Cury (CURY3) Posts Record Q1 Production as Sales Top R$2.3B

Brazil’s Cury Construtora (CURY3) delivered another strong quarter that underscores why the affordable housing builder remains a standout performer on the B3, combining record production with disciplined cash generation even as interest rates stay elevated.

Cury’s Q1 2026 operational preview, released Thursday by Money Times, showed net sales of R$2.304 billion (~$443 million), a 9.5% increase from the same period last year. On a trailing twelve-month basis, sales reached R$7.949 billion (~$1.53 billion), up 18.4%—confirming the company’s position as one of the fastest-growing listed homebuilders in Latin America.

Production Surges While Mix Stays Affordable

The headline figure was production: 4,633 units built in Q1, a 37.8% jump year-on-year that represents a new quarterly record. Over twelve months, output reached 18,060 units, up 25.0%. The surge reflects Cury’s strategy of front-loading construction activity into the first half of the year, a pattern its executives have described as deliberate since at least 2025.

The sales mix remained firmly anchored in the affordable segment. Units priced at R$500,000 (~$96,000) or below accounted for 86.5% of all sales, consistent with Cury’s role as a primary beneficiary of the Minha Casa Minha Vida (MCMV) government housing program. The average sale price edged up 4.9% to R$325,400 (~$62,600), a modest increase that suggests pricing discipline rather than a shift upmarket.

Launches Dip, but Cash Generation Soars

Cury launched 10 developments in the quarter with a combined general sales value (VGV) of R$2.646 billion (~$509 million), a 4.9% decline from Q1 2025. The slight pullback in launches, however, was more than offset by stronger execution on existing inventory. Repassed VGV—a measure of units transferred to bank financing—rose 19.3% to R$1.339 billion (~$258 million), covering 4,364 units, up 15.4% year-on-year.

The most striking number was operating cash generation: R$93.4 million (~$18 million) in Q1, a 263.4% increase from R$25.7 million a year earlier. Over twelve months, cash generation totaled R$750.9 million (~$144 million), up 58.0%. That streak—now extending well beyond 26 consecutive quarters of positive operating cash—is a key reason analysts at XP Investimentos and BB-BI maintain Cury as a top pick in Brazilian homebuilding, as noted in the company’s Q4 2025 earnings coverage.

Landbank Signals Long-Term Confidence

Cury ended March with inventory of R$2.805 billion and a landbank of R$24.9 billion (~$4.8 billion) in potential VGV, equivalent to 82,119 units—a 25.8% expansion year-on-year. The growing land reserve suggests management sees no near-term ceiling on demand, particularly in its core markets of São Paulo and Rio de Janeiro where the MCMV Faixa 4 expansion has widened the eligible buyer pool to families earning up to R$12,000 per month.

The results arrive amid a broader boom in Brazil’s affordable housing sector that has defied the high-interest-rate environment. While the Selic rate remains elevated, MCMV borrowers access subsidized credit through FGTS funds at rates well below market, insulating the affordable segment from monetary tightening that has squeezed mid- and high-income buyers.

For investors, the Q1 preview reinforces Cury’s thesis as a growth-plus-cash compounder. XP projects a 30% earnings-per-share compound annual growth rate through 2027, with dividend yields estimated at 7% for 2025 and 10% for 2026. Whether those projections hold will depend on whether Cury can sustain margins as labor costs rise and whether the MCMV budget—expected to reach roughly R$190 billion (~$36.5 billion) this year—remains fully funded through the 2026 election cycle.

Related Coverage: Cury (CURY3) Profit Surges 63% in Q4, Beats Consensus • Cury’s Record 2025 Sets Up a High-Stakes 2026 Test • Brazil’s Housing Boom: 23% Surge in New Home Sales