Lavvi Empreendimentos Imobiliários (LAVV3) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of R$1.8 billion in 2025, up 14% year-over-year, and net income of R$414 million, a 21% increase, despite high interest rates and labor shortages.

• Major launches in Q4 2025 included Casa Cerâmica (R$782 million, nearly 100% sold in one week), Novvo Anália Franco, Zen Cyrela & Yoo, and Novvo Vila Prudente.

• Paid over R$400 million in dividends in 2025, with an additional R$200 million announced for 2026; nearly R$1.06 billion returned to shareholders since 2021.

• Strong operational performance with R$3.7 billion in launches and R$3.1 billion in sales (100% view), though both declined from 2024's record base.

• Preparing for the largest launch in company history (Hípica, R$2.5 billion VGV, 1,060 units) in early 2026.

Financial highlights

• Q4 2025 net revenue: R$530 million (-8% year-over-year), but up 28% sequentially; full-year revenue: R$1.8 billion (+14% year-over-year, record level).

• Adjusted gross margin: 35.5% in Q4 2025 (-2.1 p.p. year-over-year), 37.0% for the year (+1.5 p.p. year-over-year).

• Net income: R$105 million in Q4 2025 (net margin 19.7%), R$414 million for the year (net margin 23.5%).

• Adjusted EBITDA: R$139 million in Q4 2025 (-21% year-over-year), R$509 million for the year (+20% year-over-year).

• ROE annualized at 28% at year-end; backlog revenue: R$2.8 billion (+19% year-over-year), gross margin 37.5%.

Outlook and guidance

• Preparing for the major Hípica project launch in São Paulo (R$2.5 billion VGV, 1,060 units) in early 2026.

• Landbank of R$8.8 billion (100% view) supports launches through 2026 and 2027.

• Management remains cautious due to high interest rates, elections, and global uncertainties, focusing on agile launch strategies and market monitoring.

• Margin is expected to improve as older, lower-margin inventory is replaced by new, higher-margin projects.

• Focus on selling inventory, especially Villa Versace, with willingness to adjust prices for liquidity.