MRV Engenharia e Participações (MRVE3) Q1 2026 earnings summary

Executive summary

• Net operating revenue grew 18% year-over-year in 1Q26, with gross margin up 1.4 p.p. and net profit reaching R$133 million compared to 1Q25.

• Operational improvements included higher production and transfers, with a strong backlog of units to be transferred into 2Q26.

• Cash generation was robust, supported by asset sales in the US and strong performance in Brazilian real estate development.

• The Minha Casa Minha Vida program's enhancements expanded purchasing power, supporting a favorable market outlook.

Financial highlights

• Net revenue rose to R$2,562 million, up 17.6% year-over-year.

• Gross margin improved to 31.0%, up 1.4 p.p. from 1Q25.

• Adjusted net profit surged to R$133 million, a 640.4% increase year-over-year.

• EBITDA reached R$476 million, up 38.5% from 1Q25.

• Cash generation in real estate development was R$117 million, with consolidated cash and equivalents at R$450 million.

Outlook and guidance

• Gross margin is expected to resume quarter-over-quarter expansion from 2Q26 as inflation adjustments are incorporated.

• Inventory built at lower costs will serve as an inflation hedge, with price increases planned above inflation.

• Operational and financial indicators for Urba are expected to improve in 2026.