Develia (DVL) Q2 2025 earnings summary

Executive summary

• Consolidated revenues reached PLN 748.3m in H1'2025, up 15.4% year-over-year, with net profit at PLN 173.4m, up 17% year-over-year, driven by strong residential sales and a major land transaction.

• Sold 1,699 premises in H1'2025 (55% of annual target), delivered 1,193 premises (41% of target), and started construction on 1,747 new premises (56% of target).

• Completed the acquisition of Bouygues Immobilier Polska (now Develia Vita) for EUR 65.9m, expanding the land bank to 14,880 units and project pipeline.

• Finalized the sale of Arkady Wrocławskie for EUR 43m, boosting cash flow and reducing debt, and completing the commercial segment divestment.

Financial highlights

• Adjusted net profit (excluding revaluation) reached PLN 178.3m, up 45.7% year-over-year.

• Gross margin for H1'2025 was 36.7%, slightly down from 36.5% in H1'2024.

• Operating profit for H1'2025 reached PLN 182.0m, up 3% year-over-year.

• Net cash from operating activities was PLN 138.7m, up from PLN 42.4m in H1'2024.

• Equity increased to PLN 1,632.9m as of June 30, 2025.

Outlook and guidance

• 2025 sales target set at 3,100–3,300 units; delivery target at 2,900–3,100 units; new premises to be added to the offer also targeted at 3,100–3,300 units.

• Long-term strategy aims for 4,500 flats sold annually by 2028 and a land bank for 15,800 premises.

• Management expects continued growth in residential sales, supported by the expanded land bank and integration of Develia Vita.

• Dividend potential above PLN 1.35bn for 2024–2028, with a payout ratio above 75%.