Instone Real Estate Group (INS) Q3 2025 earnings summary

Executive summary

• Retail sales grew 88% year-over-year in 9M 2025, marking the strongest private customer business since 2022, while the first institutional deal of €55 million was closed and further deals are in advanced negotiation.

• Project acquisitions with GDV over €1.1 billion secured year-to-date, with a diversified portfolio of 46 projects and 14,187 units totaling €7.1 billion GDV as of 30/09/2025.

• Strategy is increasingly focused on buy-to-let investors, leveraging favorable tax incentives and strong demand.

• Project portfolio remains concentrated in major German metropolitan regions, with 98% of projects in these areas.

Financial highlights

• Adjusted revenues for 9M 2025 were €347.5 million, down 9.6% year-over-year, with gross margin at 23.9% and adjusted earnings after tax at €21.4 million.

• Q3 2025 revenues were €116.5 million, a 7.3% decrease from Q3 2024; EBIT for Q3 was €6.3 million, and EAT margin at 3.6%.

• Sales contract volume rose to €229 million (450 units), up from €156.6 million (336 units) in the prior year period.

• Liquidity at end of Q3 exceeded €220 million, with net corporate cash of €150 million and net financial debt at €159.7 million.

• Free cash flow was €-25.7 million, a significant decline from €132.4 million in the previous year.

Outlook and guidance

• Full-year 2025 guidance confirmed: sales contract volume above €500 million, adjusted revenues in the lower half of €500–600 million, gross margin around 23%, and adjusted EAT of €25–35 million.

• Expecting 10 sales launches in 2025, with further increase in 2026 and a target of €2 billion GDV in acquisitions by end of 2026.

• Demand is expected to rebound but not to pre-crisis levels in 2025.