EZTEC Reports Strong Q1 2025 Performance with 35% Growth in Launches

EZTEC released its operational data for the first quarter of 2025, showing significant growth in project launches and resilient sales performance.

The Brazilian real estate developer achieved launches totaling R$616 million ($104.4 million) in the period, representing a 35% increase compared to the same quarter last year.

The company launched two new projects during Q1, focusing on high and middle-income segments. These launches contributed to a substantial 135% increase compared to the fourth quarter of 2024.

The velocity of sales showed marked improvement, rising from 4% to 7%, while consolidated sales velocity reached 12%. Net sales remained strong at R$385 million ($65.3 million), showing a 32% year-over-year growth.

This performance was achieved despite typical first-quarter seasonality challenges for high-end projects. The SP360º project, launched only in March, already achieved 38% of units sold, demonstrating strong market acceptance.

Financial analysts maintain cautiously optimistic views on EZTEC’s performance. XP classified the operational data as “slightly positive,” highlighting the company’s increased appetite for new project launches.

XP maintains a neutral recommendation with a 2025 target price of R$18 ($3.05), citing concerns about pressure on return on equity compared to industry peers.

BBI analysts noted significant evolution in the company’s sell-out to sell-in ratio, reflecting management efforts to shift from a historically margin-focused strategy toward improved sales velocity.

EZTEC Shows Strong Growth Despite Economic Challenges

They project an ROE around 8% between 2025-2026, supporting their neutral recommendation with a target price of R$17 ($2.88). Itaú BBA also rated the results as slightly positive, emphasizing the acceleration in launches and improved sales velocity.

Santander noted that while operational numbers fell slightly below their estimates, the company showed solid performance in new launches. EZTEC’s financial trajectory shows consistent improvement since 2023.

The company recorded a record revenue of R$1.56 billion ($264.4 million) in 2024, representing 44% growth compared to 2023. Net income reached R$404.6 million ($68.6 million) in 2024, a 69% increase from the previous year.

The company’s land bank reached R$11 billion ($1.86 billion) in potential development value after project revaluations, representing a 17.9% increase from the end of 2023. Approximately 70% of this land bank targets middle and high-income segments, with 29% allocated to the economic segment.

Despite rising mortgage rates affecting affordability, particularly for middle-income buyers, EZTEC continues to deliver solid results. The company’s shares were trading at R$14.96 ($2.54) at midday, down 3.48%.

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