Cyrela Brazil Realty S.A. (CYRE3) Q2 2025 earnings summary

Executive summary

• Demonstrated operational and financial resilience amid a challenging macroeconomic environment, with geopolitical tensions and the Selic rate at its highest since 2006.

• Launched 17 projects in Q2 2025, with PSV between BRL 2.9 billion and BRL 4.1 billion; H1 launches reached up to BRL 9.0 billion, up over 180% year-over-year.

• Contracted sales in Q2 ranged from BRL 2.2 billion to BRL 3.3 billion, up over 30% year-over-year; year-to-date sales reached up to BRL 6.3 billion, up 39%.

• Maintained robust sales speed, with LTM SOS at 52.3% and inventory at market value of BRL 13.4 billion.

• Net debt-to-equity ratio at 12.7%, with leverage remaining at healthy levels.

Financial highlights

• Q2 net revenue was BRL 2.1 billion, up 13% year-over-year; H1 revenue reached BRL 4.1 billion, up 18%.

• Gross margin for Q2 was 32.7%; adjusted gross margin reached 34.9%.

• Net income in Q2 ranged from BRL 388 million to BRL 715 million; H1 net income was BRL 715 million.

• Return on equity (ROE) for the last 12 months was 19.5%.

• Cash consumption in Q2 was BRL 392 million, mainly due to land lot purchases and operational activities.

Outlook and guidance

• Management remains confident in the strategy focused on premium and differentiated projects for sustainable long-term results.

• Cash consumption expected to remain high in H2 2025 due to land bank investments and operational factors; year-end cash position projected below initial expectations.

• Additional dividend payout to be considered at year-end, depending on capital structure and cash performance.

• Focus on operational efficiency, conservative financial management, and value creation for shareholders.