Direcional Engenharia (DIRR3) Q3 2025 earnings summary

Executive summary

• Achieved record-high adjusted gross margin of 42.1% in 3Q25, up 40 bps from 2Q25 and 350 bps from 3Q24, with net revenue reaching BRL 1.2 billion, a 27% year-over-year increase.

• Net income totaled BRL 230 million, up 25% sequentially and 43% year-over-year, with annualized ROE at a record 35%.

• Riva segment contributed significantly, with record launches and sales, high margins, and a partial sale of Riva shares completed.

• Robust cash generation of BRL 493 million in 9M25, with cash and equivalents totaling BRL 2.4 billion and low leverage.

• Launched BRL 2.2 billion in PSV in 3Q25, the highest quarterly volume ever.

Financial highlights

• Adjusted EBITDA reached BRL 302 million in 3Q25, up 10% sequentially and 36% year-over-year, with a margin of 26.1%.

• Adjusted net profit for 3Q25 was BRL 205 million, excluding BRL 25 million in non-recurring items.

• Net margin reached 19.8% in 3Q25, up 2.2 p.p. year-over-year.

• Backlog margin improved to 45.2% in 3Q25.

• Deferred revenue from real estate sales increased 41% year-over-year to BRL 3.7 billion.

Outlook and guidance

• Management expects continued strong demand in affordable and mid-income housing, supported by government programs and increased purchasing power.

• Growth is expected to remain healthy and sustainable, with flexibility to adjust launches by region and segment.

• Forward-looking statements are subject to market, political, and regulatory risks.