Echo Investment (ECH) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 performance with 13% year-on-year growth in residential sales, 602 apartments sold, and 730 handovers, reversing a prior loss to a net profit of PLN 10.3 million.

• Closed a landmark sale of approximately 5,300 Resi4Rent apartments for PLN 2.4 billion, unlocking over PLN 300 million in net free cash flow.

• Major asset sales included Brain Park A and B office buildings for a combined EUR 74.3 million, supporting capital recycling and liquidity.

• Continued focus on Warsaw CBD for new commercial projects, expansion in the popular residential segment, and asset-light strategy.

• Maintained strategy of capital recycling: proceeds from disposals allocated to debt reduction, dividends, and new investments.

Financial highlights

• Q1 2026 revenue reached PLN 469 million, up from PLN 94.6 million in Q1 2025.

• Net profit attributable to shareholders was PLN 10.3 million, reversing a loss of PLN 85.4 million year-over-year.

• EBIT improved to PLN 77.3 million from a loss of PLN 65.6 million year-over-year.

• Gross margin on residential sales remained strong at 30–40%, with higher margins in the premium segment.

• Net financial costs decreased by PLN 10 million due to lower interest expenses.

Outlook and guidance

• Targets maintained for 2026: 3,200–3,500 apartments sold and about 3,000 handed over, with a long-term goal of 4,000 annual sales and a land bank of 14,000–15,000 units.

• Net debt ratio targeted to decrease to 20–30% in 2026–2027.

• Continued growth expected in the popular residential segment, Resi4Rent, and student housing platforms.

• Positive outlook for both office and living markets, with further improvement expected in upcoming quarters.