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

Executive summary

• Achieved record launches of R$616 million in Q1 2025, the highest first-quarter PSV in company history, led by Agami Park Residences and SP 360°, both 100% owned and with strong sales performance.

• Net sales reached R$378 million, up 29.3% year-over-year, marking the second-best start to a year, with 12-month net sales totaling R$1.8 billion.

• Net income rose 65.9% year-over-year to R$94.1 million, with a net margin of 30.2% and EPS of R$0.43.

• Deliveries reached R$2.6 billion year-to-date, with 75% of 2025 scheduled deliveries already sold, marking the highest delivery level in company history.

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

Financial highlights

• Net revenue for Q1 2025 was R$311.2 million, up 30.1% year-over-year, the highest for a Q1 without one-off effects.

• Gross profit reached R$123.3 million, up 50.9% year-over-year, with a gross margin of 39.6%, the highest in five years.

• Net income reached R$94.1 million, with net margin at 30.2% and annualized ROE/ROAE at 9.2%-11.4%.

• Financial results grew to R$44 million, with receivables portfolio duration at 70 months and average yield of 10%.

• Operating cash flow was negative at R$2.5 million, with net cash generation at the holding level and cash burn at the operational level.

Outlook and guidance

• Q2 2025 expected to match Q1 in launch volume, targeting over R$600 million, with seven additional project deliveries scheduled for the remainder of the year.

• Plans to deliver the largest volume of units in company history in 2025, with most deliveries in the second half.

• Landbank at R$10.6 billion PSV supports future growth.

• Management remains conservative, prioritizing inventory control and sales over aggressive expansion.

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