UBM Development (UBS) Q3 2025 earnings summary

Executive summary

• Residential sales increased 25% year-over-year for the first three quarters of 2025, with 355 apartments sold and a pipeline of 2,800 units supporting future growth in major European cities.

• Achieved a second consecutive profitable quarter in Q3 2025, with earnings before tax of €1.9 million and revenue for the first nine months reaching €97.3 million.

• Strong balance sheet with an equity ratio of 30% and successful capital market activity, including €166.5 million raised and a full transition to green bond financing.

• Business model improvements and a climate transition plan are underway, focusing on timber construction and decarbonization.

• High pre-sale levels in Vienna and Prague provide forward visibility and resilience in core markets.

Financial highlights

• Q3 2025 earnings before tax reached €1.9 million, marking the second consecutive profitable quarter.

• Revenue for the first nine months of 2025 totaled €97.3 million, reflecting continued sales momentum.

• Net debt stands at €583.2 million; balance sheet total is €1.164 billion.

• Equity amounted to €348.9 million at quarter-end, with an equity ratio of 30%.

• Cash and cash equivalents at the end of Q3 2025 were €142.3 million.

Outlook and guidance

• 2025 is expected to be significantly better than 2024, with continued profitability and growth in residential and a potential recovery in hotels.

• Apartment sales projected to exceed 450 units for the year, a 10% increase year-over-year.

• 2026 is expected to remain challenging but will lay the foundation for future profits, with survivors benefiting from market consolidation.

• Continued focus on liquidity and cautious project starts, especially in the office segment, requiring pre-leases above 25%.

• Q4 is anticipated to be a logical continuation of Q3, with a full-year result around break-even.