Moura Dubeux Engenharia (MDNE3) Q1 2025 earnings summary

Executive summary

• Achieved record net profit of R$70.4 million in 1Q25, up 67.0% year-over-year, with a net margin of 16.0% and ROAE of 18.7%.

• Net revenue reached R$439.0 million, a 42.3% increase year-over-year, driven by strong development project contributions and land development fees.

• Launched 3 projects totaling R$402 million in Net PSV, with robust sales performance and healthy inventory levels.

• Ended the quarter with 56 projects in progress and a landbank of 59 plots valued at R$9.6 billion in Gross PSV.

• Maintained a cautious approach to launches and sales, focusing on execution, profitability, and low leverage, while capitalizing on high demand for new projects in key markets.

Financial highlights

• Net profit: R$70.4 million (+67.0% YoY, +56.5% QoQ); net margin: 16.0%.

• Net revenue: R$439.0 million (+42.3% YoY, +19.4% QoQ).

• Gross profit: R$156 million (+45% YoY); gross margin: 26.7%.

• Adjusted gross margin: 36% in 1Q25.

• Adjusted EBITDA: R$89.1 million (+65.3% YoY, +67.3% QoQ); margin: 20.3%.

• Free cash flow for LTM: R$36.0 million (ex-dividends).

Outlook and guidance

• Management expects to surpass BRL 2 billion in annual revenue in 2025, with continued strong sales and launches, especially in condominiums and the Mood brand.

• Management expects to surpass 20% ROAE in 2025.

• Two major launches planned for 2Q25, including iconic projects in Recife (Lucena Plaza, R$485 million) and Fortaleza (Mansão Seara, R$341 million).

• Gross margin for development is expected to remain at or above 30% for 2025, with potential for further improvement as the Única model is integrated.

• Dividend payments of BRL 100 million are planned for 2025, with potential for extraordinary dividends if cash generation exceeds expectations.