Corpovael (CADUA) Q2 2025 earnings summary

Executive summary

• Net income surged 88.4% year-over-year to MXN 115 million in 2Q25, with net margin doubling to 11.0% due to lower financial expenses and a joint venture gain.

• Revenue declined 10.7% year-over-year to MXN 1,047 million, mainly from a 71.5% drop in land plot sales, partially offset by stable home sold revenue.

• Homes sold fell 28.2% year-over-year, but average sale price rose 39.5% to MXN 1.3 million, reflecting a shift to higher-value segments.

• Free cash flow improved to MXN 169 million from -MXN 48 million in 2Q24, supporting a stronger financial position.

• Focus on middle-income and residential segments, with new projects in Cancun and Guadalajara, and continued ESG initiatives.

Financial highlights

• EBITDA decreased 3.6% year-over-year to MXN 201 million, but margin improved to 19.2% (+1.4 pp).

• Operating income dropped 11.9% to MXN 114 million, with operating margin at 10.9%.

• Gross profit was MXN 282 million, down 11.3% year-over-year, with gross margin stable at 27.0%.

• Cash and cash equivalents at quarter-end were MXN 461 million, down 6.0% year-over-year.

• Total debt increased 5.8% year-over-year to MXN 2,325 million, but decreased 4.2% sequentially.

Outlook and guidance

• Management expects continued progress on guidance targets, leveraging new project launches and large land plot sales.

• Focus remains on geographic and product diversification, prudent leverage, and sustainable housing aligned with national programs.