Consorcio Ara SAB de CV (ARA) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 revenue rose 8.1% year-over-year to MXN 2.01 billion, with net income up 15% to MXN 199.8 million and EBITDA up 9.2% to MXN 298 million.

• Housing revenues increased 4.1% to MXN 1.86 billion, driven by higher sales in middle-income and residential segments, while affordable entry-level home sales declined due to project completion in Tijuana.

• Free cash flow for Q3 was MXN 183.3 million, and for the first nine months, MXN 342.3 million.

• The company was recognized as an EDGE Champion 2025-2026 by IFC for sustainable construction.

• The company expects to maintain positive momentum, with projected free cash flow of around MXN 500 million for the year.

Financial highlights

• Operating margin for Q3 2025 was 9.8%, net margin rose to 10%, and EBITDA margin increased to 49.8%.

• For the first nine months, total revenue grew 11.1% to MXN 5.93 billion, net income rose 9.5% to MXN 551.3 million, and EBITDA increased 5.4% to MXN 840.1 million.

• Average home price in Q3 was MXN 1,348,300, up 11.5% year-over-year.

• 3Q25 gross profit was MXN 536.2 million with a gross margin of 26.7%.

• EPS for the twelve months ended September 2025 was MXN 0.602, up 15% year-over-year.

Outlook and guidance

• Revenue mix is expected to stabilize with 30% from affordable entry-level, 35-36% from middle-income, and 30% from residential segments in 2026.

• Positive free cash flow generation is expected to continue, with around MXN 500 million projected for 2025.

• Management expects to maintain positive momentum and close the year with strong results.

• New affordable entry-level project in Tijuana will contribute to revenues next year.