Metrovacesa (MVC) Q4 2024 earnings summary

Executive summary

• Delivered nearly 2,000 residential units in 2024, surpassing targets and prior year levels, with record revenues between €653.8 million and €660 million, and a net profit of €15.9 million, reversing the previous year's loss.

• Gross operating cash flow reached €146.5 million, exceeding guidance, and pre-sales grew 12% year-over-year, with a backlog of €1.2 billion.

• Gross development margin was 22.1%, and recurring pre-tax profit improved to €48.8 million.

• Two dividend distributions totaling €0.69 per share were made in 2024, and a new long-term incentive plan was approved.

• Refinancing of a €276 million syndicated loan extended maturity to 2029 and aligned with sustainability-linked KPIs.

Financial highlights

• Revenue increased 12% year-over-year, driven by strong residential development activity, with total revenues between €653.8 million and €660 million.

• EBITDA was €73.4 million, with an EBITDA margin of 11.2%, and recurring pre-tax profit rose to €48.8 million.

• Net profit for the year was €15.9 million, compared to a loss in the previous year.

• Net asset value per share increased to €13.25 after distributing €0.69–0.70 per share in dividends.

• Net financial debt decreased to €313.8 million, with a leverage ratio of 13.1–13.53%.

Outlook and guidance

• Guidance for 2025 targets gross operating cash flow above €150 million, with annual sales expected between €700–1,000 million and 1,700–2,300 home deliveries per year.

• Gross margin is expected to move closer to the mid-20s percent, and higher land sales are anticipated.

• Focus remains on residential development and continued land management to bring over 6,000 units to market.

• The company expects to maintain a conservative leverage profile and continue dividend distributions.

• Dividend decision for 2025 to be made at the AGM.