Melnick Desenvolvimento Imobiliário (MELK3) Q1 2025 earnings summary

Executive summary

• Achieved R$130 million in sales in 1Q25, a 55% increase over 4Q24, all from inventory sales, with no new project launches.

• Delivered 4 projects totaling R$396.3 million in PSV, with 95% of units sold.

• Operating cash generation was R$48 million, ending with a cash position of R$352.2 million and net cash of R$2.5 million.

• Paid R$150 million as capital reduction to shareholders, representing a 22.5% yield.

• Net income attributable to shareholders was R$13.4 million, with a net margin of 9.4%.

Financial highlights

• Net revenue for 1Q25 was R$225.2 million, down 8% year-over-year.

• Gross profit reached R$50.9 million, with an adjusted gross margin of 27.2%.

• Adjusted EBITDA was R$19.0 million, margin 8.4%.

• Net income was R$13.2–13.4 million, net margin before minorities at 9.4%.

• Financial result was a positive R$28.9 million.

Outlook and guidance

• No new launches in 1Q25; focus remains on inventory sales, operational efficiency, and financial solidity.

• Landbank stands at R$3.3–4.8 billion in PSV, with R$341 million in new land acquired.

• Long-term goal is to maximize return on invested capital and maintain strong cash generation for dividends.