PDG Realty SA Empreendimentos e Participações (PDGR3) Q4 2025 earnings summary

Executive summary

• Construction progress accelerated on key projects, including ix.Santana and ix.Tatuapé, with ix.Tatuapé delivered as the first post-judicial reorganization project, over 90% sold and 40% of units handed over by February 2026.

• Focus on deleveraging, cash generation, and operational efficiency, including capital increases for debt conversion and a reverse stock split.

• Sold a 23% stake in the DOV land plot, retaining a strategic position in future development.

• Significant reductions achieved in cancellations, selling expenses, financial losses, and net loss year-over-year.

Financial highlights

• Gross profit reached R$53.7 million in 2025, with a 43% margin, driven by reversal of provisions for cancellations.

• Net loss reduced by 24% year-over-year to R$327.5 million in 2025.

• Financial losses reduced by 37% to R$212.0 million, mainly due to fair value adjustments of debts.

• Gross sales for 12M25 were R$91.1 million, down 31% year-over-year; net sales for 12M25 were R$60.9 million, down 35%.

• Cancellations for 12M25 totaled R$30.2 million, a 21% reduction year-over-year; selling expenses decreased by 11%.

Outlook and guidance

• Ongoing focus on recovery, operational strengthening, and sustainable growth, with continued renegotiation of extraconcursal debts and amortization of concursal debts through asset payments and equity conversion.

• Mortgage transfers expected to increase in 2026 due to ix.Tatuapé deliveries.

• Continued pursuit of strategic partnerships and new land opportunities.