Cyrela Brazil Realty S.A. (CYRE3) Q1 2026 earnings summary

Executive summary

• Maintained a disciplined and cautious approach amid high interest rates and geopolitical uncertainties, focusing on selective launches and capital allocation.

• Net revenue reached R$2,025 million in Q1 2026, up 4% year-over-year but down 37% quarter-on-quarter, with a gross margin of 32.9%.

• Net income was R$297 million, down 9% year-over-year and 56% quarter-on-quarter; adjusted ROE for the last 12 months was 21.2%.

• Cash generation reached R$134 million, up 88% year-over-year and reversing a cash burn in Q4 2025.

• Launches totaled R$1,747 million (ex-swaps), down 48% year-over-year and 47% quarter-on-quarter, with pre-sales at R$2,164 million, up 2% year-over-year but down 9% sequentially.

Financial highlights

• Gross margin was 32.9%, stable or slightly improved year-over-year.

• Net margin was 14.7% in Q1 2026, down from 16.8% in Q1 2025.

• EPS for the quarter was R$0.68, compared to R$0.89 in Q1 2025.

• Cash and equivalents totaled R$7,212 million at quarter-end.

• Net cash from operating activities was -R$109.6 million, an improvement year-over-year.

Outlook and guidance

• No formal guidance provided; management expects 2026 to be similar to 2025, with stable or slightly lower launches and a disciplined approach to new projects.

• Revenue could increase if current sales levels are maintained, potentially reaching high single-digit growth.

• Cash generation for the year estimated up to R$200 million.

• SG&A expected to remain around 15% of revenue, growing slightly above inflation.

• Management notes that forward-looking statements depend on market conditions, government rules, competition, and the Brazilian economy.