Good morning, and thank you for holding. Welcome to Even's earnings call concerning the results of the fourth quarter of 2025. I would like to point out that for those who need simultaneous translation, the tool is available on the platform. To use it, you have to click on the button Interpretation, the globe icon at the bottom of the screen, and choose your preferred language, Portuguese or English. For those who will listen to this teleconference in English, there is an option to mute the original audio in Portuguese by clicking on the Mute Original Audio button. We would like to inform you that this event is being recorded and will be made available on the company's investor relations website at ri.even.com.br where the complete material concerning the earnings call will be available.
It is also possible to download this presentation by way of the chat icon in both Portuguese and English. During the company's presentation, all participants will have their microphones on mute. Following that, we will begin the Q and A session. To ask questions, click on the Q&A or Raise Hand icons at the bottom of your screen, and type in your question to join the line. When you are called, a request to activate your microphone will show on the screen, and then you must accept it to ask your question. We would like to advise you to ask all your questions at once. We would like to clarify that any statements that might be made during this teleconference regarding Even's business prospects, as well as its operating financial projections and goals, are based on the beliefs and assumptions held by the company's management and on information currently available.
Forward-looking considerations are not a guarantee of performance and involve risk, uncertainties, and assumptions since they refer to future events, and therefore depend on circumstances that may or may not happen. Investors should understand that general economic conditions, industry conditions, and other operating factors may affect Even's future outcomes and may lead to results that materially differ from those expressed in these future considerations. Here with us today are the chief executives of the company, Mr. Marcelo Dzik, CFO, and Mr. Márcio Moraes, CEO. I will now give the floor to Mr. Marcelo Dzik.
Good morning to you all. It is with great satisfaction that we bring you Even's results for the fourth quarter of 2025. Let us begin with the main indicators of the year.
We launched in 2025 BRL 2.5 billion, Even's share, a record volume of launches with our participation, which was 35% higher than the volume achieved in 2024. In the year, net sales totaled BRL 2 billion, 46% higher than the volume of 2024, contributing to net revenue of BRL 1.9 billion recognized in 2025. In 2025, Even's adjusted gross margin increased by 1.3 percentage points when compared with 2024, closing the year at 32.2% and reflecting the margin increase trend observed in previous quarters. In the fourth quarter, adjusted gross margin was 38.6%. Concerning the results yet to be recognized, we closed 2025 with BRL 1.9 billion in revenue, 32% higher than in 2024. Our backlog margin was 37.8% by the end of the period, which was 8.5% higher than in the year-over-year comparison.
We reported BRL 45 million in net income in the quarter, which when added to the comprehensive net income in the first nine months of the year, amounted to BRL 265 million, which translates into an ROE of 14.4%, which is 2.6% higher than the ROE of 2024. In the next slide, we show you the history of net income for São Paulo's operations in the last 11 quarters. We can see the consistency in profit generation quarter over quarter and the increase in profitability, boosted mainly by the gradual recovery of margins as well as by gains in operating efficiency and capital allocation. In the next slide, we break down the launches of the year, which amounted to BRL 2.5 billion, Even's share. In this quarter, we launched Plenitude Melo Alves project in partnership with RFM.
It is located in Jardins neighborhood with a PSV considering Even's share of BRL 351 million. In the next slides, we show you two other launches in the quarter, Go Madalena and Hub Perdizes. Now let us look at sales performance. The volume of net sales in the quarter was BRL 523 million with a consolidated SOS of 13%. Concerning cancellations, we closed the quarter with BRL 36 million, which is a lower level than in previous quarters. It's worth noting that we still maintain a very healthy receivables portfolio, increasingly more concentrated in high-end products. Moving on to the next slide. We delivered in the quarter the Hub Perdizes project with BRL 85 million of PSV and 161 units. In 2025, we delivered 1,760 units, which amount to BRL 1.2 billion, and for the next 12 months, we estimate a delivery volume of BRL 1.7 billion.
We ended the year with BRL 3.5 billion in inventory, mostly in the high-end and luxury segments, with well-located and highly liquid projects. The highlight goes to our finished inventory, which represents only 9.8% of the total volume. Out of the inventory under construction, 62% are scheduled to be delivered from 2029 on. Out of the projects to be delivered in 2026, 79% had already been sold by the end of 2025, as can be seen in the graph on the bottom right corner of this slide, alongside the breakdown of percentage of sales by year of delivery. We purchased two lots in this quarter with a PSV of BRL 615 million considering Even's share.
Our land bank has a total PSV of BRL 4.3 billion and is located mainly in prime neighborhoods in the south and west sides of São Paulo City and is concentrated in high-end and luxury segments. In the next slide, we show you our solid capital structure. We ended the year with a robust cash position of BRL 977 million. Net debt amounted to BRL 514 million, which represents 23% of the company's shareholders' equity. It is important to note that in this quarter, BRL 350 million were raised via mortgage-backed securities distributed to the market at a cost of 101.5% of the CDI in a seven-year maturity. In this quarter, operating cash burn was BRL 64 million. However, in 2025, we generated BRL 76 million in operating cash. I would like now to give the floor to Even's CEO, Márcio Moraes.
Good morning, everyone.
I'd like to begin by thanking you all, investors, analysts, and everyone else present for attending our earnings call concerning the fourth quarter of 2025. We ended 2025 with significant operating financial results. In operating terms, we reached a record volume of launches, BRL 2.5 billion, Even share. Our sales volume was relevant at BRL 2 billion, surpassing 2024 figures by 46%. The highlight goes to São Paulo Bay project, a BRL 1.5 billion project that was launched in the third quarter and whose sales have already exceeded 60%. In financial terms, we delivered in 2025 an increase in margins, profit, and ROE while generating cash and paying out dividends. In 2026, the macroeconomic environment remains challenging. Domestically, we can still see interest rates remaining high, and internationally, conflicts and inflationary pressures are still present.
We are paying close attention to market movements, and we are focusing on sales and deciding at each launch opportunity. We rely on robust cash and operating structures, which are ready to let us take advantage of future business opportunities. For the next cycle, we have built a pipeline with land located in highly desired places such as Itaim, Jardins, Pinheiros, and Moema, with luxury projects that offer unique architecture and exclusive items. In 2026, we announced Even's new brand position with the goal of materializing to our audience our already highly awarded and recognized operation in the high-end and luxury segments. The new identity was developed to communicate sophistication, timelessness, meticulous attention to details.
In these past years, Even has directed its operations toward projects that have meaning and have been uniquely conceived in a way that can reflect our customer's personal lifestyles, such as Fasano Itaim and Faena São Paulo. We will continue to focus on high added value projects in São Paulo City, always with a keen eye to sales and market dynamics in order to continue on our path of delivering ever-improving results. Once again, I thank you all. We are open now for questions.
We will now begin our Q and A session. Remember that to ask questions, you must click on the Q&A or Raise Hand icons at the bottom of your screen and type in your question to join the line. When you are called, a request to activate your microphone will show on the screen, and then you must accept it to ask your question.
We would like to advise you to ask all your questions at once. Let us now proceed with our first question from XP. We will now open your audio so you can ask your question.
I would like to understand how you see the dynamics of this more difficult market. We see high interest rates for long. I would like to understand how you see the temperature of sales, and at the end, in this more recent end. I'd like to see your speed of sales of inventory overall. If it has fallen a little, how you see this, and if somehow this could make the company revisit its size in terms of launches. I think these are the questions I'd like to understand.
Hello, Igor. Thank you for your question. As you know, our position here in the middle, high, and luxury segments, we have a very seasonal movement.
This is not a very busy month, February, neither. March is what we call the beginning of the operation. As what we have been saying, we are at levels in terms of basic senses and sales stands and sales are very close to what we saw in the second quarter of last year. In spite of some news, the generation of inventory in São Paulo, we haven't seen any change in levels, nor a decrease in the appetite of our customers for new product. The interest rate remains at a higher level in a very long cycle. What we're going to do when we talk about planning volume, as we always do, is to adjust the launches as the economy unfolds.
We do an annual plan, but if we see a very low SOS for any reason or a change in the scenarios in Brazil or a very messy second half because of the elections, we will revise this. But for now, our planning is maintained.
Let me just ask a follow-up question. In terms of speed of sales and margins, how you see this relationship? In terms of priority, where is the company at?
Our position in the high end, this is not a position in which we see high sale SOS. Our projects have been showing a good SOS, but as we highlight in the inventory presentation, we have a very long cycle. We see a 9.8%, and we have seen this scenario in these past quarters, and a good portion of this inventory, more than 60% of it, will be ready beyond 2029.
Our focus, because of our financing and capital structure, our access to credit in this dichotomy of SOS and value and margin, we have been focusing on value, even though we have been good speed of sales, and we are paying attention to our finishing inventory.
Thank you.
Our next question comes from Herman Lee, Bradesco BBI. Herman, you may now proceed.
Good morning. Thank you for taking my question. I have just one question here concerning gross margin that came at a very strong level. Even with the sales of inventory at higher levels, I would like to understand what the drivers are of this higher margin, if it's a mix, more controlled costs, if you expect this to be a recurring trend.
Hello, Herman. Dzik here. Thank you for your question.
We have been talking a lot about gross margin, and we have been seeing an increasing trend, if you see these past few years, and there are several reasons for that. We have changed the company's position in terms of projects. We have had a tighter control in terms of costs and some changes we made in the 2022 cycle in the purchase of land. All these factors, when added, contribute to a positive effect on the margin, and we have seen this increase in margin. From 2024 to 2025, we gained margin. We had another step that we overcame, and we can see now looking forward, our backlog margin, we highlighted this in our presentation, is at a much higher level as we did last year. And our adjusted inventory margin nowadays is also at this level.
When we talk about adjusted margin today, we see a very clear trend for the future. Both inventory and backlog margins, we see at this level of 35%.
Thank you.
Our next question comes from Gustavo Fabris, BTG Pactual. Gustavo, you may proceed.
Hello, good morning. I have two questions. The first is, if you could give me some more details of your delivery side looking to the next two years. You have shown how much has already been sold during the presentation, but if you could tell me more or less what we could expect in terms of cash generation due to these deliveries in the next two years. Especially for us to understand the dynamic of cash generation. I would like to link this question to cash generation.
You have entered the year a little more leveraged, so if you are feeling comfortable, if this level of leverage is okay for you, or if you expect some more indebtedness from the company. What kind of leverage you acquired to buy this land bank at the end of the year?
Hello, Gustavo. Dzik here. Let me see if I can answer your question. Concerning deliveries in our slide in the next 12 months, we see BRL 1.7 billion. In the year after that, we are going to have a reduction at around BRL 1 billion. When we talk about lock total value in portfolio, when we talk about our conversations, we have a very resilient position in our portfolio. It is a very low level of cancellation. Because we are positioned in the high end, the situation is different from what we had three, four years ago.
Nowadays, we have 60% of our receivables happening before the delivery of the project. This means an LTV in the portfolio of around 40%. Of course, we have some differences from product to product. When we talk about cash burn, our planning for this year assumes a favorable environment for our launches and land acquisition. We will have some burn, some cash consumption. But in terms of launches and business opportunities we will have. When we talk about our leverage planning, we believe that a healthy level for the company, obviously, looking forward, what we are going to have in terms of quality of this debt is at a level of around 25%, 30%. We paid out dividends in the fourth quarter close to this level. But this is what we see as a recurring level. Of course, accepting changes from quarter to quarter, cycle to cycle.
Our next question comes from Luis Wadt from Santander. You may proceed.
Good morning. I have two questions. The first one is a follow-up question to the previous one. When we see the formation of inventory in São Paulo, we can note that this formation happened more in terms of units of very high-end luxury segment. I would like to understand how you see competition for 2026, if you see a deceleration in this competition in terms of launches for these kind of products in this segment. If you will start operating more alone in this segment. The second question refers to São Paulo Bay. I would like to understand, the evolution of sales is very high at 60%. I imagine this is much higher than the feasibility studies you did.
I would like to understand how you see in terms of pricing for this product, if you are thinking about increasing price to see if you put it even higher than the feasibility curve, if you gain some margin in this project. Anyway, how you see this project in particular?
Márcio here. I'm going to answer this question. Concerning the increase in inventory in the luxury, in the high-end, it happened, but it's more a market dynamic because in the previous cycle, this was very harmed by certain legislation that we were not able to meet in the previous cycle because of the zoning planning of São Paulo. I think this balance that happened now between units in the high-end is that they helped us build this inventory. We're talking about 600 units and now a market of 10,000 families.
It's an inventory that grew, but it's not an inventory that will not be absorbed. It is still being absorbed. The interest rates, on the one hand, harms the middle income, but on the other hand, it helps the high income. We see that some companies that were operating in the higher upper income now have been focusing on Minha Casa, Minha Vida affordable segment, which we are not into yet. This space will become a little less competitive for us, and we are following on that. When the interest rate starts its downward trend, we'll see our land bank, because we already have products in this inventory for the middle income. We are just waiting for the best moment to launch it. Concerning São Paulo Bay project, it was a sales success. Two quarters after that, we are at 60%.
It will show in the future very good results for us. The pricing we have been updating. Every cycle we have been updating and increasing this price. The price has already increased by 15%. This will show in future margins. We have had good success. Dzik, if you want to complement.
Okay. Thank you.
I would like to remind you that to ask questions, you must click on the Q&A icon or Raise Hand icon at the bottom of your screen and type in your name to join the line. The Q and A session is now closed. We would like now to give the floor back to the company for their final remarks.
I would like to thank you all for attending this call. We will see you at the next one. Thank you.
Even's earnings call concerning the results of the fourth quarter of 2025 is now concluded.
The investor relations department is at your disposal to answer any further questions you may have. Thank you all to the attendees, and we wish you a nice day.