MRV Engenharia e Participações (MRVE3) Q1 2026 earnings summary

Executive summary

• Maintained a differentiated market position with high-quality land bank and inventory, supporting profitability and competitiveness.

• Net operating revenue grew 18% year-over-year in 1Q26, with gross margin up 1.4 p.p. and net profit reaching R$133 million compared to 1Q25.

• Focused on increasing sales volumes and unit transfers to drive net revenue growth quarter-on-quarter, with operational improvements and a strong backlog of units to be transferred into 2Q26.

• Strategic asset sales and operational simplification are advancing, generating significant cash and reducing leverage, supported by asset sales in the US and strong performance in Brazilian real estate development.

• The Minha Casa Minha Vida program's enhancements expanded purchasing power, supporting a favorable market outlook.

Financial highlights

• Net revenue rose to R$2,562 million, up 17.6% year-over-year, with net sales at BRL 2.5 billion, up 14% year-over-year but down 10.5% sequentially.

• Gross margin improved to 31.0%, up 1.4 p.p. from 1Q25 and stable sequentially.

• EBITDA reached R$476 million, up 38.5% from 1Q25.

• Adjusted net profit surged to R$133 million, a 640.4% increase year-over-year, with adjusted cash generation of BRL 117 million, reversing prior year cash burn.

• Cash generation in real estate development was R$117 million, with consolidated cash and equivalents at R$450 million.

Outlook and guidance

• Expectation for continued growth in gross margin and net profit each quarter as new vintages contribute more to earnings, with gross margin expected to resume quarter-over-quarter expansion from 2Q26.

• Cash generation projected to strengthen further with higher sales and transfers.

• Inventory built at lower costs will serve as an inflation hedge, with price increases planned above inflation.

• Conservative approach to inflation, with provisions increased by 2 p.p. and stress tests performed.

• SG&A expenses expected to decrease as a percentage of net revenue, supporting profitability.