Construtora Tenda (TEND3) Q1 2025 earnings summary

Executive summary

• Achieved record-high first-quarter gross sales of R$1,213.4 million, up 12.7% year-over-year, with historic gross margin and net income in the Tenda segment, and strong growth momentum in both Tenda and Alea brands.

• Net pre-sales reached R$1,088.3 million, up 12.7% year-over-year and 10.6% sequentially, with Net SoS of 25.8%.

• Launched 13 developments totaling R$914.5 million, a 19.8% increase year-over-year, and landbank expanded to R$23,419.1 million in PSV, up 22.9% year-over-year.

• Positive sector outlook driven by government housing program updates and favorable market conditions at federal, state, and municipal levels.

• Focus remains on healthy sales, operational efficiency, and sustainable growth across both brands.

Financial highlights

• Net revenue was R$865.2 million, up 16.2% year-over-year and 1.7% sequentially, with adjusted gross profit at R$291.0 million, up 45.5% year-over-year.

• Adjusted gross margin in Tenda reached 36.7%, a record level for the segment, maintained above 36% for two consecutive quarters.

• Record-high quarterly net income of R$85.5 million, with Tenda contributing R$104.9 million and Alea posting a net loss of R$19.4 million as it stabilizes.

• Operational cash generation exceeded R$90 million, but non-recurring effects led to a total cash consumption of R$37 million.

• Record-high quarterly EBITDA of R$152.9 million, up 50.5% year-over-year, with margin at 17.7%.

Outlook and guidance

• Guidance for 2025 net income is R$360–400 million, with the first quarter already achieving 29% of the lower limit.

• Adjusted gross margin guidance for 2025 is 34.0–36.7%.

• Alea segment guidance: adjusted gross margin between 20–24%, net pre-sales R$700–800 million, and net income up to R$20 million.

• Expectation of higher concentration of launches and sales in the second half of the year, with potential for guidance revision mid-year.

• Management expects favorable conditions for low-income housing to persist, with continued growth and margin improvement.