Cyrela Brazil Realty S.A. (CYRE3) Q2 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2026, with disciplined capital allocation amid a challenging macroeconomic environment and external uncertainties, including geopolitical tensions and domestic market volatility.

• Launches reached R$3.84 billion in Q2 2026, up 120% quarter-on-quarter and 34% year-over-year, with 20 projects launched in the quarter.

• Pre-sales totaled R$2.561 billion in Q2 2026, up 18% sequentially and 14% year-over-year.

• Net revenue was R$2.481 billion in Q2 2026, up 23% quarter-on-quarter and 18% year-over-year, with a gross margin of 34.4%.

• Net income reached R$452 million in Q2 2026, up 16% year-over-year and 52% sequentially, with adjusted ROE for the last 12 months at 20.9%.

Financial highlights

• Year-to-date launches totaled R$5.587 billion, with pre-sales at R$4.726 billion and net revenue at R$4.506 billion.

• Gross margin was 34.4% in Q2 2026 and 33.7% year-to-date.

• Net income for H1 2026 was R$748 million, up from R$715 million year-on-year.

• Cash generation was R$272 million in Q2 2026 and R$406 million in H1 2026.

• Inventory at market value was R$12.813 billion at Q2 2026, up 13% quarter-on-quarter and 28% year-over-year.

Outlook and guidance

• Management expects gross margin to remain close to current levels, acknowledging volatility due to launches, inflation, and sales mix.

• Focus remains on disciplined project selection, capital allocation, and sustainable long-term results, with no formal guidance provided.

• Cash generation for the next quarter is expected to be neutral or slightly positive, depending on landbank expenditures and finished unit sales.

• Management highlights exposure to changes in market conditions, regulations, and economic factors.