EZTEC Empreendimentos e Participações S.A. (EZTC3) Q1 2025 earnings summary

Executive summary

• Achieved record R$616 million in launches in 1Q25, up 32% year-over-year, led by Agami Park Residences (R$318M, 20% sold) and SP 360° (R$298M, 52% sold), with strong sales momentum expected to continue.

• Net sales reached R$378 million, up 29.3% year-over-year, marking the second-best start to a year in company history.

• Net income reached R$94 million, up 65.9% year-over-year, with a net margin of 30.2% and improved operational efficiency.

• Management remains cautious, adjusting launch pace quarterly based on market absorption and inventory levels.

• 75% of units scheduled for 2025 delivery are already sold, supporting robust operational performance.

Financial highlights

• Net revenue for 1Q25 was R$311 million, up 30% year-over-year, despite seasonal effects.

• Gross profit reached R$123 million, up 50% year-over-year, with a gross margin of 39.6%, the highest in five years.

• Net cash generation at the holding level, with net debt at R$397.7 million, mainly from CRI issuance and new SFH debt.

• Quarterly dividend of R$0.10 per share approved, totaling R$22 million for 1Q25.

• Cash generation (burn) improved to -R$31.7 million from -R$185.4 million in 4Q24.

Outlook and guidance

• Over R$600 million in launches expected for Q2, aiming for a record first half.

• Launch volume for the second half will depend on market absorption and inventory management, with no fixed guidance.

• Focus on delivering the largest volume of units in company history and increasing launch volume to sustain profitability.

• Seven additional deliveries expected in 2025, mostly in the second half.

• Landbank at R$10.6 billion PSV, supporting future growth.