MRV Engenharia e Participações (MRVE3) Q2 2025 earnings summary

Executive summary

• Affordable housing demand and government support remained strong, while launches, pre-sales, production and operating KPIs improved.

• 2Q25 net revenue reached R$2.53 billion, gross margin was 30.2% and adjusted net profit was R$125 million; consolidated results included a large Resia impairment.

• Delayed housing-program transfers and CEF rule changes pressured cash generation; Resia divestments and deleveraging remained underway.

Financial highlights

• Launches reached R$3.5 billion, up 19% QoQ; net sales were R$2.7 billion, up 24% QoQ and 6% YoY.

• Net operating revenue was R$2.71 billion in 2Q25, up from R$2.29 billion in 2Q24; 1H25 revenue reached R$4.99 billion.

• Gross profit rose 40% YoY to R$762 million; gross margin reached 30.2%, up 4.1 p.p. YoY.

• EBITDA was R$467 million, up 35% QoQ and 63% YoY; adjusted net income was R$125 million, up 65% YoY.

• Consolidated net loss was R$838.4 million in 2Q25 and R$1.20 billion in 1H25, including a R$1 billion Resia impairment.

Outlook and guidance

• Cash generation and net income guidance was reaffirmed; higher H2 cash generation was expected as transfers outpaced production.

• H2 launches, particularly in Q3, were expected to be strong with healthy margins; margin trend was projected to reach 35% ex-interest.

• Regional transfer restrictions were expected to ease; Rio Grande do Sul's program had been regularized and transfers resumed.

• Resia's divestment plan targets US$800 million in asset sales through 2026; Luggo was finalizing investment in three projects with R$185 million sales potential.