Corpovael (CADUA) Q1 2025 earnings summary

Executive summary

• Total revenues reached MXN 852 million in 1Q25, down 9.5% year-over-year, with EBITDA at MXN 138 million, down 11.6%.

• Homes sold decreased 33.0% to 543 units, mainly due to lower affordable entry-level housing sales.

• Net income dropped 54.1% to MXN 31 million, with net margin at 3.6% versus 7.1% in 1Q24.

• Average sale price rose 36.4% to MXN 1.5 million, driven by a higher share of residential segment sales.

• Free cash flow was -MXN 174 million, compared to MXN 72 million in 1Q24.

Financial highlights

• Gross income was MXN 230 million, down 11.0% year-over-year; gross margin at 27.0%.

• Operating income fell 35.3% to MXN 65 million; operating margin at 7.6%.

• SG&A expenses increased 4.5% to MXN 165 million, representing 19.4% of revenue.

• Cash & cash equivalents stood at MXN 491 million, up 1.9% year-over-year.

• Total debt increased 18.4% to MXN 2,428 million, with bank debt up 27.3%.

Outlook and guidance

• Sales of entry-level housing in Cancun and Playa del Carmen began in March 2025, expected to support meeting annual targets.

• New projects in Jalisco and Quintana Roo are under development, with launches expected by year-end.

• Management remains focused on cash flow, leverage, and profitability improvements.

• Monitoring macroeconomic variables and the impact of the new Infonavit reform and US tariffs.