Cyrela Brazil Realty S.A. (CYRE3) Q1 2026 earnings summary

Executive summary

• Maintained a disciplined approach amid challenging macroeconomic conditions, with high interest rates and geopolitical uncertainties impacting supply chain and construction costs.

• Net revenues reached R$2,025 million in 1Q26, up 4% year-over-year but down 37% from 4Q25.

• Launches totaled R$1,747 million (ex-swaps, %CBR), a 48% year-over-year and 47% quarter-on-quarter decrease, with strong customer acceptance (SOS 45.8%).

• Pre-sales reached R$2,164 million, up 2% year-over-year but down 9% from 4Q25.

• Cash generation was R$134 million, up 88% year-over-year and a significant improvement from a cash burn of R$38 million in 4Q25.

Financial highlights

• Gross margin stood at 32.9%, up 0.4 p.p. year-over-year and 0.6 p.p. sequentially.

• Net income was R$297 million, a 9% decrease year-over-year and 56% decrease quarter-on-quarter; net margin was 14.7%.

• Adjusted ROE for the last twelve months was 21.2%.

• Adjusted net debt/adjusted equity ratio decreased to 19.6%, down from 21.5% in 4Q25.

• EPS for the quarter was R$0.68, compared to R$0.89 in 1Q25 and R$1.57 in 4Q25.

Outlook and guidance

• No formal guidance provided; expects 2026 to be similar to 2025, with stable or slightly lower launches and potential for high single-digit revenue growth if current sales levels are maintained.

• Vivaz segment may see some growth, but overall launches likely to be slightly below 2025 levels.

• SG&A expected to remain around 15% of revenue, growing slightly above inflation.

• Management notes that forward-looking statements depend on market conditions, government rules, competition, and the Brazilian economy.

• The company will maintain a disciplined approach to new project selection and conservative capital management.