Cury Construtora e Incorporadora (CURY3) Q2 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 998.1 million in Q2 2024, up 37.2% year-over-year, with strong project launches in São Paulo and Rio de Janeiro and high sales velocity supporting expansion.

• Net income reached BRL 175.3 million in Q2 2024, a 41.3% increase year-over-year, with a net margin of 17.6%.

• Eight projects launched in Q2 2024 contributed to a PSV of BRL 1.73 billion, with net pre-sales of BRL 1.749 billion and a net sales speed (SOS) of 50.5%.

• Land bank reached a record BRL 17.6 billion in PSV, up 72.7% year-over-year, supporting future growth.

• Maintained strong operational and financial standards, with robust cash generation and a positive outlook for the remainder of the year.

Financial highlights

• Adjusted gross margin was 38.5% in Q2 2024, up 0.6 p.p. year-over-year and 0.5 p.p. sequentially.

• Net margin reached 17.6%, compared to 16.7% in Q2 2023 and 17.0% in Q1 2024.

• ROE reached 62.0% in Q2 2024, up 13.0 p.p. from Q2 2023.

• Operating cash generation was BRL 152.1 million in Q2 2024, up 39.5% year-over-year.

• Adjusted EBITDA reached BRL 211.0 million in Q2 2024, up 35.6% year-over-year, with a margin of 21.1%.

Outlook and guidance

• Management expects continued strong demand and robust operational execution for the remainder of 2024, with sales and launches in line with Q2 performance.

• Positive outlook for the year is supported by high demand, efficient execution, and a record land bank that supports operations for at least the next three years.

• Strategy in 2024 is focused on higher price brackets, including segments above the Minha Casa, Minha Vida program.