Good morning, everyone, welcome to our first half of 2026 presentation. I will start with the highlights, I would catalog our results as solid in this first half of the year. Our total revenues are close to EUR 316 million, which is 2.4 x what we had last year, mainly driven by 809 units delivered in this period. We are also confirming our gross margin improvement, which stands at 27.2%, boosting our EBITDA to close to EUR 50 million, also a positive net profit of close to EUR 80 million compared to negative figure last year. We've had a strong cash flow generation of close to EUR 130 million, also with a stable debt position despite the significant dividend that we already paid in May of almost EUR 1 per share.
In the market context, we will see that the Spanish housing demand remains at healthy levels despite a moderation that we see in some transaction volumes, especially in second-hand and in some limited markets. I think I will skip page number seven, as we will touch upon the details later in the presentation. I hand it back to Juan Carlos to give us a brief overview on the market, page number eight.
Yes, just briefly comment on the recent figures about demand and the number of transactions seems to be stabilizing above 700,000 units in the year. It's true that in the last few months, in the beginning of the year, we have seen some slowdown in the volume with a decline of around 3% year-on-year. Actually, the total figure stays above 700,000, which is, in our view, a very healthy and robust indication of demand. On the other hand, house prices continue to increase according to the official statistics. They're still growing at double-digit year-on-year, driven by the imbalance between supply and demand. Construction costs are showing some volatility in the recent months, but they are growing by lower growth rates than prices, and this is supporting development margins. On the other hand, mortgages are growing slightly more than the volume of transactions.
That means that the penetration of mortgages is rising slightly to around 72%. Overall, these pictures and overall quite a healthy situation of the housing market in Spain. Back to Jorge.
Yeah, thank you, Juan Carlos. Moving on to the operational figures. In terms of residential deliveries, we delivered a total of 809 units, which is almost double what we delivered last year, with an average selling price of EUR 343,000 per unit, which is an 11% increase. With this number of deliveries, we provide a more homogeneous distribution of the deliveries throughout the year and also gives us more clarity on our target to deliver around the same units as we delivered last year. As I mentioned before, our margin improvement consolidates and we stand at 27.2% gross margin compared to 22% last year. Our deliveries have been focused on key markets like Valencia, Sevilla, Barcelona, Malaga, and some in the Canary Islands.
In terms of pre-sales, we pre-sold in total 607 units, which is an evolution consistent with our strong pre-sales coverage for the coming years and for 2026 as well, obviously, and represents a 15% quarter-over-quarter increase as compared to the first quarter. The average selling price of these pre-sales is above the figure we saw before and is close to EUR 380,000. We've also started commercialization during the quarter, at the end of part of the quarter, in some key areas like Los Cerros in Madrid, which, as you know, is one of our strategic developments where we have close to 2,000 units to be constructed and delivered in the future.
In Murcia, where we have is an area which is the functioning really well at the beginning, and we have around 550 units in total, and also in Lleida with a project of 240 units or 250 in total, where we've started selling phase 1 also at the end of the period. In terms of other key operational figures, our sales backlog stands at 2,900 units in total, representing EUR 1.1 billion in future revenues, with an average price of around EUR 370,000 per unit. Our future deliveries are well covered and the ratios keep improving. With 94% of the deliveries of 2026 already sold, close to 80% of 2027 and 40% of 2028. This also with a high reliability of close to 80% in private contracts with more than 10% down payment. We have around 3,400 units under construction.
We've started 255 units in this first half of 2026, and we plan to start around 1,800 units in the total of the year. Even if this figure may seem small, we are planning to start around the units that we've been delivering in the last couple of years by the end of the year. In commercialization, we have about 5,300 units with a potential revenue of EUR 2 billion and a price per unit of around EUR 380,000. We still keep seeing that on the backlog figures and future commercialization units, the selling price keeps improving. 55% is already pre-sold, we have another 2,000 active units in the design phase that will come into commercialization in the coming months. In terms of land activity, we've had a strong land monetization period and the pipeline replenishment.
In total, our P&L revenues in the first half of the year stands at EUR 38 million. The majority is corresponding to the authorization of a plot in Valdebebas, in addition to other minor residential non-strategic plots in non-core markets. We've also sold, as you may have seen in our announcement and in the press, the Puerto Somport office building that we co-developed with Tishman Speyer, which will have EUR 7 million cash flow impact, but doesn't show in the P&L in the revenue line because it's actually accounted for in the equity method. We also have EUR 134 million in binding contracts, which will come into the P&L in the coming years, part of it in 2026 and part of it in 2027.
Additionally, the ongoing commercial developments in the Oria project with the new office that we are doing in a turnkey solution for the fund, Atria, and the two projects of Vita that are not included in the above figures. In terms of land investment, on the other hand, we have signed two JVs with Santander Alternative Investments to develop two co-living projects in Valencia and in Seville, with Metrovacesa holding 10% and the management of the projects. We will continue to explore new co-investment opportunities with other partners in the year. Additionally, we've acquired a project with 367 units in total in Granada for social housing. Diving a bit deeper in our commercial portfolio, we continue reducing our gap in this segment with EUR 283 million now left, which is around 13% of the total Metrovacesa gross asset value.
In the Oria Innovation Campus project, to give you an update, the PBSA building with 585 rooms will be delivered in this quarter, in the third quarter of 2026. The Flex building with 519 rooms, it's progressing adequately in construction and will be delivered in 2027. The office buildings with 48,000 sq m of GLA, in which we are doing a turnkey solution, initiated already the construction, and we are already coming up to the ground zero level in the structure. This represents our largest commercial development with over EUR 350 million in total investment. Also, as I mentioned before, we've sold the Puerto Somport building to the GMP REIT in the Spanish market.
Moving on to page 14, in the ESG arena, we continue implementing our ESG plan 2025-2027, which focuses on climate change mitigation and, in this area, measurement and improvement on the carbon footprint of our developments. Also on energy efficiency, environmental impact, very focused on waste management improvement in all our projects. You can read our 2025 annual sustainability report that has a lot of detail on what we do on this area. Now, I've finished with the operational highlights, and I hand it to Borja Tejada , our CFO, for the financial overview.
Thank you, Jorge. Turning to our profit and loss account, we delivered a very strong first half of the year, with revenues reaching EUR 316 million, up to 138% year- on- year, driven by higher residential deliveries and land sales. Residential revenues grew to EUR 280 million, while land sales contributed EUR 38 million. Importantly, profitability continued to improve. Residential gross margin increased from 22% to above 27%, driving gross profit to EUR 75.5 million and EBITDA to EUR 49 million, with an EBITDA margin of 15.6%. Despite EUR 80 million of mainly non-cash impairments in certain conventional assets, we reported EUR 80 million of net profit and EUR 42 million recurring pre-tax profit, clearly reflecting the strength of the underlying residential business.
In terms of operating cash flow, cash generation was another key highlight. Gross operating cash flow reached around EUR 130 million in the first half, demonstrating a strong cash conversion of earning into cash.
Beyond EBITDA, cash generation benefit from land monetization, including approximately EUR 51 million from land embedded in deliveries and EUR 45 million of cash proceeds from land sales while maintaining disciplined investment levels. The strong performance underpins our confidence in reiterating our guidance of more than EUR 200 million of gross operating cash flow for the year end. In the slide 18, despite paying approximately EUR 137 million in dividends during the semester, our balance sheet remains exceptionally strong. Net debt stood at EUR 308 million, broadly stable versus year-end 2025. We ended June with EUR 160 million of cash, while gross debt increased to EUR 393 million. Our LTV remained at 14.4%, comfortably below our long-term target range from 15%-20%.
In addition, we continue to enjoy significant financial flexibility with more than EUR 300 million of undrawn financing capacity and a syndicated facility with maturity at the end of 2029.
In the slide 19, our asset base continues to create value. Gross asset value increased by 3.2%, like for like, up to EUR 2.14 billion, supported by the performance of the residential portfolio. NAV stood at EUR 11.55 per share, importantly, after adjusting around EUR 1 per share dividend paid during the period. NAV increased by 2.6% compared with December 2025, demonstrating continued value creation despite significant shareholder remuneration. Overall, our portfolio remains highly resilient, with a strong residential structure and NAV that continues to highlight the underlying value of the company. With that, let me hand over to Jorge for the closing remarks.
Thank you, Borja. Let me finish talking about the market. We see the market stabilizing at high levels with transactions remaining very healthy. Over 700,000 total transactions in the last months, despite a slower beginning of the year. Some volatility in construction costs, but still outpaced by house price increase, which in public figures, has been quoted as 13% year- on- year on March 2026. A very solid performance on our side for the first half of the year, with a more homogeneous distribution of deliveries. We confirm our gross margin expansion, boosting a better net profit and with a solid pre-sales coverage that provides visibility not only for the deliveries of 2026, but also for the coming two other years, 2027 and 2028.
Finally, we reiterate our 2026 guidance that, if you remember, was a gross cash flow generation of above EUR 200 million with housing development deliveries in line with what we deliver in 2025 and with significant growth in land sales. That would be all for today. Thank you very much.
Thank you, Jorge. We are now ready to begin the Q&A session. We will first take questions from participants joining via conference call. If you would like to ask a question, please press star five on your telephone keypad, and if you want to withdraw your question, simply press star five again. We will now pause for a few moments to allow participants to register for questions. Our first question comes from Ignacio Domínguez, JB Capital. Please, Ignacio.
Good morning. Thank you for the presentation and for taking my questions. Just one from my side on gross development margins. With gross development margin reaching 27% in the first half, could you provide more color on the sustainability of these margin levels? As we move into the second half, should we expect some normalization in margins due to a poor mix, or do you believe full year 2026 margins can remain close to current levels? Thank you.
Good morning, Ignacio. Jorge here. As I said, we stick to our guidance of mid-20s. Mid-20s, you can either take it as 25 or a range of between 24 and 26. If we take the range, I think we should be on the higher part of the range.
Thank you.
Okay, the next question's coming from the line of Christophe Chaput from Oddo BHF. Please, Christophe.
Yes. Good morning, gentlemen. Hope my line is great. Thank you very much again for the presentation, and congratulations for the results. Honestly, I've got the same question on gross margin. The second one was on your pre-sales. Could you give us your monthly absorption rate that you experienced, let's say, on Q2? Thank you so much.
Hi, Christophe. Thank you very much. Jorge taking the question as well. Okay, the gross margin has been already answered. In terms of the pre-sales, we've had months between 2% and 2.5% on the way that we measure it, that, as you know, is different from some other developers. Our average in the last 12 months, or 24 months, I would say, has been around 2.5%. We are in between that and 2%. On that line, on the pre-sales figures, you could consider it like a low figure. I would like to elaborate a little bit more, some questions have come already offline, whether this is due to the market slowing down or not. I would say that no, the answer is no, actually, even though that the market may have some impact.
The reality in our line is that we are doing, first of all, market margin optimization. As you've seen, our pre-sales coverage is at 94% this year, close to 80% for next year. We only have to sell about 90 units this year, and about 200 and something units for next year to deliver around 1,800 units. Basically, I'm not saying we need to slow down on sales, but we basically can maximize or optimize margins in those developments where we have few units left to be delivered now. We've also had a couple of delays in commercialization starts of two key projects, one in Los Cerros here in Madrid, where we've actually started commercialization of our first project, and a second one is coming very soon. Los Cerros is a huge development for us, where sales will go really well in Madrid.
We started selling in the end of the second quarter after the final approval of the Proyecto de Reparcelación, the reallotment project. This will drive more significant sales in the second part of the year. Finally, we had some forced cancellations. If you see the gross to net figure in sales, it may seem a little bit high, but in three projects, we actually did some cost re-engineering in order to maintain the targeted gross margins as we had higher costs than initially planned. We talked to the clients, and we told them that we were making some changes in the project. Some clients canceled.
Those cancellations, by the way, have been already sold again, but we did have some forced cancellations, and that actually drives that sales figure, those three reasons, to a figure that may seem a little bit low, but it shouldn't be that way in the coming months.
Thank you very much for the clarification. Very clear. Thank you.
Okay. We don't have any more questions from the conference call, we will move on now to the questions submitted through the webcast platform. First question from one investor is saying, "The CEO has referred to moderation in transaction volumes in some areas. Can you comment which areas are affected, and whether moderation is also impacting sales of new housing stock?
Well, I think in some areas, what drives the slower market in some areas is basically, at the end, the affordability ratio, what clients can pay. We don't see that in key markets like Madrid, Valencia, Barcelona, or even Seville. We do see some slowdown in markets where affordability ratio reaches Something like 40%, something like that. Which markets is that? It may be, for example, in Terrassa, even though I wouldn't say that. As you know, Terrassa is a suburban area of Barcelona. The reality is that we don't see that happening in all our projects in Terrassa. It's only in one out of four. I wouldn't generalize completely that statement.
I think in general, the market, not just new housing stock, but also second-hand homes, are seeing that slowdown that you see in the press, which by the way, is a slowdown of 3% or something like that, which is not a significant figure. That is happening in areas where the affordability ratio is reaching figures that is already hard for clients to actually pay for the units. In those areas, what we will see, I think, is that the prices will not increase anymore or will increase at a lower pace. I don't think that volumes will or should decrease because the actual demand is there.
Okay. We have another question from an investor. This is about a technical accounting thing about any relevant changes in financial reporting as a result of IFRS 18 in the results of next year.
Well, we'll have to adjust the structure of our profit and loss account for the new regulation, and we'll adapt our financial statements according to the law next year. We are analyzing how we're going to change the structure, but with no changes in our internal procedures and our reporting.
Okay. Another question from an investor is, can you give us more details about the number of construction starts in the year? What is your expectation for the end of the year? I think you have actually make a point earlier.
Yeah, I did.
The question is coming from there.
Okay. Yeah. I think I mentioned it. The figure. Well, basically for the year, as I mentioned, in the key operational data, we're planning to start around 1,800 units, which is in line with the deliveries of last year or this year. Some of the units have slipped. Some of the start have slipped to the second part of the year. That's why the figure in the first half may seem a little weaker. The reason for this is related to the obtaining of the licenses. The reality is that, almost in all the municipalities where we are at, it's taking us a little bit longer, one month or two months longer than last year or previous years in obtaining the license, which is sad, but it's a reality.
They are coming in the second half. Therefore, we plan to start, as I said, around 1,800 or a little bit more units this year in line with our run rate. This is not related at all to pre-sales because in these projects, we have pre-sales levels above of what is required to get financing for the projects.
Okay. We do not have any more further questions from either webcast platform or the conference call. This concludes Metrovacesa's first semester 2026 results presentation. Should you have any follow-up questions, the investor relations team will be pleased to assist you. We thank you very much for joining us today, and we look forward to speaking with you again in the future. Goodbye.