Gafisa (GFSA3) Q1 2025 earnings summary

Executive summary

• Achieved a 15% increase in gross sales compared to 1T24, marking the highest VSO in the last four years.

• Net income reached R$21 million in 1Q25, up 1113% year-over-year, with net operating revenue of R$227 million.

• Delivered the Ibirapuera Park project (PSV R$225 million) and launched exclusive suites at Allard Oscar Freire, reinforcing a focus on the luxury segment.

• 93% of gross sales in the quarter were from high-end products, reflecting a strategic shift to the luxury market.

• Included in B3's ISE and CDP Climate ranking, highlighting ESG commitment.

Financial highlights

• Net operating revenue reached R$227 million in 1T25, down 10.6% year-over-year and 36.9% sequentially from 4Q24.

• Net income totaled R$21 million, up 6.6% year-over-year and 1122.9% sequentially.

• Adjusted EBITDA was R$24.2 million, with a margin of 10.6%, down from 38% in 1Q24.

• Fixed costs fell 34% year-over-year to R$10 million, and selling expenses dropped 11% sequentially.

• Cash consumption reduced by 31% sequentially to R$51 million.

Outlook and guidance

• Positive outlook for 2025, with preparations underway for new launches in Rio de Janeiro.

• Continued focus on high-end and luxury real estate, aiming for sustainable growth and value generation.

• Management notes that forward-looking statements are subject to risks and uncertainties, and actual results may differ from projections.