MRV’s U.S. Expansion Falters, Forcing Major Sell-Off and Strategy Shift

Brazil’s top homebuilder, MRV&Co, faces a tough reckoning after its U.S. expansion through subsidiary Resia led to heavy losses and urgent changes.

Official company reports show MRV&Co lost $43.8 million in early 2025, with its U.S. division Resia losing $46.6 million in the same period.

The company now admits it must write down up to $144 million in U.S. property values after projects like Dallas West failed to deliver expected returns.

MRV&Co’s U.S. debt ballooned to $639 million, forcing the company to announce the sale of $800 million in American assets by 2026. The company hopes these sales will bring in $493 million in cash, with $365 million to pay down debt and $128 million to return to investors.

This is a major revision from earlier plans, which expected only $270 million in cash from asset sales by the end of 2025. To avoid repeating past mistakes, MRV&Co is overhauling Resia’s business model.

MRV&Co Cuts U.S. Exposure to Boost Returns

The company will cut annual costs from $30 million to $10 million, limit new U.S. projects to just two per year, and reduce its own investment in each project from 30% to 10%.

MRV&Co will also sell off more than half its U.S. land holdings and rely more on outside financing. The company expects these moves to boost project returns, with targets rising from 36% to 55%.

Leadership changes are underway as MRV&Co tries to steady Resia. The company wants to focus on its main business in Brazil, where demand for affordable housing remains strong.

MRV&Co’s shares have dropped sharply, falling 62% over five years and 10% in one week after the latest news. This story shows how expanding into new markets can backfire if risks are not managed carefully.

MRV&Co’s experience is a warning to other companies: international growth needs discipline, local knowledge, and a clear plan to handle setbacks.

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