MRV Engenharia e Participações (MRVE3) Q4 2025 earnings summary

Executive summary

• Achieved significant operational and financial progress in 2025, including record gross margin, strong cash generation, and a completed turnaround in core real estate operations.

• Net operating revenue for 2025 reached R$10.1 billion, up 20% year-over-year and 40% from 2023, marking the best performance to date.

• EBITDA rose 69.8% year-over-year to R$1.9 billion, with gross margin at 31% in 4Q25, the highest in 26 quarters.

• Focused on optimizing capital allocation, efficiency, and delivering higher returns to shareholders entering 2026.

• Subsidiaries Luggo and Urba showed strong performance, with Urba's sales up 40% year-over-year and net income of R$20 million.

Financial highlights

• Q4 2025 launches totaled R$2.9 billion, up 21% sequentially; annual launches reached R$11.5 billion, up 23% year-over-year.

• Net sales for Q4 2025 were R$2.8 billion, up 18% from Q3 2025 and 6% year-over-year.

• Net operating revenue in Q4 2025 was R$2.8 billion, up 5% sequentially and 27% year-over-year; annual revenue reached R$10.1 billion, up 20% year-over-year.

• Gross margin in Q4 2025 was 31%, the highest in 26 quarters; annual gross margin was 30.4%, up 4 p.p. from 2024.

• Q4 2025 EBITDA was R$602 million, up 15% sequentially and 113% year-over-year; annual EBITDA was R$1.9 billion, up 69% from 2024.

• Adjusted net income in Q4 2025 was R$268 million, up 32% sequentially and over 3x year-over-year; annual adjusted net income was R$611 million, 2.2x 2024.

Outlook and guidance

• 2026 expected to see continued margin improvement and strong cash-to-profit conversion.

• Guidance for 2025 met or exceeded for revenue and gross margin; net income reached 94% of lower limit.

• Launches and sales in early 2026 are stronger than previous year, with optimism for further growth.

• Resia's divestment plan is on track, with US$167 million in assets sold by January 2026 and a target of US$800 million through 2026.