Echo Investment (ECH) Q4 2025 earnings summary

Executive summary

• Achieved record residential sales and handovers, with Archicom delivering 2,850 apartments and a 30% year-over-year sales growth, doubling handovers compared to 2024.

• Significant commercial asset disposals, including City 2 Brain, Libero Shopping Center, and Brain Park A and C, totaling around EUR 300 million in 2025.

• Resi4Rent platform signed a landmark deal to sell 18 projects, including 5,322 units to TAG Immobilien, with continued growth and high occupancy rates in PRS and student housing.

• Group-wide focus on operational efficiency, scalable growth, and maintaining strong market positions in Warsaw, Wrocław, Kraków, Łódź, and Poznań.

• Dividend of PLN 330 million (PLN 0.80/share) paid to investors in 2025.

Financial highlights

• Archicom reported revenue of PLN 961.7 million in 2025, gross profit of PLN 320.6 million, and a gross margin of 33.3%.

• Echo Group’s Q4 net profit exceeded PLN 100 million, with Q4 2025 net profit at PLN 109.1 million, reversing a loss from the prior year.

• Full-year revenue reached PLN 2,012.7 million, with Q4 revenue at PLN 826.4 million.

• Total assets grew over 30% to PLN 3.739 billion, with significant increases in inventory and client prepayments.

• Debt ratio at year-end was 0.6x (39.9%), with a target to reduce to 0.5x and eventually 20%-30% as residential share grows.

Outlook and guidance

• Targeting 3,200–3,500 residential sales and 3,000 handovers in 2026, with ambitions to become a top-three developer in Poland.

• Continued focus on land acquisition, with a planned spend of PLN 600–700 million in 2026.

• Free cash from 2026 sales (>PLN 0.5 billion) to be used for debt reduction, new investments, and dividends.

• Ongoing commercial asset disposals, with plans to free up PLN 0.5 billion in cash and further reduce debt.

• Expansion into Tri-City market under consideration, with preference for larger acquisitions.