Melnick Desenvolvimento Imobiliário (MELK3) Q4 2025 earnings summary

Executive summary

• Net revenue reached R$1.12 billion in 2025, up 9% year-over-year, with net income of R$112.1 million and a net margin before minority interest of 13.4%.

• Launches totaled R$1.2 billion in 2025, a 7% increase, including expansion into São Paulo and strong growth in the affordable segment via Open.

• Sales reached R$927.1 million, up 11% year-over-year, with a 57% rise in inventory sales compared to 2024.

• Distributed R$265 million to shareholders in 2025, including R$115 million in dividends and a R$150 million capital reduction.

• Diversification and expansion reduced dependency on Porto Alegre, supporting future growth.

Financial highlights

• EBITDA reached R$153.7 million, with an adjusted margin of 13.8%, up from 11.1% in 2024.

• Gross margin (excluding financing) was 28.7%, a 15% increase year-over-year.

• Net income attributable to shareholders was R$112.1 million, with a margin of 13.4% before minorities.

• Cash position at year-end was R$196.5 million; net cash ex-SFH was R$34.1 million.

• Debt totaled R$604.5 million, with net debt at R$408 million, representing 38.3% of equity.

Outlook and guidance

• Expectation of continued growth in the affordable segment and further expansion in São Paulo through partnerships.

• Landbank stands at R$3.1 billion in potential PSV, with 23% already approved for development.

• Conservative approach to leverage and cash management, targeting a net debt to equity ratio within 0–35%.

• Margins expected to remain healthy, with temporary margin decrease in Q4 2025 attributed to a one-off land purchase.

• Management highlights a balanced capital structure and sufficient liquidity to support business plans.