Tecnisa (TCSA3) Q1 2025 earnings summary

Executive summary

• Adjusted cash generation was R$44.8 million, up 384% QoQ; adjusted gross profit including equity-accounted projects was R$36 million, with a 31% margin.

• Backlog gross profit totaled R$192 million, up 7% YoY; Jardim das Perdizes backlog gross margin was 45.1%.

• Consolidated revenue was R$46.9 million, down 45% YoY, while net loss narrowed to R$8.1 million from R$20.8 million.

• Consolidated operating profit before financial result and taxes was R$3.9 million, versus a R$11 million loss in Q1 2024, supported by equity-method income.

Financial highlights

• Net operating revenue was R$46.9 million, down 45% YoY and 61% QoQ; reported gross loss was R$4.5 million versus R$7.8 million in Q1 2024.

• Adjusted gross profit was R$36 million, up 104% YoY; adjusted gross margin was 31%, up 15 p.p. YoY.

• Adjusted EBITDA was R$14.5 million, with a 30.9% margin, versus R$4.3 million and 5.1% in Q1 2024; reported EBITDA was R$5.8 million versus a R$9.1 million loss.

• Net loss was R$8.1 million, compared with losses of R$20.8 million in Q1 2024 and R$53 million in Q4 2024.

• Gross sales were R$137 million; net sales attributable to the business were R$67.3 million, down 61% YoY, with R$15.9 million in attributable cancellations.

Outlook and guidance

• Jardim das Perdizes launch guidance was R$1.5 billion for 2025 and R$2.1 billion for 2026; the 2024 target was R$1.7 billion, with R$1.6 billion launched.

• Jardim das Perdizes landbank had R$4 billion potential PSV, including R$2.1 billion attributable; R$1.8 billion potential PSV was approved in projects.

• The attributable landbank totaled R$2.7 billion and was broadly unchanged QoQ.