MRV Engenharia e Participações (MRVE3) Q1 2026 earnings summary

Executive summary

• High-quality land bank and inventory supported profitability and competitiveness; Minha Casa Minha Vida enhancements expanded purchasing power and supported demand.

• Higher production and transfers, plus March-concentrated pre-sales, created a backlog expected to support 2Q26 transfers.

• Asset sales and Brazilian development operations supported R$387m in total cash generation and progress on deleveraging.

Financial highlights

• Net operating revenue was R$2.78bn, up from R$2.28bn year-over-year; MRV Real Estate Development net revenue was R$2.562bn, up 17.6%.

• Gross margin reached 31.0%, up 1.4 p.p. year-over-year; reported gross profit was R$816.5m, versus R$654.1m.

• Adjusted net profit was R$133m, up 640.4% year-over-year; reported net loss narrowed to R$76.3m from R$362.7m.

• EBITDA reached R$476m, up 38.5% year-over-year; cash and cash equivalents were R$450.3m at quarter-end.

• MRV Real Estate Development adjusted cash generation was R$128m; excluding portfolio sales, it was R$22.4m.

Outlook and guidance

• Gross margin and net profit are expected to improve quarter-on-quarter as new vintages contribute more; margin expansion is expected to resume from 2Q26.

• Higher sales and transfers are expected to strengthen cash generation; March pre-sales are expected to support higher 2Q26 transfers.

• SG&A expenses are expected to decline as a percentage of net revenue; marketing expenses are expected to ease in subsequent quarters.

• Urba expects further improvement in operational and financial indicators in 2026.

• The US$6.7m Resia property-tax payment was an annual charge and is not expected to burden results in coming quarters.