Direcional Engenharia (DIRR3) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational results in 2025, driven by strong demand in low- and mid-income housing segments and expansion of the Minha Casa, Minha Vida program.

• Launched BRL 6.9 billion in PSV, with net sales of BRL 6.2 billion and significant growth in the Riva mid-income subsidiary.

• Net revenue grew 30% year-over-year to BRL 4.3 billion, with total net revenue (including non-consolidated SPVs) reaching BRL 5.5 billion, up 24%.

• Adjusted gross margin rose to 42.1% (+370 bps), and adjusted EBITDA hit a record BRL 1.2 billion with a margin of 26.6%.

• Net income attributable to shareholders was BRL 789 million (+24% YoY), with adjusted ROE reaching 44%.

Financial highlights

• Net revenue for 2025 was BRL 4.3 billion (+30% YoY); total net revenue (including SPVs) was BRL 5.5 billion (+24% YoY).

• Adjusted gross margin reached 42.8% in 4Q25 and 42.1% for the year; adjusted gross profit was BRL 1.8 billion (+42% YoY).

• Net income for 2025 was BRL 789 million (+24% YoY), with a net margin of 18.2%.

• Adjusted EBITDA for 2025 was BRL 1.2 billion (+37% YoY), with a margin of 26.6%.

• Cash and equivalents totaled BRL 2.2 billion (+35% YoY); net debt at year-end was BRL 533 million, with a net debt/equity ratio of 23%.

Outlook and guidance

• Management expects continued strong demand in core segments, supported by government housing programs and operational efficiency.

• Focus remains on maintaining robust cash position, conservative leverage, and capturing scale gains.

• Deferred revenue from real estate sales increased 42% year-over-year, supporting future revenue recognition.

• Recent CRI issuance of BRL 437.5 million post-year-end further strengthens liquidity and extends debt maturity profile.

• Cash generation is expected to converge toward net income levels as growth stabilizes.