Consorcio Ara SAB de CV (ARA) Q2 2026 earnings summary

Executive summary

• Achieved robust financial and operational performance in H1 2026, with revenues up 17.1% and EBITDA up 15.2% year-over-year, and net income rising 3.5%.

• Second quarter 2026 revenues rose 11.4% year-over-year to MXN 2.31 billion, with 1,549 homes sold at an average price up 17%.

• Positive free cash flow generation, with H1 2026 free cash flow at MXN 378.9 million.

• Dividend of MXN 200 million paid, yielding 4.4% on 2025 closing price.

• Maintained a solid financial structure with healthy leverage ratios.

Financial highlights

• H1 2026 revenues reached MXN 4.59 billion (+17.1% YoY); H1 2026 EBITDA was MXN 624.4 million (+15.2% YoY).

• H1 2026 net income was MXN 363.8 million (+3.5% YoY); Q2 2026 net income was MXN 162.3 million (7% margin).

• Q2 2026 housing revenues were MXN 2.24 billion (+12.3% YoY), with an average home price of MXN 1,446,000 (+17%).

• 3,140 homes sold in H1 2026 (+2.8% YoY); 1,549 homes sold in Q2 2026 (-4.0% YoY).

• Free cash flow in H1 2026 was MXN 378.9 million, or MXN 259.5 million after interest.

Outlook and guidance

• Expect recovery in the affordable entry-level segment in H2 2026, targeting 28%-30% of revenues from this segment by year-end.

• Gross margin expected to recover to around 26% by year-end, supported by new project deliveries.

• Management remains confident in achieving 2026 targets, focusing on disciplined execution, profitability, cash flow, and value creation.

• Two new projects in Mérida to begin in 3Q26, expanding geographic reach.