Instone Real Estate Group (INS) Q2 2026 earnings summary

Executive summary

• Delivered solid H1 2026 results despite prolonged geopolitical tensions, with resilient business performance and stabilization in investor sentiment after an initial demand shock from the Middle East conflict.

• Demand is recovering after a temporary dip, with institutional sales gaining momentum and retail sales ratios returning to normalized levels.

• Adjusted revenue for H1 2026 was €184.2 million, down 20.3% year-over-year, mainly due to lower construction output and slower sales, particularly impacted by the handover of sub-projects in the "Westville" project.

• Adjusted earnings after tax dropped sharply to €1.3 million from €17.2 million in H1 2025, reflecting lower gross profit and higher financial costs.

• Cash flow from operations improved significantly to €42.7 million, supporting further growth investments.

Financial highlights

• Adjusted revenues for H1 2026 were €184.2 million, impacted by weather-related lower construction output and down 20.3% year-over-year.

• Gross margin remained strong at 27.9%, above expectations and industry benchmarks, with a full-year target of over 24%.

• Adjusted earnings after tax were €1.3 million, affected by low H1 revenues and higher net interest expenses.

• Sales volume reached €140.8 million, with private customer sales up 26% year-on-year and Q2 showing 41% growth.

• Net financial debt increased to €174.4 million, with leverage at 4.2x adjusted EBITDA.

Outlook and guidance

• 2026 guidance confirmed at the lower end: sales volume €650–750 million, adjusted revenues €550–600 million, net profit €35–40 million, and gross margin above 24%.

• Strong H2 acceleration expected, especially in institutional sales, with most deals closing in Q4.

• Guidance assumes no material deterioration in macro or geopolitical conditions.

• Minimum dividend of at least €0.43 planned for the year.

• Sales volumes are expected to recover but not reach pre-crisis levels in 2026.