Consorcio Ara SAB de CV (ARA) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenues reached MXN 2.07 billion, the highest since Q4 2019, with strong free cash flow and net income of MXN 172.0 million.

• Housing revenues grew 10.6% year-over-year, driven by affordable entry-level and middle-income segments, with 1,163 titled homes and a 3.3% increase in average price.

• Shopping mall division revenues rose 11.1% year-over-year, with a 94.3% occupancy rate as of June 30, 2025.

• Dividend of MXN 200 million paid in July 2025, representing 29.1% of 2024 net earnings and a 5.13% yield.

• S&P reaffirmed the company’s "mxAA-" credit rating with a stable outlook, the highest among Mexican housing firms.

Financial highlights

• Q2 2025 operating income: MXN 197.2 million (9.5% margin); net income: MXN 172.0 million (8.3% margin); EBITDA: MXN 288.2 million (13.9% margin).

• H1 2025 revenues totaled MXN 3.92 billion, up 12.7% year-over-year; net income: MXN 351.5 million (9% margin); EBITDA: MXN 542.1 million (13.8% margin).

• Free cash flow in Q2 2025: MXN 218.1 million; H1 2025: MXN 159.0 million.

• Gross margin in Q2 2025 was 26.2%, down 40bp; operating margin 9.5%, down 160bp; net margin 8.3%, down 160bp.

• Cash and equivalents as of June 30, 2025: MXN 2.19 billion, down 6.3% from year-end 2024 due to debt payments.

Outlook and guidance

• Management maintains its target for growth in 2025 similar to the previous year, despite market volatility and macroeconomic uncertainties.

• Average home price for H2 2025 expected to increase 2–3% year-over-year, reaching MXN 1.2–1.3 million.

• Modest positive free cash flow expected in H2 2025 as new projects are launched.