Metrovacesa (MVC) Q1 2025 earnings summary

Executive summary

• Revenues reached €77.6m in Q1 2025, with 246 homes delivered and a gross margin of 22.5%, surpassing 2024 levels.

• Pre-sales grew 2% YoY to €170m, with a 14% increase in average selling price per unit and 452 homes sold.

• The sales backlog increased 8% since December 2024, totaling 3,471 units and €1.3bn in future revenues.

• Households remain solvent, supported by maximum employment rates and low leverage.

• 89% of 2025 and 73% of 2026 planned deliveries are already committed.

Financial highlights

• Gross development margin improved to 22.5% in Q1 2025, slightly above FY24 average.

• Net debt at €360m and LTV ratio at 15.1% as of March 31, 2025.

• Cash position of €169m.

• Land sales contracts worth €92.7m will be recognized in 2025 and 2026.

• Absorption rate at 2.6% in Q1 2025, consistent with historical averages.

Outlook and guidance

• Guidance for 2025 confirmed, with expectations of >500 deliveries at Isla Natura - Palmas Altas.

• FY25 deliveries' ASP expected to be higher due to product mix.

• Gross margin guidance in the mid-low 20% range for FY25.

• Full-year 2024 forecasts confirmed, expecting to exceed €150m in operating cash flow.

• Growth anticipated in both development activity and land sales.