Metrovacesa (MVC) Q2 2024 earnings summary

Executive summary

• Revenues grew 42% year-over-year in H1 2024 to €235 million, driven by robust residential sales and improved margins.

• EBITDA rose to €31.3 million (+223% YoY), with net profit at €3.83 million, reversing a prior-year loss.

• Delivered 675 residential units (+18% YoY), with a gross margin of 24.2% and average selling price of €335,000 per unit (+17% YoY).

• Sales backlog reached €1.2 billion (3,700+ units), providing strong visibility for future cash flows.

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

Financial highlights

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

• Gross margin improved to 24.2%, the highest since 2018, and net margin rose to 19.4%.

• EBITDA margin increased to 13.3% (from 5.9% in H1 2023); net profit was €3.8 million.

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

• Dividend of €54.6 million (€0.36 per share) distributed in May 2024.

Outlook and guidance

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

• FY2024 operating cash flow guidance reiterated at €100–125 million, supported by strong sales backlog and high pre-sales coverage for 2024–2026.

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

• Market outlook remains positive, with support from ECB rate cuts and stable Euribor.