Lavvi Empreendimentos Imobiliários (LAVV3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$ 335 million in 1Q25, up 17% year-over-year, with net income of R$ 87 million and a net margin of 26.0%.

• Interim dividends of R$ 20.6 million (~R$ 0.11/share) were approved for payment in May 2025.

• Inventory sales remained robust despite fewer launches and a seasonally slower quarter.

• Backlog revenue rose to R$ 2.4 billion, up 55% from 1Q24, with a gross margin of 36.0%.

• Landbank totaled R$ 8.4 billion, supporting future launches.

Financial highlights

• Adjusted gross margin improved to 39.3%, up over 2 percentage points year-over-year.

• Net income for the quarter was R$ 87 million, with a record R$ 359 million in the last 12 months.

• Annualized ROE reached 26% at the end of 1Q25.

• Net cash position was R$ 2.5 million as of March 31, 2025.

• Cash generation ex-land was R$ 135 million; adjusted cash burn was R$ 47 million in the quarter.

Outlook and guidance

• Management expects slower sales speed in 2025 due to higher unit prices and rising interest rates.

• Landbank remains robust, with ongoing negotiations for new land plots in both medium-high and economic segments.

• Liquidity prioritized in a high-interest rate environment; launches and sales performance closely monitored.

• No significant concerns about cancellations; monitoring remains tight.

• Management confirmed business continuity and no material uncertainties regarding ongoing operations.