Atal S.A. (1AT) Q4 2024 earnings summary

Executive summary

• Operations expanded to eight locations in Poland, with Szczecin added in 2024 and 51 ongoing investments at year-end.

• 2,460 flats were handed over in 2024, a 12% decrease year-over-year, with most investments completed on schedule.

• Flats sold in 2024 totaled 2,833, with a 27% decrease year-over-year, influenced by government subsidy programs and market anticipation.

• The company started construction on 27 projects (5,141 flats) and launched sales for 24 investments (4,739 flats) in 2024.

• Land purchases in 2024 totaled PLN 373 million, supporting future development.

Financial highlights

• Consolidated revenues reached PLN 1,486.9 million in 2024, down 1% year-over-year.

• Net profit was PLN 295.6 million, with a net margin of 19.9%, among the highest in the market.

• Gross margin on sales decreased to 23.7% from 27.6% in 2023.

• Net debt ratio increased to 0.16 at year-end, with liabilities up 12% and current assets up 8% due to increased inventory.

• Operating income fell 18% to PLN 331.1 million; EPS was PLN 6.84, down from PLN 8.42.

Outlook and guidance

• Targeting sales of at least 2,500 flats in 2025, with expectations of stronger sales in the second half if interest rates drop.

• Net margin for 2025 estimated at 21%, gross margin at 27%.

• Over 5,700 flats being prepared for construction in 2025, with flexibility based on administrative decisions and demand.

• Planned projects for 2026 and beyond indicate a pipeline of over 6,000 flats and 687,670 m² of usable area.

• Planning to build and hand over more than 6,000 flats in 2026, with 13% already sold.