Moura Dubeux Engenharia (MDNE3) Q1 2025 earnings summary

Executive summary

• Achieved record net profit of R$70.4 million in Q1 2025, up 67% year-over-year, with a net margin of 16% and ROAE of 18.7%.

• Net revenue reached R$439 million, up 42.3% year-over-year and 19.4% sequentially, driven by strong development project contributions and land commercialization fees.

• Launched 3 projects totaling R$402 million in Net PSV, with robust sales performance and healthy inventory levels.

• Ended the quarter with 56 projects in progress and a landbank of 59 plots valued at R$9.6 billion in Gross PSV.

• Maintained a cautious approach to launches and sales, focusing on execution, profitability, and low leverage, while capitalizing on high demand in key markets.

Financial highlights

• Net revenue for Q1 2025 was R$439 million, up 42.3% year-over-year and 19.4% sequentially.

• Net profit for Q1 2025 was R$70.4 million, with a net margin of 16%.

• Gross profit was R$148.4 million, gross margin 33.8%; adjusted gross margin reached 36%.

• Adjusted EBITDA for Q1 2025 was R$89.1 million, margin 20.3%.

• Free cash flow for the last twelve months was R$36 million (ex-dividends); net debt at R$125.6 million, net debt/equity at 7.8%.

Outlook and guidance

• Management expects to surpass 20% ROAE in 2025 and to exceed Q1 sales volume in Q2, with two major launches planned.

• Pipeline includes iconic projects in Recife (Lucena Plaza, R$485 million) and Fortaleza (Mansão Seara, R$341 million).

• Dividend payments of R$100 million are planned for 2025, with R$50 million approved for May and potential for extraordinary dividends.