Archicom (ARH) Q2 2025 earnings summary

Executive summary

• Achieved 1,162 units sold in H1 2025, a 32% year-over-year increase, leading the market in sales growth dynamics.

• Revenue for H1 2025 reached PLN 324.9 million, nearly flat year-over-year, with a net loss of PLN 1.1 million, compared to a net profit of PLN 40.7 million in H1 2024.

• Strategic focus shifted entirely to residential by selling City2 office building for €31 million, marking exit from commercial real estate.

• Added 1,938 units to the offer and over 1,980 units to the land bank, now totaling 12,599 units.

• 5,322 units were under construction and 360 units delivered; 471,800 sqm of residential space in preparation.

Financial highlights

• H1 2025 revenue: PLN 324.9 million, nearly flat year-over-year.

• Gross profit: PLN 116.3 million, gross margin at 35.8% (down from 39.4% in H1 2024).

• Net profit from continuing operations: PLN 19.4 million, total net result: PLN -1.1 million (impacted by discontinued operations).

• Operating profit fell to PLN 28.4 million from PLN 60.3 million year-over-year.

• Net cash from operating activities was PLN 22.6 million, a significant improvement from an outflow of PLN 293.4 million in H1 2024.

Outlook and guidance

• Targeting 3,000 units sold in 2025 and 4,000 units annually from 2026.

• Expecting 2,400 handovers in 2025, with a concentration in Q3 and Q4.

• Focus on first-time buyers, projected to exceed 50% of sales from 2025.

• Anticipates increased demand in H2 2025 due to lower interest rates.

• No financial forecasts for 2025 were published.