Morning, everybody. Welcome to the earnings release of the 2Q 2025 of Direcional Engenharia. I am André Damião from the IR team of Direcional. I am here with Ricardo Gontijo, CEO of the company, and Paulo Sousa, CFO and Investor Relations. Now we are going to begin, show you the main operational and financial highlights of the quarter, and then we will open for questions and answers. If you are an analyst or an investor and want to pose a question, please use the raise your hand tool in Zoom so we can moderate things according to the order of the questions. As soon as your question is answered, you mute, you click and lower your hand. Also, we have the YouTube channel. The link is in our IR site, and also you have the link to download the material we are going to show you here.
We are recording this event, so eventually we can have it in our IR site in our results center. To begin the presentation, I would like to give the floor to Ricardo for initial comments.
Good morning, everybody. So here we are again to talk about the results of our second quarter 2025, and I would like to thank you for your participation here. We will show you the main highlights, and afterwards we are going to answer all your questions and answers. André, let us begin with page three, the main highlights. I would like to stress that we have been delivering a quarter with very resilient and consistent numbers, a gradual improvement quarter after quarter, reinforcing what we have always tried to share with the market. So these are very positive results in our vision.
I would like to highlight some points that I believe are very relevant before we go on to the other items of the presentation. When we compare the second quarter 2025 with the second quarter last year, 2024, we have growing launches, 40% net revenue, 26% growth, gross profit, 39% growth, and net operating profit. Specifically when we exclude the minority interest line, which had a relevant impact of the sale of a share of 9.98% of Riva. So our minority interest has a slight increase, but we see an operating net profit growing 36% year-over-year. So these are very robust numbers, and we can see in the highlight here is the profit going over the revenue, which for us is very positive.
Here it is important to stress all of these items: launches, revenue, profit were recorded here in our history of more than 40 years. I would like to highlight the gross margins, the record gross margin. We delivered the gross margin adjusted by interest rate with regard to interest production of 41.7%. In the last year, we delivered a growth of more than 4 percentage points in the gross margin. This is very relevant. Another very expressive point here this quarter that I would like to highlight is the growth of our future revenue, our deferred revenue, and the total of this deferred revenue. It went over BRL 3 billion, BRL 3.3 billion, and the deferred revenue margin; the backlog margin grew seven points, reached 44.9%. This KPI is very important. It went from 44.1 points in the first quarter to 44.9.
The relevance of this KPI is basically because it shows us very clearly that the new sales in the company have been done with very strong margins, very positive margins, which somehow gives us comfort when we know that the gross margin reported in our statements of accounts will remain very solid in the following quarters. Because after all, today we have our backlog margin more than threefold the revenue we recognized in the second quarter in our statements of accounts. A little more than BRL 1 billion in a backlog margin more than BRL 3 billion . So we have our future revenue for more than three quarters here with operating revenue that we see with record margins.
When we look at a slightly greater interval here in the chart to the right, it is important to stress the greatest level of net operating net margin in the company in the last 10 years, more than 10 years. Today we reached this quarter to 19.5%. When we analyze the last 12 months closed now June 25, our operating net margin was 19.5%. This level is very relevant, very important. We have been able to have in this process of growth that this company has gone through, we have been able to see important benefits in terms of synergy and gains in scale.
When growth occurs in a way that benefits us with this greater scale, this greater negotiation capacity with suppliers, and gives us operational leverage where we see sales and revenue going above the expenses, giving us margin increment, this growth is happening in a solid way. It makes sense, and this is what we have been able to deliver in the last years. To add to this, and to conclude these operational highlights, when we annualize the profit of the second semester, we had the greatest level of our ROE in the history of the company, 33.5%, growing in a very recurring way. We continue seeing very positive perspectives for our operations from here on.
When we look at the operating net profit in the chart to the right, in the last three years, we multiplied this net profit more than four times, which is very positive in our view. Also, lastly, I would like to highlight, we had a payment of BRL 347 million in dividends now in July, which basically means a payout of 100% over the net profit we had in the first half of this year. So we have somehow been one of the main payers of dividends here in the Brazilian stock exchange when we analyze the payout and the yield. In our way of working, always trying to return capital to our shareholders, this is what we want to continue doing when we analyze the perspectives that we have for the future here in our company.
Well, having gone through this initial part, now I would like to go to page five, where we address the launches and operational data in the company this second quarter. We had an increment of launches. Once again, we composed our inventory that had been dropping since the beginning of 2024. We had been selling more than launching. Our inventory level was dropping, which is very positive in a moment where the capital is very expensive. In the second quarter, once again, we were able to have a number of launches over the number of sales, more than BRL 1 billion. When we look at the first quarter as a whole, the first semester, we reached BRL 2 billion in launches, a 24% growth when compared to the first semester of 2024. Riva represented 38%, and Direcional 62%.
Once again, with a broader analysis here that is important so that you can see what we've done in the last four years, launches grew more than 3.6 times. They went from BRL 1. 700 billion and reached almost BRL 6 billion in the last 12 months, closed now in June. The next stage, page number six, in terms of net sales, this was a very positive quarter in terms of sales. We had a total of almost BRL 1.680 billion in net sales this second quarter. It was an almost 4% growth in relation to the second quarter last year. When we analyze the first semester 2025, we were more than BRL 3 billion, and Riva was almost 39% of this total. Direcional, a little more than 61%.
Once again, in the last four and a half years, our sales grew almost fourfold, 3.8 times, going from BRL 1. 680 billion , and in the last 12 months, reaching BRL 6.3 billion. In page number seven, with regard to our net sales speed this second quarter, we presented a record net sales speed. It was over 26%. It reached 26.4%. Also, we've seen in this moment costs that are very well controlled, and we haven't had a lot of impact in increase of costs in this moment. But we stress this: the capital is very expensive. Vis-a-vis this context, our priority continues being continuing growing the speed of sales so that we can deliver less capital in our operation and have less demand for working capital during this moment of growth of which we are going through.
Net sales speed continues being a priority so that we can continue delivering this operational growth, a little demand for capital, and a return via dividends of this surplus capital to our shareholders. Having gone through these points, now I would like to give the floor to Paulo so that he can show us the main financial highlights of our operations, and then I will be at your disposal afterwards, after Paulo, so that we can then have our Q&A session. Thank you very much, everybody.
Thank you, Ricardo. Good morning, everybody. Now I will show you the financial highlights. Slide number nine to the left, we had the net revenue, and the highlight is a growth of 19%. It went more than BRL 1 billion in revenue for the quarter. I think that the main point here are the works that are accelerating. Generally, I'm sorry.
Yes, your sound is very low. Please speak louder.
So hang on a second. Yes, I will speak louder. Is that better? Okay.
Yes. Yes. It's better.
Perfect. I will go back here beginning with the net revenue. Net revenue in the quarter grew 19%. The main reason to stress here was the acceleration of the works. We began with a backlog margin, which was very high, and it's important to stress. We never begin works in the rainy season. The works launch began last year, and now they begin to speed up. Now we will continue accelerating the works, and we still see revenue growth in higher levels. With this, we exceeded BRL 1 billion in the history of our story, and we accumulated in the first quarter almost BRL 2 billion in revenue, BRL 1.959 billion.
To the right here, this red bar, we can see the revenue of the SPEs where we have partners and that we don't consolidate in the results. This shows the efforts, right? It shows this adds to the operational information. In the quarter, we reached BRL 2.556 million in revenue. We analyzed this. We have exceeded BRL 5 million in deferred revenue. We are BRL 6.3 billion. Here we still have BRL 5.1 billion in revenue, which shows us that we've got growth. We have growth in sales with already a contracted sales growth. The idea is to continue selling and build and start with the works. Here to stress what Ricardo said, we closed the quarter with a gross margin record, 41.7%. We want another BRL 20 billion with regard to the previous semester.
One of the main drivers here is a strong demand and efficiency in cost management. We can see we've gained efficiencies here with regard to inflation in the last quarters, specifically considering our construction method and less exposures here, which has really led is one of the moves that leads to inflation here. This is one of the drivers here. In the semester, we grew BRL 400 billion in our gross margin when compared to the semester last year, the first quarter. To the right, here we have the history of our revenue inventory. Deferred revenue. These are units that have already been sold but haven't been built yet. There are works to be built so that we can have this revenue and the revenue in our sector, just to remind you, it is received after the works are finished.
Here, when we look at our deferred revenue, it grew almost BRL 3.4 billion. This growth in the deferred revenue, since it's inventory, the margin of new projects and of new sales is well over the margin of the works we have been building the old sales. Perhaps here we can see that the margin of our inventory is high because the backlog margin has grown and sales done here have margins above the previous margins. I think this backlog margin plus the margin of new sales more than the old ones gives us the comfort that our growth margin continues at very high levels when we look at the next works, as we receive the results.
On slide number 11, to talk about expenses, here to the level you have the G&A expenses, another quarter with important dilutions are G&A. It went from 4.8% of the total revenue. The one I showed you two slides before, including the minority interest, it went to 4.3%. In terms of the semester, it went from 4.9% last year to 4.5%, comparing the two semesters. This is where it shows you just how careful we look at our G&A expenses. We have to dilute expenses here. We never ever lose focus here. To the right, you have the selling expenses. There was no dilution. Sales grew a little more than the revenue. The reason, going back to the slide Ricardo presented, a growth in launches. It grew 24%. When we grow launches, we increase selling expenses effort. We try to sell the product, right?
There are anticipated expenses here. Here we're spending the 2 Q, anticipating the launches of the 3 Q. The main reason is this. Also, it's important to highlight, last year, we began the year selling a lot of inventory. We launched less last year and sold more than the inventory. The main change here that impacted things was to launch more in this first quarter than the first quarter last year. We have to continue working to dilute these expenses. There's a huge variable component, but there is a fixed part that we have to work with growth, reducing this percentage with regard to the revenue. Next slide. Now to talk to you about the net income. Here to the left, we have the blue bars, which is our net profit reported, which is the operational one.
The operating one is a non-recurrent effect, right? In the quarter, we reached a record of BRL 104 billion, 17.2%, growing 36% compared to the previous year. Here we continue with our trend, increasing net profit. In terms of the semester, BRL 342 and a net margin of 17.4%. The red bar, we included the effect of minority interest in our results. The revenue of equity income, and also the expenses of the minority interest. The results of the revenue we consolidate. This is the net impact. What we pay the minority group and what we receive from non-consolidated SPEs. We try to show you the growth here that went from the 1 Q 2025 to the 1 Q 2025. We increased Hibu's participation here, and we already have a new partner there in Hibu that has part of this result and is a minority interest.
We are sure that it was a very good operation, and we showed you here to show this red line. This is a net margin adjusted because of this. When we considered this, our net margin became flat quarter after quarter, with an important growth of more than 200 basis points, compared to the previous years, going from 19.3% - 16.9%. We included this to show you that there wasn't a drop in net margin in the operational view. Our net margin was stable because of this. To the right here, I will draw your attention to the ROE curve growing quarter after quarter. Our ROE reached the greatest level in our history, 33.5%, the first quarter, 2024, going from 24%, right? The first quarter of 2022. Here showing that we grow profit without increasing working capital and paying dividends to our shareholders. Lastly, capital structure.
This is very important. I always say our budget starts from here. This is where we decide upon size, dividends. We close one more quarter with net cash, 5.6% net debt over the BL. We closed the quarter with the central chart, with a record in cash, more than BRL 2 billion. In the last chart here, it is important to show you our very elongated schedule of our debts. Very little debt. Every one of these bars, every 12 months, when we compare to the cash we have, I think the last bullet point we have in this slide here, since this was a subsequent event during July, we captured BRL 600 million in a very elongated debt with payment in 10 to 15 years. So this schedule we see here in the upper right chart is the closing of the second quarter.
But already in the beginning of the 3 Q, we elongated even more this debt, including another BRL 600 million in this window, parting from 17 months. It improved and elongating even more our debt so that we have even more comfort to operate in these next quarters. Well, I think I have gone over the main highlights. Now I will give the floor back to André, who will moderate our Q&A.
Thank you, Paulo, Ricardo. We will begin with our questions and answer. Raise your hand to hear. Our first question, Fanny, Santander. Fanny, you have the floor.
Good morning, André, Ricardo, Paulo. Thank you for your question. Well, I have two questions. The first one, when we look at the gross margin trend in Direcional, it is still very clear to see how you have been recovering margin. The expansion of the backlog margin shows attention. We know that the long-term margin is 36%, but I want to understand how we can expect a margin when we look at 18 months. Because I imagine this year you had a costing creep in 2022 because of the war. Now the margin of the new sales is very strong. So I know it is difficult to give us a guidance with regard to the margins, but what do you think is feasible to expect here in the next months in terms of profitability? This would be my first question.
The second question, I also want to know if you could give us a color with regards to provisioning levels and also with regards to the PDD you see in terms of deferred of the portfolio. These are my questions. Thank you very much.
Paulo, I'll tell you with regards to the first question, then you answer the second with regards to provisions. Fanny, thank you very much for your questions. We had a gross margin which grew 0.2%, reported going through the bank statements, adjustment by rates, income rates, because we're trying to have the greatest amount of financing to production. In the line of here, from financing to production, the interest has an impact of almost 3 percentage points between the adjusted gross margin and the reported. But it has made sense to operate considering this kind of financing at this moment because of the fact that the corporate debt stock is at levels above financing to production. Also, we saw the backlog margin, the deferred revenue going.
The rev went up to speed above the reported based on an inventory of future revenue, which is over 3 billion BRL. So you have this increment here that shows us very clearly that we have commercialized our products. Also, we've been able to execute our works with very strong efficiency levels, and we have been able to price up our growth. This growth of 0.8% of the backlog margin is very clear that future gross margin should remain in very solid levels or superior to what we have always tried to show to the market. This should be the recurring gross margin. It shouldn't be 38%, almost 39%, which should be more than— although we are delivering margins above more than 33% for some years.
When we analyze return over capital, this 35%, 36% margin, specifically when we buy, this would give us a return over the capital, and it's very important for our launches. Because 35% and 36% meets the needs of our return hurdle, it is important to show to the market that this should converge to this level. When we analyze the ref and the reported, I think it's very clear that we should operate with gross margin levels closer to what we have disclosed in the last two quarters. For some period still, specifically because we have in our future revenues three quarters at least of reported revenue in the statements of our accounts. This gives us comfort, and we know that margins will remain solid for a reasonable time. Somehow, this is what I would have to say at this moment.
We continue seeing very controlled costs. We have been very conservative in our budgets, in our projects. We have operated with levels of cost increment below what we provision with future inflation perspective. Specifically because in our construction process, representativeness of labor as a proportion of the work's cost is lower. So it is specifically lower than the INCC. Our construction process, where the weight of the labor is lower than the index, this increments the productivity of our professionals. When inflation comes from labor, we feel inflation lower than the index. Although we still are in a very volatile world and Brazil is very volatile, we are comfortable with the margin levels we have been able to deliver, and this margin is very clear. This is what we have the greatest visibility in this moment.
Paulo, I would like to give you the floor with regards to the provisions, which was Fanny's second question.
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[Non-English content] follow-up Ricardo. What you have in terms of savings here, accumulated savings here in terms of works. Could you share this with us?
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Yes, exactly, Paulo.
To answer the second part of your question, Pedro, generally, in Direcional, we have a second half which is stronger. This year should be the same as long as our products remain relevant, as has always been. We try to launch a lot in the 1 Q and the 4 Q; specifically, in October and November, we have the perspective to continue having more products in a consistent way, right? We have an approval expectation which is higher in the second half, and depending on the demand, we will continue launching. The second half tends to be stronger than the first, and it's recurrent here in Direcional operations.
Affordability: we see it very positive in the segment, specifically because we have more than 70% of our products are eligible to Minha Casa, Minha Vida program, eligible to the funding from the FGTS, specifically at this level four, which fits the products of Riva. We see a strong affordability and demand and job generation. If we remain with this scenario, certainly we will have a very positive launches pace in the second part of this year. We are optimistic with the operation and demand. We feel very positive with regards to costs. If we remain with this higher net sales speed level, the perspective of cash generation is positive.
I think that if this scenario remains so, in spite of the macro scenario being more difficult to read, when we look at the operation itself, we are very enthusiastic with the perspectives for the 2 Q.
Thank you very much, Ricardo, Paulo.
Thank you for your question, Pedro. Next question, André Mazini, Citi. André, you have the floor.
Good morning, Ricardo, Paulo. André, thank you for the call. Another two questions. The first with the direct table year-after-year. This increase has to do with Riva's operations, which is under the program because the SPU rate varied, the economic increased this year. With level four, this revenue should stabilize or even drop. Then the second one with Riva and the sale here that you concluded this year, we have until October for the buyer to decide whether it will go to 15%. What would be the trigger to get to 15%? Is it management, funding, fundraising on their part, or is there more necessary for them to get to 15%?
Ricardo, I will begin with the first part of the question. Mazini, thank you very much for your question. With regards to direct revenue, year after year, we saw a reduction of the origination of this direct portfolio. The point is there was a reduction of prepayment. This portfolio has a huge volume for the bank. As you said, the increase in interest rates kind of discourages the customer here, and this allows this portfolio to increase. Also, this is a portfolio. It works last 10 years. Since the company is growing a lot, this portfolio still hasn't stabilized. It will continue growing for some time. In our vision, this is a normal, natural movement.
It is an asset that gave us protection against inflation. You can't only operate this transfer to the plant. It's our main sales policy. We encourage this, but also we like to have exposure with this asset so that we can have a correction of the accounts receivable and have a flow. In general, this is something that we do. I don't know if this became clear for you, Ricardo, if you would like to comment.
Just to add to this, with regards to sales direct table here, this has represented 20% of the total goods sold. If we consider Riva and Direcional, the total amount where we have this funding via direct table, and 20% is represented. This level hasn't grown, and we are not interested in having it grow, specifically in a moment where costs are controlled. We have tried to prioritize non-associative sale of sales.
However, this level, as Paulo said, 20% of sales occurring in a direct table model with judiciary alienation. The fact that we have this credit corrected by the INCC and IPCA + 12% with a longer duration than the execution of the works itself gives us a very relevant hedge when compared to an eventual inflation spike. But we always have to be prepared for this scenario, right? We're not seeing this at this moment. So it grows. Duration is very long, but it doesn't mean we're estimating more as a percentage of what we sell. When we consider future inflation, we have this direct table portfolio, which has an important proportion and gives us an extra hedge, specifically when we consider that this portfolio will be corrected to more 10 years.
This duration difference gives us this important hedge here when compared to an increase in inflation that might happen. This is part of our strategy and part of our conservative way of working. Your second question, Riva. Originally, in April, there was an expectation that we would have an acquisition of a stake of 7.5%, BRL 200 million. Riva has already exceeded this 7.5% in the first tranche, 9.8%. It exceeded the expectation. So instead of having a liquidation of BRL 200 million, it went over these BRL 200 million, and we have until October for them to exercise the remaining 5.8% with a payment of BRL 140 million more. This is up to them, whether they want, if it will be via fundraising or resources that they have. They will decide upon this. But we've seen Riva's operations performing really well, specifically with Level four.
We have to wait. The main message is that we have a capital structure that is deleveraged. In our opinion, this was done in a way of generating value for the Direcional shareholders. This is a capital that wouldn't have use in our current operations because of the low leverage we have in the company. Most possibly this will be a board decision, but it is capital return to our shareholder somehow. In our vision too, to have a partner with access to capital, with a cost that is lower than the return we intend to deliver to our shareholders, makes us much more complete. Our company becomes more versatile. From a strategic point of view, partnership with Riva is very relevant, and we want to have this partner as close to us as possible with a 15% stake in case it's their will.
This partnership with a manager, very qualified manager, where we've already had a long relationship with, gives us a strong versatility in a moment where capital is scarce and expensive. A partner such as them makes us more complete. From a financial point of view and strategic point of view, this is something that is very positive.
Clear. Thank you very much, Ricardo and Paulo.
Thank you, André, for your question. Gustavo Cambauva, BTG Pactual. You have the floor.
I would like to ask with regards to the growth. Ricardo mentioned the second quarter, but considering the future here, I remember that in one moment or the other, you had great square, specifically with Direcional Engenharia, with a longer delivery cycle, considering Direcional Engenharia, and then program yourself for more growth. I would like to understand how you see this issue today and what the company is thinking in terms of large volumes, number of units, and work sites concerning the midterm, 2026, 2027. If you could put into context where opportunities are here. Riva, Direcional. This would be good. Thank you.
Cambauva, thank you for your question. We have operated today in nine regions. Nine different. Rio, São Paulo, Belo Horizonte, + 6 other areas. Brasília, Manaus, Recife, Salvador, and also inland São Paulo, based in Campinas. For more than six years, we have not opened any new operations, and we have been able to see the results where we are gaining in market shares. In these areas, we have execution capacities and a DNA that has been diluted as we gain relevance and our brand gains more fame. We have been able to collect the results of this greater scale, always focused in the areas where we have operations and where we have greater volumes, better operations, the supply, better relationships with the supply of our projects. We continue working here.
Obviously, if we operate in these nine regionals, these nine areas, we could operate to volumes that are more than what we operate today. But today we are in a level of sales and revenue, which is the greatest in the country. As we grow step by step, we still check our capacity of creating, training new teams so that these teams can have that same level of productivity, not only technically speaking, but with the same values and principles. This makes the difference here. This is a growth that has happened in the point of view of launches and sales. It has been very important, but it has been stronger when we look at 2021 to 2024.
Also, we have noticed our execution in the current moment, performing in a way that is better than imagined, which gives us comfort. We work with very standardized processes where we have control of our work sites in a very relevant way.
This standardization and industrialization of the construction process allows us to operate in these areas with very similar and equivalent efficiency levels. We have had huge comfort here with this growth we are going through. It is important to stress that our priority continues being growth without extra demand for working capital. The capital has to be returned to the shareholders. Increment of ROE via increment of working capital, this is a priority. Net sales speed is a priority compared to growth. When we have gains of synergy here and growth occurs with gains of synergy, it is the priority. We have opportunities with these nine markets we work in, we operate in. This is the main message I would like to convey to you. You saw that in the first half of this year, operational terms, we did not have a very relevant growth.
The number of work sites where we were prepared to have under management in 2025. This remains any perspective of eventual growth and launches as a result of the entrance of Level four, which gives us a very relevant purchasing capacity in this band of BRL 350,000 - BRL 500,000. This will happen in the first semester. We will see results in 2026. We will have teams qualified and trained to take on these new operations. Level four gives us positive result, including thousands of family in the market we deal with. If we remain with this efficiency level, this level of control that we have been able to deliver, certainly we will see to this demand in the areas we already work in, where we already have land lots and qualified teams. This is not the priority in this moment in terms of growth. Riva, Direcional.
We see perspectives in the two segments. We have in the Direcional segment as performance that has been very strong in Minha Casa, Minha Vida - Cidades segment, specifically in these states where we have had subsidies coming from this federation unit that comes as an addition here to the subsidies of Minha Casa, Minha Vida. This has been strong in Brasília, Pernambuco, Amazonas have had very good performance here. Also, we notice in Level four, huge opportunity that has this Riva product, the kind of land lot and product that we have here to be approved. We have important opportunities here in the two segments. Also in general, when we are in one of these states where we have Minha Casa, Minha Vida, in effect, the ITBI has to be a bonus.
This is a demand and this reflects in this level of sales expenses we have had, which was 9.1% of our revenue in the second quarter 2025. You see, sales expenses grew in relation to what we had in the beginning of 2024. Part of this is the fact that we have ITBI and registered being paid by us as bonus in these areas where we have Minha Casa, Minha Vida - Cidades. This is another explanation for the sales increment, but we have opportunities in Direcional and Riva, and with a good performance in Level four, we can adjust our products so that our clients, when they have income that are below, they are eligible to these programs where they can have a very relevant purchasing capacity. You are seeing here, Riva and Direcional are very similar.
You see that there is demand and opportunity in both segments. Thank you very much.
Thank you, Cambauva, for your question. Ana Julia Zerkowski.
[Non-English content] We have a question with regards to your regional programs. An update on the different regions, how things are in Manaus and Ceará now. Were there cancellations in increase of the pró-soluto, and could this impact the increase of sales, considering that transfer to the broker would be more difficult? Second question, other expenses and operating revenues, specifically expenses. How can we think here, for example, should there be a growth with the growth of revenue or go back to a lower level? Any detail here would be great. Thank you very much.
The first part of your question, and then Paulo will answer the other one relative to other expenses. In the states where we have Minha Casa, Minha Vida - Cidades, it's important to stress São Paulo, that has had this for many years.
More recently in states, we're operating in Pernambuco, Brasília, Amazonas, and Ceará. We've seen very positive performance of these programs, clearly parting from having a program here. We have these family with much lower income, with a benefit created for families in these states, a huge benefit. We have sales to families that will have one minimum wage, supporting from BRL 1,800. Families that have this income can be able to buy, specifically when we consider the fact that these state assistance is around BRL 20,000. And in state of Amazonas, BRL 35,000. The program has been able to serve thousands of families here. We have had product eligible to Minha Casa, Minha Vida - Cidades. The transfer of credit approval process takes long because it depends on the state secretariats to validate this and confirm the family's eligibility to this state program.
You have a reduction of pró-soluto, you have gain in speed of sales, you have a reduction of cancellations. I think these are very positive programs, and I would say here the Pernambuco program has performed really well. Brasília has been performing well also. Amazonas state very well too, and Ceará perhaps has had more problems in this moment. It went well last year, but this year it is not as good. São Paulo is a continuity, hasn't changed operations in the last year, which was the period where state programs in the other states came into effect. These are intelligent programs that multiply the capacity of these states to offer housing for the population that have volumes below BRL 20,000. When you build a new house, it's BRL 200,000, right?
The state is increasing tenfold its capacity to offer these programs to lower-income families. Here we are very optimistic, and we've seen operational improvement that is important in these last months, considering what I showed you. Now, Paulo, with regards to other expenses and the expectations of what we can expect from here on.
Good morning, Julia. Thank you for your question. These other expenses, these are the main expenses that go there, are general provisions for credit. There are expenses with different companies. When we sell assets, it goes through these. Sales of receivables too also go through this. When we stop a project, for example, we notice that there's unfeasibility here. We have to also stop with these expenses incurred here. This is a series of other expenses.
However, when we look at the revenue, when we administer SPE with a partner, we have revenue coming from here too. Many things go through there. It's not something that can be managed every day. But there was a coincidence this quarter of more expenses than the revenue. Nothing too much, but we ended up having a volume above. There are history when we look at this line quarter after quarter. I think this is a coincidence. I don't think that this is recurrent. If I look at these in the last quarters, we can see these 40-something million that we saw that was positive. When we look at our budget and the feasibilities or the study of new projects, we need three and a half of the revenue to go through this line. This quarter is a little more, I believe in others, we will have less.
I think this is it. I don't see anything here, when I add up all of these lines here, I see nothing impacting things too much or too little. I don't know if it was clear for you.
Yes. Thank you very much.
Thank you, Ana. Next question, Juan Argento.
Thank you, André. I have two questions that I would like to ask. One with regards to level four. I want to understand how you see the effectiveness of sales in level four, how they evolved in the beginning of this process, and do you see a gain of traction here of level four in the company? If there is room where you would see an opportunity of changing the sales strategy in this segment, are there more opportunities for growth of operations in level four, and what to expect from here on? My second question has to do with dividends. Ricardo talked about perhaps the remaining sale of share in Riva could be a dividend trigger. But how do you see in terms of other triggers for the 2 Q receivables or sales of SPE might trigger new distribution in the second semester?
Also, I would like to understand if you consider study of dividends taxation. How do you see a potential increase of payout in this scenario? Limiting factors here for you.
I am going to consider now level four and then talk about your second question with regards to dividends. Level four considers our operations in a very relevant way, very positive for Riva operations. The projects that we have to be approved, the land lots that we have in the short-term pipeline, we can adjust the products so that most of them are eligible to level four. Of course, when we consider interest rate TR + 10 in a price amortization system versus withdraw amortization +12 TR, specifically with the amortization system of withdraw for price, the purchasing capacity gain of that customer with the same income gets to almost 25%. It is 25%.
Families that could not buy the product before can come buy them now. It is natural that we try to have products eligible to level four, having sales price and sales ticket. People, their families with less than 12,000 BRL are eligible for this funding, which increments the purchasing capacity of families. Level four is transformational for Riva's operation. It is very relevant. It has had huge relevance in our daily works here in terms of sales, and the perspective is very positive, specifically with the new launches directly addressing this adjustment. I think that level four is very positive. It has been happening during time, right? The customer goes to a store, chooses a product. It takes time to have credit approved. All of this takes time, but we are very positive here, as has been very good in these last weeks.
With regards to dividends, certainly we have returned capital in a very consistent, recurrent way to our shareholders. We ended the second quarter with a capital structure with leverage below the optimum point. Also we've had, with current levels of returns for the sales of receivables portfolio, which are backed up, and also positions in SPE with higher capital volumes disbursed in land lots, having demand for the return rate level. Certainly, we will continue maintaining this as recurring in our operations. Of course, this capital, or this cash, eventually extra cash that comes from the monetization of these assets, an important portion will go back to our shareholders. We believe that it is an important part of value generation in our business. Considering some other important information here.
I'm not saying exactly what we're going to do, because these are decisions that have to be decided upon by the board, right? It depends on definitions that we might have during the second semester. We closed this second quarter with BRL 700 million profit reserve. We had a profit of BRL 184 million. If we consider the 3 Q, most probably we're going to have a profit reserve over BRL 700 million, which gives us huge flexibility to anticipate or not dividends, depending on what's going to be decided upon by the board. We have low leverage. We emitted BRL 1 billion, and BRL 600 million was liquidated in July. We try to work with flexibility and possibilities array that is high to opt so that we can decide upon making adjustments when necessary.
What I want to make very clear is that there is an important profit reserve, low leverage, which allows us, in a way, to maximize return to the shareholder.
Great. Thank you.
Thank you, Juan, for your question. Rafael Rehder, Safra. You have the floor.
Can you hear me?
Yes.
Thank you. I would also like to touch upon level four, but I heard since this volume is lower and there are discussions in this government to increase the income band. Ricardo, have you heard about this? Could you tell us about this and also the impact of level four in the direct financing portfolio you have. If you imagine if most of these customers fit into level four, and if this could be an additional cash generation, right?
Rafael, the first part of your question, and Paulo will answer the second part with regards to the portability of a direct portfolio to level four and how this could impact our portfolio here. When we look at the budget of level four for 2025, we have 330 billion BRL, 15 coming from installed, 15 from market instruments like Caixa Econômica Federal. When we begin of the level four operations, the first two months, consumption days of these resources are inferior to the budget that we have for 2025.
We have seen management from the Ministry of Cities and Caixa also that has an important share in Minha Casa, Minha Vida, extremely efficient and competent. We have resources, available resources from FGTS, and press result in the previous years has been used in a perfect way, I would say. You don't have too much, not too little. They have tried to maximize service to population in terms of job generation and collection of taxes and offering products. They are to be applauded here.
Certainly, you have the government looking the pace of consumption of this budget so that available resources are used. If the pace of use of resources occur in a slower pace with regards to what you would have in terms of the budget for the year, we have to look at the adjustments, right? Then afterwards to see how this is applied by cash. But it's difficult to anticipate because it depends on the ministry decision, the ramp-up level of level four. I think what we can infer is that in case there is any kind of adjustments, I think certainly they will be positive in terms of increase of affordability, because in this beginning, the use of resources are occurring in a level that is lower than what you would have in a monthly budget.
I think there is no way of doing any kind of forecast, just this that I'm sharing with you. Paulo, tell us, please, about level four and eventual impact in our portfolio.
Rafael , level four, considers families that have income of 9,000 BRL - 12,000 BRL and products of 350,000 BRL - 500,000 BRL. When we look at our portfolio, since this product, it is not eligible to Minha Casa, Minha Vida, a family to buy the product would have to have a higher income. So it was more than 12,000 BRL up when considering the price of the product versus what was the credit available, more than between 9,000 BRL and 12,000 BRL. And when we look at our portfolio and trying to understand if the customer that bought the property between 350,000 BRL and 500,000 BRL, if he was or not eligible to Minha Casa, Minha Vida.
Here we have the good news for level four, and now we can sell this property for a customer that was not in our base. When I look at the portfolio, I don't see cash generation. Some, yes, but not relevant. We don't see things coming from here. But certainly we see possibilities, and we see this happening of having a substantial increment of the net sales fee because we have a new customer that didn't use to buy our product. And now we have this customer buying level three too, and they would buy in worse conditions, and now they're buying better conditions. No, we don't have a drastic change in our portfolio. And now looking into the future, we have a new customer where we can offer our product with the entrance of level four.
Yes, very clear. Thank you very much, Paulo. Ricardo.
Thank you, Rafael . Thank you for your question. Mariangela Castro, Itaú.
Thank you. Just one question here. In the last weeks, we have received a series of news with regards to new habitation program, housing programs, and specifically for 2026. I would like to know if you know any things with regards to this or have participated in discussions in this sense.
Mariangela, what we have heard a lot with regards to the search of new solutions for lack of resources we have seen in the SBPE segment. At the moment, there are many projects of which price of sale is over BRL 500,000 and the income of the buying family over BRL 12,000. The levels of interest rates in the market, savings accounts have been used, and you see a clear lack with regards to the cost of funding to be applied in this segment.
It is higher now because banks have to go after this liability via the emission of LCIs, where cost is much over the cost of savings. This segment, this is very important sector for the economy, a chain of huge supply of products, generation of jobs. An impact here is relevant for the economy of the country as a whole. There are discussions here in order to try to find a solution, even if temporary, for this reality that has certainly impacted the availability of resources for financing of this segment.
The information we have are not at all conclusive. These are discussions that are in the initial stages, and certainly until now, we do not have a clear and simple solution to be given. We have been waiting for definitions from the central bank and some ministries, but I do not think there is a solution, even though it is a consensus, right? At this moment to deal with this situation. Thank you.
Thank you very much, Ricardo.
Thank you, Mariangela, for your question. Next question comes from Jorel Guilloty, Goldman Sachs .
Good morning. Thank you for your questions. First, with regards to the ROE, which reached a very high level, 34%. I would like to see where you see this ROE can get to. The backlog, the deferred revenue is getting to record levels. I would like to know if this can grow, it can increase. Next to this, in this quarter, you also reached net cash level over the PL of 6%. If I remember well, you got the net debt over the PL of around 30%. I want to understand this net debt compared to the PL, and in how long can you reach this? Thank you.
Paulo, I will talk a bit, and then you can answer this. Jorel, it is difficult to trace any future perspective here for certain financial metrics. I will try to give you some data with regards to the past and then a little bit of our strategy and the way we've worked with so that you can eventually help with your first question with regards to the ROE. Clearly, you see that we've had sales that are above the revenue, which means once the works are carried out, we still have a growing revenue perspective. You see gross margin growing and the deferred revenue going over the gross. Also, we've been able to deliver a net margin increment because of the operating leverage of the company. Expenses grow at a level below the revenue and also the gross margin. You have these kind of things we've been seeing.
On the other hand, we have a capital structure that is de-leveraged. Also, we have returned capital to our shareholders in a recurring way. If you analyze the payout of the first semester, it was almost close to 100%. Our book has not grown. As a fruit of this way we have acquired the company, is that the ROE has grown because of the increment of working capital and also margin. We don't have to leverage the company, which would be the third possibility to increment ROE. We de-leveraged the company, although we saw as an optimum leverage level, almost 20% of the net debt PL ratio. Somehow this gives us a comfort to operate with this leverage level. Clearly, what we did in the past and allowed us to deliver ROE growth, this base, this structure remains.
We will do our best to continue generating value for our shareholders. Let's see the scenario on whether we're going to have success with the continuity of this that we had in the past, this journey with that.
I would just like to add to the leverage, as I said, and even presenting the capital structure slide, our budget parts from capital structure. Right? When we look at the history, the last two years, we paid almost BRL 2 billion in dividends. If we look at quarter after quarter, we de-leverage the company, generate cash all the way to get to the net cash close to zero. We pay dividends and have a leverage of almost 10%. Specifically in periods where we have less macroeconomic volatility, we get to 20%. We've done this in some periods, right? This is it, Jorel.
The main dividend here is cash generation because we want to work or we want to submit this to the board for discussion. We always work with a vision of having a less leveraged company, generating cash, deleverage, pay more dividends. This is what we have been doing in the last years. With regards to your goal in terms of net debt over the PL. Looking back in the operations that we have today and what we operate today, it's around 10% - 20%, which would be the comfort level. Many things have changed. We have been considering 20% for some time now, and it's important to stress that up to two years ago, an important part of our cash was blocked.
When we received cash from all the transfer of the financial institution, but between the signature of the contract, which was when we received and the release of the registration, this cash was blocked. Today, the blocked cash is almost zero. In general, I would say that we have a comfort to operate very close to this, right? Always considering this once our operations evolve.
Thank you very much.
Thank you, Jorel. Ricardo, Paulo, for your presentation here. We have no more questions here. I would like to allow the investors relation team for other issues in case. I would like to give the floor to Ricardo for final comments.
I would like to use the moment to thank you for your participation. We are trying to work as best as possible to continue with this journey. I'm very satisfied with the results that have been delivered. We would like to thank all our team for everything that they have done and also for us to be able to have this journey where we have a strong value for our shareholders. Thank you very much, everybody. Have a very good day.