Nexity (NXI) Q4 2025 earnings summary

Executive summary

• Achieved significant deleveraging and risk reduction, with net financial debt reduced to €278–328 million at year-end 2025, halved over two years, and a leverage ratio of 4.9, ahead of banking covenant targets.

• Returned to positive current operating profit of €25 million in 2025, a turnaround from a €118–140 million loss in 2024, driven by restored margins and cost savings.

• Completed a major restructuring, focusing on core activities, streamlining operations, and implementing a cost savings plan delivering €92 million out of a €100 million target.

• Maintained leadership in Residential Real Estate with over 12,000 reservations, a 13% market share, and strong homebuyer momentum (+19%), outperforming a declining market.

• Leadership transition announced, with Deputy CEO Jean-Claude Bassien stepping down after seven years.

Financial highlights

• Group revenue at €2.8 billion, down 14–15% year-over-year, mainly due to an 87% drop in commercial property revenue after a major project delivery in 2024.

• Residential housing contributed 83% of revenue, down 5% year-over-year; service property revenue up 9% due to fleet expansion and high occupancy.

• Net income includes a non-recurring negative result of -€128 million and a group share net loss of €188 million, reflecting disposals, discontinued operations, and reorganization costs.

• Gross debt reduced to €914 million, down 17% year-over-year, with cost of debt at 2.8%.

• Free cash flow positive at €107 million; operating cash flow remains positive even excluding disposals.

Outlook and guidance

• Focus on further improving operating profitability and reducing leverage ratio below 3.5x by 2027.

• Revenue expected to decline in 2026 due to lower reservations, with a turning point anticipated in 2027.

• Targeting a return to a 7% operating margin by 2027–2028, contingent on new project rollouts and post-election momentum.

• New operational model to capitalize on market rebound, focusing on affordable, low-carbon, high-quality homes.