Instone Real Estate Group (INS) Q2 2025 earnings summary

Executive summary

• Achieved solid H1 2025 results amid macro uncertainties, with retail sales up 58% year-over-year and strong demand from private investors and owner-occupiers; first institutional deal signed in Q3, with more in negotiation.

• Five new project acquisitions with a GDV of €350 million signed or near signing, expanding the pipeline and targeting above-average margins and IRRs.

• Board stability ensured with early contract extensions for key executives, including CEO and COO.

• The project portfolio remains robust at €6.84 billion, with 43 projects and 13,793 units.

• Cash and cash equivalents stood at €425.3 million, and the equity ratio was 29.3% as of June 30, 2025.

Financial highlights

• Adjusted revenues reached €231 million in H1 2025, with a gross margin of 25.3% and adjusted earnings after tax of €17.2 million.

• H1 sales grew 58% year-over-year in retail, with total H1 sales at €96.3 million.

• Net financial debt at €157.7 million as of June 30, 2025; net debt to EBITDA at 2.8x and loan-to-cost ratio at 12%.

• Liquidity position exceeded €270 million at Q2 end, with significant net cash at the corporate level.

• Adjusted EBIT for H1 2025 was €28.9 million, with an EBIT margin of 12.5%.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue €500–600 million, gross margin ~23%, adjusted earnings after tax €25–35 million, and sales volume above €500 million.

• Expect stronger H2 due to new project sales, institutional deals, and seasonality, though sales volumes are not anticipated to reach pre-crisis levels.

• Leverage ratios expected to rise with planned growth investments but remain below 40% ATC.