MRV Engenharia e Participações (MRVE3) Q2 2026 earnings summary

Executive summary

• Achieved record gross margin of 31.2% in real estate development, the highest in seven years, with new sales margins approaching 35%.

• Strong cash generation reached R$470 million in 1H26, driven by asset sales and improved operational results in Brazil.

• Net pre-sales in real estate development hit an all-time record of R$10.3 billion LTM.

• Major asset sales and deleveraging initiatives were executed, including US$401 million in Resia asset sales and a memorandum to sell Luggo assets for R$166 million.

• Continued focus on simplification, deleveraging, and capital structure strengthening through asset recycling and exit from US operations.

Financial highlights

• Net operating revenue for H1 2026 reached R$5.78 billion, up 15.7% year-over-year; LTM net revenue for real estate development was R$10.8 billion.

• Adjusted net income for H1 2026 was R$288 million, up 107.4% year-over-year; Q2 2026 adjusted net income was R$155 million, up 28.2% year-over-year.

• Gross margin in real estate development was 31.2% in Q2 2026, with gross profit for H1 2026 at R$1.72 billion.

• Net loss for H1 2026 was R$722 million, improved from a R$1.2 billion loss in H1 2025.

• EBITDA LTM for real estate development reached R$2.1 billion, up 50.6% year-over-year.

Outlook and guidance

• Management expects further gross margin expansion as higher-margin new sales flow through.

• Cash generation and profitability are projected to accelerate, with further deleveraging anticipated from ongoing asset sales and transfers.

• Continued discipline in land acquisition and capital allocation to sustain profitability.

• Positive outlook for sales in H2 2026 and 2027, with no anticipated negative impact from elections.