Welcome to Even's earnings call concerning the results of the second 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's an option to mute the original audio in Portuguese by clicking on 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, ri.even.com.br, where the complete material concerning this earnings call will be available. It is also possible to download this presentation by way of the chat icon in both Portuguese and in English.
During the company's presentation, all participants will have their microphones on mute. Following that, we will begin the Q&A session. To ask questions, click on the Q&A icon at the bottom of your screen and type in your question to join the queue. 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 and 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. Marcio Moraes, CEO. I will now give the floor to Mr. Marcelo Dzik.
Good morning, everyone. It is with great satisfaction that we present Even's earnings for the second quarter of 2025. Let's start with the main indicators in the quarter.
We launched BRL 1 billion, and BRL 694 million of which is Even's share, distributed between Casa Madalena, an exclusive project located in Vila Madalena, and the Hotel Faena, which is the last phase of Faena São Paulo project. Our net sales totaled BRL 442 million Even share, contributing to the realized net revenue in the half year amounting to BRL 907 million. We reported a gross profit in the period of BRL 189 million with adjusted gross margin of 25.9%. Our gross margin was affected by the sale of Hotel Faena. This result, as expected, has a lower operating margin than the residential units of the same project. Since this is an atypical event, by disregarding the effects of the sale of the hotel, the adjusted gross margin rises to 29.6%, which is consistent with previous quarters.
Our EF and inventory margins remain at superior levels, reinforcing the trend of gross margin expansion for the coming quarters. We reported BRL 49 million of net income in the quarter, which when added to the comprehensive net income reported in the first quarter, amounted to BRL 130 million, which means an annualized ROE of 13.7%. The operating cash generation in the quarter was BRL 67 million for an accumulated BRL 234 million in the year and BRL 563 million in the last 12 months. Our capital structure remains solid with BRL 323 million in cash and a net debt of 9% of shareholder equity. In the next slide, we present the track record for net income of São Paulo's operation in the last 10 quarters.
You can see consistency in profit generation quarter-over-quarter and the increase in the levels of profitability, boosted mainly by the gradual recovery of margins and by gains in operating efficiency as well as in capital allocation. In the next slides, we break down the launches of the year, beginning with Casa Madalena, a high-end project with apartments of approximately 350 sq m located in Vila Madalena and a PSV of BRL 550 million Even share. We also launched and concluded the sale of the entirety of Hotel Faena São Paulo, a luxury hotel conceived to provide services and convenience to the complex, adding sophistication and value to the residential project launched last year. The project has a PSV of BRL 178 million, considering Even's share.
We are preparing special launches for the next quarter, such as São Paulo Bay, a project next to São Paulo Surf Club, and through RFM, the project Plenitude Melo Alves, located in Jardins. Considering Even's share, these projects amount to over BRL 1.5 billion of PSV. We are now showing our sales performance. The net sales in the quarter were BRL 442 million with a consolidated SoS of 13%. Concerning cancellations, we ended the quarter at BRL 52 million, which is the same level as in previous quarters, despite the significant increase in the volume of deliveries. It's worth noting that we continue to have a healthy receivable portfolio, which is increasingly concentrated on high-end projects. Moving on to the next slide, we delivered the projects Modu Butantã and Modo Pompéia, which account for a PSV of BRL 390 million and 870 units.
For the next 12 months, we estimate a volume of deliveries amounting to approximately BRL 1.5 billion. Here, you can see some of the photos that attest to the company's high quality of execution. At the end of the quarter, our inventory was BRL 2.9 billion, mostly comprised of projects in the high-end and luxury segments, extremely well-located and highly liquid. Our inventory is quite young, with only 12% of the total volume corresponding to finished units. Out of the inventory under construction, 77% will be delivered from 2027 on. The projects delivered this year were 77% sold as of June 30th, as we can see in the graph in the bottom right-hand corner of this slide. Of the projects to be delivered next year, 73% are already sold. Our land bank consists of 19 lots or phases for a total PSV of BRL 3.2 billion.
It is located mainly in prime neighborhoods in the south and west sides of São Paulo City and is concentrated in segments ranging from middle- income to luxury. In the next slide, as a relevant part of our strategy, we present our solid capital structure. We ended the quarter with an important cash position of BRL 923 million. Our net debt amounted to BRL 202 million, which represents 9% of the company's equity. This means a decrease of 2 percentage points when compared with the last quarter. in this quarter, we generated BRL 67 million in operating cash, BRL 230 million in the first half of the year and BRL 563 million in the last 12 months. I would like now to give the floor to Marcio Moraes, Even's CEO.
Good morning to you all.
I'd like to begin by thanking you, investors, analysts, and everyone else for attending Even's earnings call concerning the second quarter of 2025. We launched two projects in this quarter, and we are preparing special launches for the second half of the year, such as São Paulo Bay, which offers exclusive views and access to São Paulo Surf Club, and Plenitude Melo Alves, a 45-floor tower by way of RFM. It is a luxury project located in one of the most desired neighborhoods of São Paulo City. We had the first half year with consistent sales despite facing higher volatility on a monthly basis and in an unstable global economic scenario. Our inventory is at a very healthy level, concentrated in the high-end and luxury segments, and with extended deadlines for delivery, which allows us to better plan our sales strategies aimed at increasing value.
We are very aware of the moment we're going through concerning credit and funding for the real estate industry. We are cautiously monitoring inflation and interest rates. We believe that in this context of more restrictive availability of capital, well-structured companies can find great opportunities for the purchase of land and creation of partnerships for development. Our company has a solid financial structure, is liquid, and has the lowest levels of leverage. In recent quarters, we have recognized significant cash generation that will allow us to calmly decide allocation and take advantage of new deals that we will make. We began 2025 with our company adjusted to our strategic position in the high-end segment and yielding consistent results from this strategy. Our margins are consolidated at high levels and give us growth potential, prospects for high profitability in the future.
I would like to thank you again for attending this call. We may now move on to Q&A.
We will now begin our Q&A session. Remember that to ask questions, you must click on the Q&A icon at the bottom of your screen and type in your question to join the queue. When you are called, a request to activate your microphone will show on the screen, and then you must activate your microphone to ask the question. We would like to advise you to ask all your questions at once. Let us now proceed to our first question. It comes from Juliana Veiga, Itaú BBA. Juliana, you may now ask your question.
Good morning, everyone. Thank you for taking my question. I have two questions. First, I'd like you to comment on what's the demand like, what you can see in 2025, especially in the third quarter.
How you see the demand in sales in July and now in the beginning of August. If you could comment on the first one. Second, I would like you to comment, if possible, regarding the cost for the increase in sales and administrative expenses.
Juliana, good morning. Marcio here. Regarding demand for the third quarter, we noticed a very resilient third quarter. We saw a strong drop in the month of April. It was not typical. Maybe some events that happened internationally because of the war. We still see some resilient market, especially high-end, and sales are consistent with the demand. This is supporting our launches. We see in the second quarter that we are awaiting two launches that will be made. We will see if this will remain consistent. Regarding expenses, Dzik will answer that question.
Hello, Juliana. Thank you for the question.
Just complementing Marcio. Our market numbers of the first quarter, we talk about São Paulo, specifically of launches. The market still supporting high levels of launches, some record numbers, and also great absorption. When we talk about sales expenses, what we saw is we prepared a very robust sales stand. We are doing all the work, and this is a very big project. It is BRL 1.3 billion of PSV, so we took a series of actions. We have a very good prospect for this launch, but there was a mismatch because most of these sales expense happened before, and the result that we are going to see in the next quarter. Regarding administrative expenses, we had some oscillations, some fluctuations, which is normal considering our dynamic of remuneration bonuses.
These effects quarter-over-quarter are expected, and our planning is well-adjusted, and we will see something the same base as last year, considering our administrative and sales expenses. We did not notice any difference in level in the company.
Perfect. Thank you. Thank you.
Our next question is from Herman Lee, Bradesco BBI. Herman, you may now ask your question.
Good morning, Marcio, Dzik. Thank you for taking my question. I have one question here. The company has been generating cash, which is consistent, and it is a very healthy level of leverage. I would like to understand better how the company is planning to expand this leverage level, if you plan to do it, and if this is going to happen due to the increase of launches, and this will reflect into payout of dividends.
Hello, Herman. Thank you for the question. Dzik here.
A little bit of all the three you mentioned. We talked about this. We have some fluctuation quarter-over-quarter, but the company is at a level of 30%, okay? What we see in the short term are opportunities for new businesses. We have this anti-cyclic mind. We see the markets a little less competitive in the purchasing area. This is an area that Marcio is still monitoring very closely. We have been planning for the next quarter, something like BRL 1.5 billion of launches. These are the two projects we mentioned. We have a huge project with RFM and a different payout in our planning. We are focused on ROE. The level of interest rates we are going through, we are being very cautious regarding our planning.
But at the end of the day, the 3 points that you mentioned are true, and we see our leverage moving up around 30%.
It's very clear. Thank you.
Our next question comes from Matheus Meloni, Santander.
Hello, good morning. Thank you for taking my question. We have two questions. First, considering deliveries. If I'm not mistaken, you had three projects delivered this year. What can we expect from the deliveries for the next quarter and then the consequent cash generation? The next question, connected with the first one, is how you see these transfers, considering this project. If you can see some difficulty, then what's the total value locked regarding this?
Hello, Matheus. Dzik here. Complementing. I'm going to answer in the macro level first, and then we go into the project. We have seen a good volume. We are in a cycle of deliveries.
We have been in this cycle for a little over a year. As you saw, we have BRL 1.5 billion of deliveries to be made in the next 12 months. So the receivables is relevant, and the issue of cash generation is connected with what I answered. It has to do with the opportunities for new businesses that we see. We have good revenue to do these deliveries. It will depend on our allocation strategy as we see new business opportunities moving ahead. Considering the process of transferring this finance, so this is a point we need to pay attention. We are reasonably shielded against this, but we have deliveries from clients that traditionally finance. So our average is around 50% of transfer receivable of savings is reasonably above the market average. We have some fluctuations regarding the kind of project.
The higher the level of the projects, the less we depend on finance. But we have 20% - 30% paid up front during the construction work in the middle- income level. We are studying some alternatives to finance and also the best way to allocate these clients. This is a point that requires attention. But because our portfolio is very concentrated in the very high- end, despite this more restrictive environment, we are not so impacted by it.
Thank you, Dzik.
We remind you that to ask questions, you must click on the Q&A icon at the bottom of your screen and type in your question to join the queue. The Q&A session is now closed. We would like now to give the floor back to the company for their final remarks.
On Even's behalf, I thank you for attending this call, analysts, investors, and we'll see you on the next call regarding the third quarter. Thank you.
Even's earnings call concerning the results of the second quarter of 2025 is now concluded. The Investor Relations department is at your disposal to answer any further questions you may have. Thank you to all attendees, and we wish you a nice day.