MRV Engenharia e Participações (MRVE3) Q4 2025 earnings summary

Executive summary

• Achieved strong profitability growth and capital discipline, completing a turnaround in core real estate operations, with record gross margin and strong cash generation in Q4 2025.

• Net operating revenue for 2025 reached R$10.1 billion, up 40% from 2023 and 20% year-over-year.

• Adjusted net profit totaled R$611 million in 2025, reversing a R$132 million loss in 2023.

• Focus remains on efficiency, cash generation, and shareholder returns entering 2026.

• Subsidiaries Luggo and Urba showed strong performance, with Urba's sales up 40% year-over-year and net income of BRL 20 million.

Financial highlights

• Annual net revenue was R$10.1 billion (+40% vs. 2023, +20% YoY); Q4 2025 net revenue was R$2.8 billion (+26.7% YoY).

• Gross margin in Q4 2025 was 31%, the highest in 26 quarters; annual gross margin was 30.4%, up 7.7 p.p. from 2023 and 4 p.p. from 2024.

• Adjusted EBITDA for 2025 was R$1.94 billion, up 69.8% year-over-year; Q4 2025 EBITDA was R$602 million, up 113% YoY.

• Adjusted net income in 2025 was R$611 million, more than double 2024 and reversing prior losses.

• Q4 2025 launches totaled BRL 2.9 billion, up 21% sequentially; annual launches reached BRL 11.5 billion, double 2023.

Outlook and guidance

• 2025 guidance was met or exceeded for revenue and gross margin; adjusted net profit reached R$611 million, slightly below guidance.

• Cash generation was impacted by a 5,000-unit gap between production and transfers, representing ~R$600 million.

• 2026 is expected to see continued margin improvement, strong cash-to-profit conversion, and further growth.

• Launches and sales in early 2026 are stronger than the previous year, with optimism for further growth.

• New launches for 2026 expected to surpass 2025, with higher sales over supply.