Melnick Desenvolvimento Imobiliário (MELK3) Q3 2025 earnings summary

Executive summary

• Net launches reached BRL 119 million in Q3 and BRL 475 million YTD, with Melnick Partners contributing BRL 71 million in Q3 and BRL 243 million YTD through partnerships; Quaddra Lorena project in São Paulo launched with a PSV of R$674 million.

• Net sales totaled BRL 148 million in Q3 and BRL 602 million YTD, with a 66% year-over-year increase in inventory sales for the first nine months.

• Gross margin ex-financing rose to 30.6% in Q3, marking the fourth consecutive quarter of growth; net margin was 14.7%.

• Dividend payout of BRL 50 million in the quarter, maintaining a strong track record of returns to shareholders.

• Ended Q3 2025 with R$1.3 billion in inventory (Melnick share), 23% of completed inventory leased, and a landbank of R$2.9 billion in potential VGV.

Financial highlights

• Q3 net revenue was BRL 244 million, gross profit BRL 61 million, and net income BRL 25 million; 9M25 net revenue was R$806.7 million, up 28% year-over-year, with net income of R$77.7 million.

• Gross margin ex-financing for production reached 30.6%, and net margin before minority interest was 14.7%.

• Gross profit for 9M25 was R$201.7 million, up 59% year-over-year.

• EBITDA was R$33.9 million in Q3 (margin 14%) and R$99.5 million in 9M25 (margin 12%).

• Cash and equivalents plus securities totaled R$365.9 million at quarter-end, up 4% from Q1 2025.

Outlook and guidance

• Gross margin expected to remain stable, with minor fluctuations; construction costs are under control.

• Anticipates significant launches in Q4, especially in the Open Minha Casa, Minha Vida segment and through partnerships.

• Open division (lower income) is set for growth, with more launches and increased share among business units next year.

• Landbank totals R$4.4 billion in gross PSV, with R$2.9 billion in potential PSV; 32% already approved for development.

• Management highlights a conservative capital structure and robust liquidity, with net debt at R$149.4 million (13.6% of equity) and adjusted net cash of R$263.6 million (24% of equity).