Lavvi Empreendimentos Imobiliários (LAVV3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$415 million in 3Q25, up 5% year-over-year, and R$1.23 billion for the first nine months, up 26% year-over-year, marking a record period.

• Net income was R$104 million in 3Q25 (up 20% YoY), with YTD net income of R$309.4 million (up 39% YoY), and a net margin of 25.1%.

• Annualized ROE stood at 29% at the end of 3Q25, reflecting strong profitability.

• Dividend payouts included R$128.8 million during the period and R$124.7 million approved post-period, totaling R$879 million distributed since 2021.

• Major capital raise and CRI/commercial paper issuances totaled R$400 million, supporting future land acquisitions and financing.

Financial highlights

• Adjusted gross margin reached 37.6% in 3Q25 and for the nine-month period, up 3.7 percentage points YoY.

• Adjusted EBITDA was R$125 million in 3Q25 (+27% YoY), with a margin of 30%; YTD adjusted EBITDA was R$370 million (+49% YoY).

• Net debt stood at R$74 million as of September 30, 2025, with a Net Debt/Shareholders' Equity ratio of 4.1%.

• Backlog revenue reached R$2.4 billion (+18% YoY), with a gross margin of 37.0%.

• Cash generation in 3Q25 was R$3.5 million; YTD, R$74 million cash burn, or R$319 million cash generation excluding land investments.

Outlook and guidance

• Focus for 2026 on high-income club condos and Minha Casa, Minha Vida projects, with a robust land bank of R$10.2 billion supporting launches for 2026 and 2027.

• Land bank replacement will prioritize swaps and selective cash purchases, maintaining liquidity and leveraging favorable debt conditions.

• Management expects to maintain strong cash generation and profitability, while monitoring the impact of IFRS 18 effective January 2027.

• Sales speed (SoS) was 17% in the quarter and 54% LTM, with sales exceeding launches.