Construtora Tenda (TEND3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$ 865.2 million in 1Q25, up 16.2% year-over-year and 1.7% sequentially, driven by higher sales volume and increased average unit price.

• Record-high quarterly net income of R$ 85.5 million, up 301.1% from 4Q24, with consolidated adjusted gross margin at 34.0%, a 7.1 p.p. improvement year-over-year.

• Tenda segment achieved record adjusted gross margin of 36.7%, while Alea segment faced margin pressure but showed sales recovery.

• Strong operational performance with record first-quarter gross sales (R$ 1,213.4 million), net pre-sales (R$ 1,088.3 million), and launches (R$ 914.5 million), all up over 12% year-over-year.

• Favorable market conditions for low-income housing, supported by public policy and recent MCMV program updates.

Financial highlights

• Adjusted gross profit was R$ 291.0 million, up 45.5% year-over-year; adjusted EBITDA reached R$ 152.9 million, up 50.5% year-over-year, with margin at 17.7%.

• Net income for 1Q25 was R$ 85.5 million, with Tenda segment net income at R$ 104.9 million and Alea posting a net loss of R$ 19.4 million.

• Consolidated adjusted gross margin was 34.0%, with Tenda segment at 36.7% and Alea at 6.8%.

• Debt: gross debt at R$ 849.1 million, net debt at R$ 267.6 million, and net corporate debt/equity at -1.8%.

• Operational cash generation for Tenda was R$ 3.6 million, with consolidated operational cash consumption at R$ 3.5 million; excluding non-recurring effects, operational cash generation would have been R$ 91.6 million.

Outlook and guidance

• 2025 guidance: Tenda segment adjusted gross margin between 34.0% and 36.7%, net pre-sales between R$ 3.8–4.0 billion, and net income between R$ 360–400 million.

• Alea segment guidance: adjusted gross margin between 20–24%, net pre-sales R$ 700–800 million, and net income up to R$ 20 million.

• Net pre-sales in 1Q25 reached 26% of the lower bound of 2025 guidance.

• Expectation of higher concentration of launches and sales in the second half of the year, with potential for guidance revision mid-year.

• Management expects favorable conditions for low-income housing to persist, supported by public policies and MCMV program updates.