Metrovacesa (MVC) Q2 2024 earnings summary

Executive summary

• Revenues rose 42% year-over-year to €235 million in H1 2024, with EBITDA up 223% to €31.3 million and net profit at €3.8 million, reversing a loss from H1 2023.

• Delivered 675 homes (+18% YoY) at an average price of €335,000, with gross margin at 24.2% and record pre-sales of 1,046 units (+15% YoY).

• Sales backlog reached €1.2 billion, with 3,703 units and high contract formalization rates, providing strong visibility for future cash flows.

• ESG initiatives advanced, with all launches achieving AA energy efficiency and comprehensive life cycle carbon analysis underway.

• Land sales pipeline grew to €58 million in binding contracts, and land purchases reached €23.4 million in H1 2024.

Financial highlights

• H1 2024 revenues of €235 million (+42% YoY), with residential contributing €226.7 million and land sales €8.3 million.

• EBITDA reached €31.3 million (+223% YoY); recurring pre-tax profit at €22.4 million; net profit was €3.8 million, up from a loss in H1 2023.

• Gross margin improved to 24.2%, the highest since 2018; net margin at 19.4%.

• Free cash flow of €66.2 million (+150% YoY); net debt at €343.4 million with a 13.8% loan-to-value ratio.

• Average selling price rose to €335,000 per unit, up 17% year-over-year.

Outlook and guidance

• On track to deliver more units in 2024 than in 2023, with a higher concentration of deliveries in H2.

• Sales coverage for 2025 at 73% and for 2026 at 50%, supporting strong visibility.

• Cash flow generation guidance reiterated at €100–125 million for the year.

• Gross margin guidance raised to 22–23% for the coming years.

• Positive market prospects expected to continue, with further support from potential ECB rate cuts.