Atal S.A. (1AT) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a significant decline in revenue and net profit, with revenues down 65% year-over-year and net profit down 82%, mainly due to a planned drop in handovers and project timing.

• 53 projects in progress at the end of Q1 2025, totaling 10,888 flats and 627,000 sq m saleable area, with a high number of planned investments for future growth.

• Handovers in Q1 2025 were low by design, with only 163–218 flats handed over, a 67% drop year-over-year, impacting income.

• Inventory of flats offered increased to a record 8,094, reflecting preparation for anticipated higher demand as mortgage interest rates decline.

• Land purchases in Q1 2025 totaled PLN 81 million, supporting future projects for 48,000 sq m; total land bank enables 577,000 sq m of development.

Financial highlights

• Revenue for Q1 2025 was PLN 136.7 million, down from PLN 390.3 million in Q1 2024.

• Net profit for Q1 2025 was PLN 17.1 million, with a net margin of 12.5%, down from previous periods due to low handovers.

• Gross margin for Q1 2025 was at a record 31.7%, up from 31.2% in Q1 2024.

• Operating profit was PLN 31 million, with profitability on key projects at 31.7%.

• Profit per share was 0.39 PLN in Q1 2025, down from 2.23 PLN in Q1 2024.

Outlook and guidance

• Sales in April and May 2025 improved over Q1, with further improvement expected in June and a significant increase anticipated in Q3–Q4.

• Full-year sales are expected to reach PLN 2.2–2.5 billion, with a focus on higher sales in 2026–2027.

• Handover levels in 2025 are expected to be similar to 2024, with a major increase in handovers and revenue in 2026.

• Projects under construction as of March 31, 2025, have a potential handover of 3,193 flats in 2025 (48% contracted) and 6,323 flats in 2026 (16% contracted).

• The company is prepared to introduce 4,300 flats in 2025, with 60–70% likely to be launched depending on market conditions.