Melnick Desenvolvimento Imobiliário (MELK3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$320.5 million in 1Q26, up 42% year-over-year, with net sales of R$300 million and net income rising 86% to R$25 million, supported by strong launches and high absorption rates in Porto Alegre.

• Finished inventory was reduced by 14% compared to the previous quarter, reflecting improved inventory management.

• Two major launches in Porto Alegre contributed to robust sales, with high absorption in both upper-middle-income and Minha Casa, Minha Vida segments.

• 86% of units in projects to be delivered this year are already sold, supporting a positive outlook.

• Shareholders approved R$20.3 million in dividends to be paid by year-end 2026.

Financial highlights

• Net revenue for the quarter was R$320.5 million, gross profit R$77.8 million, and adjusted gross margin 28.5%.

• Net income reached R$25 million, up 86% year-over-year, with a net margin before minority interest of 11.2%.

• EBITDA was R$45.9 million (margin 14.3%).

• Cash position at quarter-end was R$250 million; net debt was R$452.3 million (36.6% of equity).

• Cash burn for the quarter was R$33.8 million.

Outlook and guidance

• Management expects a positive year with continued strong sales and deliveries, supported by a robust land bank and favorable market absorption in Porto Alegre.

• Landbank totals R$3.2 billion to R$4.4 billion in potential sales value, with 20% of projects already approved.

• Upcoming deliveries estimated at R$1.18 billion through 2029.

• The new Porto Alegre master plan is expected to increase land value and project potential in the mid- to long-term.

• Conservative approach to dividend payout in 2026 due to macroeconomic uncertainties; policy will be reassessed as the year progresses.