Tecnisa (TCSA3) Q2 2023 earnings summary

Executive summary

• Q2 net income was R$4.8 million, marking a fourth consecutive profitable quarter; LTM net income reached R$26 million.

• Q2 net revenue rose 151% YoY to R$101.8 million; adjusted gross margin was 23.1%, up 7.3 p.p. YoY.

• Attributable landbank potential sales value was R$4.31 billion, supporting three upcoming launches.

Financial highlights

• Q2 net revenue was R$101.8 million versus R$40.6 million YoY; H1 net revenue was R$241.5 million versus R$88.0 million.

• Adjusted gross profit was R$23.5 million in Q2, at a 23.1% margin; H1 adjusted gross profit was R$64.9 million, at a 26.9% margin.

• Q2 adjusted EBITDA was R$20.9 million, with a 20.5% margin; H1 adjusted EBITDA was R$46.5 million versus R$15.4 million in H1 2022.

• H1 net income was R$9.5 million versus a R$16.5 million loss in H1 2022.

Outlook and guidance

• Upcoming launches include Belaterra (preliminary PSV R$204 million; 100% share), Recanto Oliveiras (R$570 million; 57.5%) and Bosque Cerejeiras (R$430 million; 57.5%).

• Landbank PSV was R$4.3 billion, including R$1.1 billion in approved projects and R$1.0 billion under approval.

• Management expected interest-rate cuts and continued launches and construction progress to support gradual margin and profitability recovery in H2.

• Água Branca CEPAC auction procedures remained ongoing; management cited launch timing as partly dependent on the auction.