Moura Dubeux Engenharia (MDNE3) Q2 2025 earnings summary

Executive summary

• Achieved record launches of R$1.9 billion in 2Q25, up 192.4% year-over-year and 363% sequentially, with a strong focus on closed condominium and Mood projects.

• Net revenue for 2Q25 reached R$665 million, a 69.6% increase year-over-year and 51.5% sequentially, driven by robust sales and project deliveries.

• Achieved record net profit of R$120.3 million in 2Q25, up 60.6% year-over-year and 70.9% quarter-over-quarter, with net margin at 18.1%.

• Maintained a conservative capital structure with net debt at R$181.7 million (10.7% of equity) and a strict leverage ceiling of 20%.

• Strategic shift towards luxury, high-income, and mid-income segments, with Mood and Única brands targeting middle and Minha Casa, Minha Vida sectors.

Financial highlights

• Adjusted gross margin for 2Q25 was 34.4%, with gross profit at R$221.3 million (+53.8% YoY); consolidated margin YTD: 38%.

• Adjusted EBITDA for 2Q25 reached R$141 million (+47.8% YoY), with margin at 20.0%.

• Net profit for 2Q25 LTM reached R$325 million, a 62.9% increase year-over-year, with a 16.5% margin.

• ROAE reached 20.6% at the end of 2Q25, up from 14.5% in 2Q24.

• Dividend payout of R$105 million in the last 12 months, with plans for R$50 million more by year-end.

Outlook and guidance

• 2025 guidance: launches expected to surpass R$4 billion, with a new profitability floor of R$380 million.

• Launches for 3Q25 (July and August) expected to reach R$1.3 billion, with YTD launches at R$3.6 billion.

• Focus remains on disciplined growth, margin protection, cash preservation, and shareholder returns.

• Expectation of strong cash generation starting in H2 2026, with continued dividend payments.