Y.H. Dimri Construction & Development (DIMRI) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached 466.5 million NIS, up 14% year-over-year, driven by increased land sales and ongoing residential projects.

• Net income for the quarter was 528.5 million NIS, a significant rise from 153.0 million NIS in Q1 2024, mainly due to a one-time gain from land sale in Hadera.

• Gross margin decreased to 43.6% from 50.3% year-over-year, reflecting a change in project mix and lower margins on certain sales.

• The company continues to expand its residential and investment property pipeline, with over 39,500 units in planning and execution.

• Board approved and paid dividends totaling 72 million NIS in Q1 2025.

Financial highlights

• Revenue: 466.5 million NIS (Q1 2025), up from 408.2 million NIS (Q1 2024).

• Net income: 528.5 million NIS (Q1 2025), up from 153.0 million NIS (Q1 2024).

• EBITDA: 186 million NIS (Q1 2025), compared to 169 million NIS (Q1 2024).

• Gross margin: 43.6% (Q1 2025), down from 50.3% (Q1 2024).

• Cash and equivalents: 643.5 million NIS as of March 31, 2025.

Outlook and guidance

• Management expects continued strong demand for residential and urban renewal projects, despite a general market slowdown.

• The company maintains a stable A1 credit rating with a positive outlook.

• Ongoing regulatory changes and macroeconomic uncertainty may impact sales pace and financing conditions.

• No liquidity issues are expected; significant cash reserves and undrawn credit lines are available.