Even Construtora e Incorporadora (EVEN3) Q1 2025 earnings summary

Executive summary

• Achieved comprehensive net income of R$81 million in 1Q25, up over 51% year-over-year, with ROE LTM at 12.6% and strong operating cash generation of R$166 million for the quarter.

• Net revenue for 1Q25 was R$337 million, a 25% decrease compared to 1Q24, while deliveries surged 63% to R$322 million in PSV, totaling 454 units in São Paulo.

• Strategic focus on high-end and luxury segments, with a healthy inventory and robust pipeline of launches planned for the coming quarters.

• No new project launches in 1Q25; focus remained on selling existing inventory.

• Cash generation was R$166 million, a 472% increase from 1Q24.

Financial highlights

• Gross profit for 1Q25 was R$79 million, with an adjusted gross margin of 29.4%, consistent with previous quarters.

• Net sales volume in Q1 2025 was R$246 million, with a consolidated SoS of 90%.

• Comprehensive net income included R$27 million from equity interest sales, recognized directly in equity.

• ROE LTM stood at 12.6% in 1Q25.

• Net margin before minority interest at 27.9%, up 15 p.p. year-over-year.

Outlook and guidance

• Expectation of strong cash generation in 2025, supported by a high volume of deliveries and a robust receivables portfolio.

• Launch pipeline includes Casa Madalena, São Paulo Bay, and Melo Alves, targeting high-end markets.

• Estimated deliveries for the next 12 months are approximately 1,800 units.

• Management aims to identify new real estate investment opportunities and maintain confidence in future growth.

• Cautious approach to land acquisition, leveraging cash position for opportunistic purchases while maintaining flexibility for future leverage.