Moura Dubeux Engenharia (MDNE3) Q2 2025 earnings summary

Executive summary

• Achieved record launches of BRL 1.9 billion in Q2 2025, up 192.4% year-over-year and 363% sequentially, with a strong focus on closed condominium and Mood projects.

• Net revenue for Q2 2025 reached BRL 665 million, a 69.6% increase year-over-year and over 50% above Q1, driven by robust sales and project deliveries.

• Achieved record net profit of BRL 120.3 million in Q2 2025, up 60.6% year-over-year and 70.9% quarter-over-quarter, with net margin at 18.1%.

• Maintained a conservative capital structure with net debt at 10.7% of equity and a strict leverage ceiling of 20%.

• Strategic shift towards luxury, high-income, and mid-income segments, with Mood and Única brands targeting middle and Minha Casa, Minha Vida sectors.

Financial highlights

• Q2 net revenue: BRL 665 million (+69.6% YoY, +50% QoQ); YTD revenue surpassed BRL 1 billion (+68% YoY).

• Adjusted gross margin for Q2: 34.4%; consolidated margin YTD: 38%.

• Adjusted EBITDA for Q2 2025 LTM: BRL 375 million, up 54.4% from 1H24.

• Net profit YTD: BRL 190 million (+66% YoY); net margin: 19%.

• Dividend payout of BRL 105 million in the last 12 months, with plans for BRL 50 million more by year-end.

Outlook and guidance

• 2025 guidance: launches expected to surpass BRL 4 billion, with a new profitability floor of BRL 380 million.

• Launches for 3Q25 (July and August) expected to reach BRL 1.3 billion, with YTD launches at BRL 3.6 billion.

• No commitment to aggressive growth; focus remains on profitability and maintaining low leverage.

• Expectation of strong cash generation starting in H2 2026, with continued dividend payments.

• Entering 2H25 with a robust pipeline, including new launches in the Mood brand and expansion in high-end condominiums.