UBM Development (UBS) Q2 2025 earnings summary

Executive summary

• Achieved break-even in Q2 2025, signaling a return to profitability expected in H2 2025, with net loss halved year-over-year for H1 2025.

• Residential sales more than doubled year-over-year in H1, with a strong pipeline of 2,800 apartments over four years.

• Liquidity and refinancing positions are robust, with all 2025 and 2026 obligations well covered and equity ratio improved to 30.1%.

• ESG and green financing remain a strategic focus, with industry-leading sustainability credentials and continued green bond reporting.

• Real estate market benefits from a flight to real assets amid macroeconomic uncertainty.

Financial highlights

• Earnings before tax improved by 47% in H1 2025, reaching -€5.8m from -€10.9m year-over-year.

• Total output fell 43.7% to €140.3m, while revenue increased 39% to €59.6m, driven by progress on sold projects.

• Net loss reduced to €-6.6m (H1 2024: €-12.5m); EPS improved to €-1.32 (H1 2024: €-2.06).

• Cash position increased by 17.3% from Q1 to €167.3m at HY 2025.

• Equity ratio restored to 30.1%, within the 30%-35% target range.

Outlook and guidance

• Confident in returning to profitability in H2 2025, with positive momentum expected to continue, but no specific numeric guidance due to ongoing uncertainties.

• Strategic focus on residential projects, with 58% of the pipeline in this asset class.

• Survivors in the sector expected to benefit from market shakeout and supply shortages.

• Demand-supply imbalance in residential real estate expected to drive future growth.

• Office market uncertainty to persist through 2025.