Consolidated revenues for 2024 were PLN 1,486.9 million, nearly flat year-over-year (down 1%), with net profit at PLN 295.6 million (down 13%).

• Net margin was 19.9% (down 2.9 percentage points year-over-year), among the highest in the market; gross margin on sales was 23.7% (down from 27.6%).

• Operating income fell 18% to PLN 331.1 million; EPS was PLN 6.84, down from PLN 8.42.

• Net debt ratio stood at 0.16 at year-end, up from -0.09, with liabilities up 12% and current assets up 8% due to increased inventory.

• Inventory increased to PLN 3,384 million, reflecting a larger offer and ongoing investments.

Outlook and guidance

• Targeting sales of at least 2,500 flats in 2025, with expectations of stronger sales in the second half if interest rates drop.

• Preparing over 5,700 flats for 2025, with actual offer size dependent on administrative decisions and market demand.

• Projected handovers for 2025 are 3,193 flats (44% contracted), and over 6,000 flats planned for 2026 (13% already sold).

• Net margin guidance for 2025 is 21%, with gross margin around 27%.