PDG Realty SA Empreendimentos e Participações (PDGR3) Q2 2025 earnings summary

Executive summary

• Gross sales in 6M25 rose 21% year-over-year to R$43.5 million, with net sales up 73% to R$31.6 million, reflecting strong operational performance and a 33% reduction in cancellations.

• Operational focus included advancing the ix.Tatuapé project to 82% completion and hiring a contractor for ix.Santana, both in São Paulo.

• Strategic initiatives included a capital increase to convert extraconcursal debts and ongoing deleveraging efforts.

• Inventory of completed and launched projects fell 43% year-over-year to R$209.9 million at 2Q25, driven by higher sales.

Financial highlights

• Gross profit for 6M25 was R$20.4 million (37% margin), reversing a prior loss; 2Q25 gross profit was R$9.7 million at a 33% margin.

• Net operational revenues for 6M25 were R$54.4 million, up 57% year-over-year.

• Net loss for 6M25 was R$183.1 million, a 35% increase in losses year-over-year, mainly due to fair value adjustments on debts.

• SG&A expenses fell 23% year-over-year in 6M25, with selling expenses down 44% and G&A down 6%.

• Cash and equivalents at quarter-end were R$29.7 million, down 29% year-over-year.

Outlook and guidance

• ix.Tatuapé is scheduled for delivery in 4Q25, with nearly 80% of units sold.

• Capital increase of R$345.3 million approved for debt conversion, supporting further deleveraging.

• Concursal debt matures through 2042 and may be amortized via asset payments or equity conversion as per the reorganization plan.

• Extraconcursal debts are under ongoing renegotiation and may be included in judicial recovery.

• Continued focus on operational efficiency, cash flow strengthening, and cost reduction.