Good morning, ladies and gentlemen, and welcome to our earnings call for the fourth quarter of 2025 for EZTEC. Hi, my name is Pedro Tadeu Teixeira Lourenço, and I am in charge of the investor relations department for this company. We have with us Mr. Flávio Ernesto Zarzur, Chairman of the Board, Mr. Silvio Ernesto Zarzur, CEO and member of the board, Marcos Ernesto Zarzur, member of the board, and Antônio Emílio Clemente Fugazza, Financial Director and Investor Relations Director. We'd like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. After that, we will begin the questions and answers session, when further instructions will be given. If anyone requires assistance during this call, please use the support RI channel sent through the chat.
If the connection fails, you can resume the call through our link on our website. On our website, you can also find the slides in the download center. We have information available in Brazilian reais, except when otherwise stated. Before we begin, I would like to mention that any statements during this conference call made about the company's business perspective, projections, operational and financial goals are simply based on the company's beliefs and assumptions and on information that is currently available. Remarks about the future are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer to future events, which therefore depend on circumstances that may or may not occur.
Investors should understand that the general economic conditions, industry conditions, and other operational factors may affect the company's future performance and lead to results that differ materially from those expressed in these forward-looking statements. Now to begin, I'd like to hand it over to Mr. Silvio Ernesto Zarzur, the company's CEO, who will start us off. Hi, everyone. Good morning. I'd like to thank you for being here. I'd like to give you an overview of what we had this year. This hasn't been as well organized, but I think it will give you a general idea of what we have this year. First, I'm going to talk about sales. We reached record sales. EZ Vendas is selling 30% above what we did last year, so the performance at EZ Vendas is extraordinary.
With the board, we are doing very well with EZ Brokers. Meaning that now we can mark it up with EZ Vendas. Although it's doing well, we want more. We are using EZ Brokers, a second sales company, to be our second house. It was created as a franchise with Gambarini, but it will be used exclusively to sell our products, and it will be 100% controlled by EZTEC. This year, we should reach, in the first quarter, a VGV of close to BRL 1 billion. Between what has been launched and what is open, we will reach BRL 950 million, more or less. We've been very strong in sales. We are at around BRL 600 million in sales for the year, which is very strong for us. The market is doing very well.
I'd like to talk about non-recurring business. Despite the name non-recurring, it's been a constant in our balances. I'd just like to say that in our pipeline, we have an expressive amount of this kind of result. This is in the pipeline for this year again. This is just how the company operates. Engineering. Engineering is getting organized. We have posted significant savings in construction, which contributed towards our results and will contribute to our future results through our margin, our PF margin, which will increase over time. We will likely reach the record sales that we had in the last quarter again. This hasn't happened yet, but it's very likely that it will. It's been many years since we had these launch guidances, so we discussed this with Flávio and the rest of the board.
When we committed to this guidance, we got very excited about doing it as fast as possible. It's like a race so that we can meet the guidance that we gave to you in the best way possible. A proof of that is what we have been able to do this first quarter. I'd also like to say that the company is making a big effort across the board. Directors have been working together, and each one has made significant contributions towards these results. These are not individual in nature. We have a big team playing all together, connected, along with the board and with the controllers. I feel very confident in running the company. I have a lot of support behind me. This has made it into an easy task considering everything we have in the company.
The scenario within the company is very good. We have some concerns about the general economy, especially on the board. We have been very conservative with our cash, although we are aiming at a VGV above BRL 3 billion, which would be 100% growth versus last year. Even despite that, we've been making careful cash management. Flávio has been taking care of our investments through the board, so this makes us feel very confident. The company has reached a different level of governance. I can say that the company is at a very good level in governance and administrative safety, just like many other major companies. This is all within the company. Controllers, everything we have.
We have internal audits, and we are basically working like a bank, so with the same administrative, security and. We also have a range of controls in the company. Reports, which I believe are only available for a bank. It's very easy for us to compile data, organize it, and this gives us predictability in our management. I'm saying this because this is very important for me to have. To have this entire vision and these controls, they really facilitate our management of the company. The results are great, but this was all done safely without putting the company at risk, without running exaggerated risks. It's important to understand that it's not about just the value, but how it was obtained, and it was obtained without any risks.
As we've done over time, we are prepared for any issues that might affect us and the economy. That's all I had to say. Thank you for listening. Thank you, everyone. Good morning. I have two perspectives from this, from the board and as a shareholder as well. I'd just like to say that the last quarter last year and this ongoing quarter had very good performances above what I imagined that we would have previously. I'd also like to say that Silvio has made very good decisions. There are some things that we're doing differently from what we did previously, and that has been very good for our results. EZ Brokers, the way in which we acquired some land in São Caetano. These are all concepts that we adapted to, learned, and are bringing into the company.
Our goal, and what we've been pursuing, this applies to the entire board, is to increase the company's ROI. This is also our goal, and we have the conviction that in the medium term, we'll be able to reach that. Congratulations, everyone, and thank you for listening. Hi, everyone. It's a pleasure to be here for our fourth quarter 2025 earnings call. Thank you to our CEO and chairman of the board for that introduction. Now we will talk about our data, and then our board will answer your questions. Starting with our launches. In 2025, we reached about BRL 2.4 billion in launches. We had 783 launches in the fourth quarter of 2025, which was our highest yearly and quarterly volumes reached by the company.
On January 3, 2026, we formalized officially our guidance after so many years without having realized it. Since 2019, our guidance was BRL 2.2 billion-BRL 2.3 billion. Like Silvio said, as our guidance was reached, this will be 100% growth versus what we did in 2024. Following that, we're going to show you what we've done in the first quarter already. Before that, in the fourth quarter, we had the first phase of the São Caetano Parque project launched. This is a project that includes four condominiums, which have about BRL 600 million in PSV, as you can see. The first was launched in the fourth quarter, and it's already at 63% sold.
We've launched a second condominium with slightly smaller apartments, but before we had the full launch of this condominium, we divided it into phases so we could have enough time at the end of December for sales, and also so that the companies, the construction companies, could create a scarcity movement, and this first phase is already 61% sold. After that, we launched Mooca Città This is our first phase of the Mooca project. These projects are being leveraged and based on a park that we are building right in front or right next to this project. It's being sold step by step, which is natural for the region. We have a level of sophistication, and we're sure that this will work out. This is the third phase, and construction is ongoing.
You can see how productive the first quarter of 2026 has been. Here we have the second phase of the São Caetano enterprise. The second condominium has been launched, and 38% of it has been sold. Out of everything sold in São Caetano, we have over 50% sold with still two condominiums to go. One of them at least will be launched within 2026. Following that, I have to mention an absolute success that we had in the first quarter, which is Metropolitan by Lindenberg. This is a project in which EZTEC has a 70% stake and our controlling company holds the rest. We started with 57% sold, and there are more units to go into the unit.
If all of them did or when they all do, we will be at 74% of units sold, which demonstrates our success. This also demonstrates that we were correct in our strategy of including EZTEC sales and brokers. Brokers is starting to work within this project. I'd also like to mention something that Silvio highlighted about the operating events which are not necessarily recurring. In the fourth quarter of 2025, we had a transaction confirmed with Cury, where we sold a 50% stake in an SPE which has a wonderful piece of land in Guarapiranga in the south of São Paulo, and it will be developed as a project by Cury, and EZTEC will remain as a manager and investor with a 50% stake. The first phase has been launched in the last few days.
BRL 146 million in PSV for EZTEC, and 60% of it has been sold. Again, we have been very successful in the first quarter, and this confirms that we've been having very strong volumes throughout the quarter so far. Until the month of March 12 or 13 in the first quarter. We're going to pause this presentation briefly. There's a new function at Zoom called Annotate, and I'd like to ask you not to use it. The annotations that you're making are appearing for the other participants. We're going to stop sharing the screen and then share again to see if we can get these annotations to go away. Please do not use this function in Zoom. Let's continue. Continuing our presentation with the next launch for the company, it will be Casas Jardim .
Just so you know, it has been listed for incorporation. That approval was received yesterday, and it will be launched in a piece of land that many of you saw our home store by EZTEC at Roque Petroni in the south side of São Paulo, close to Morumbi Mall and Chucri Zaidan. Casa Nacional is our first launch in this area. There will be others, and this will still happen in March, at the end of March, with a total of BRL 393 million in PSV. With this launch, we will have reached in the first quarter a total of BRL 900 million of launches only in the first quarter of 2026. This is nearly BRL 1 billion out of a total BRL 2.5 billion-BRL 3 billion that we informed in our guidance.
That means that we are absolutely in line with the targets that we have set for ourselves. Let's go to net sales, and then we'll go back to deliveries. Net sales are already demonstrating a growth from BRL 394 million in the fourth quarter of 2024 to BRL 556 million in the fourth quarter of 2025. Obviously, if you run the numbers, what has been sold with the launches in the first quarter will result in numbers that indicate that we have a very positive likelihood of surpassing the fourth quarter of 2025 in sales. We have been growing in sales not only versus the first quarter of 2025, but also versus the fourth quarter of 2025.
Now, in the first quarter of 2026, we grew from BRL 1.7 billion to BRL 1.95 billion, showing that ascending trajectory in net sales for the company. We'll now go back to deliveries. The deliveries that we made BRL 2.6 billion in buildings delivered with savings in their construction in most of them, and 76% of them have been sold. We did create some inventory, but that happened within 24% of our total. That was the highest year for deliveries in the company. This will not be the case for 2026. On the lower right-hand side, we can see that we have BRL 1.6 billion to deliver in 2026, excuse me, BRL 1.16 billion.
It's very likely that we will reach a higher percentage of sold areas in 2026, which means that we will not have growing inventory for 2026. It's important to mention that. Now let's look at our financial highlights. We're going to start with our revenue. This has been mentioned in our sales side reports posted today. Thank you for your dedication, and thank you for your words. What we see here is something very simple from the operational perspective. We delivered on the projects, so that means that we lost some generation in POC.
However, all of the launches and sales, I mean, the strong sales volume shows that we are creating future wealth, meaning that there will come a time in which this, these constructions begin, they deliver POC, and this results in a growth in gross income or the company's revenue for the next years. When will this happen? Starting in the second half of the year. That's when we will see most of these projects launched in the first half of 2025 happening. That's when we will start seeing revenue and POC being delivered to the company. Now, gross profits. Throughout 2025, this was benefited by some savings being recognized, and they get recognized little by little as the projects get delivered, and that's when we are confident that they really did happen and are no longer necessary in our budgets.
We saw a gross margin growth from 37.5% to 40.6%. Nonetheless, I'd like to say that these margins benefited our results, but they will also benefit the company's future results because the 25% or 26% inventory of projects that are prepared and will be sold will come at a greater margin because this is in the company's balance. Our current inventory has a higher margin versus the construction period. We will see our financial results. They are essentially impacted by two things, the company's cash, which naturally grew due to the issuances that everyone knows about that happened throughout the last 18 months. We renewed debentures and relaunched some CRI. We have free cash at the holding, and we'll talk about this later on.
This is something that has been creating great results for the company. Not only financial results, but sales results with sales alternatives. They are extremely important tools for the company. I'm talking here about the fiduciary alienation portfolio, which is concluding at BRL 615 million in direct receivables. It's important to look at the path towards that in this graph. We created BRL 205 million in new AFEs throughout the year with a BRL 78 million yield. You can see the payments accounted for BRL 151 million. This shows how healthy this portfolio is and how their maturities are becoming shorter, even though we are taking them at 20-year maturity rates.
It was about 20 or 30% of our portfolio that has received amortization with a very low level of defaults out of the total. Our financial results are contributing with our net profit, which has reached BRL 535 million. Versus BRL 118 million delivered in the fourth quarter of 2025. These BRL 535 million are an ROE of about 11%. This is growth. We're seeing solid and consistent growth being delivered. It's still short of our expectations, but we have a very solid operation behind it, and we have been posting results across all of our fronts.
I can immediately talk about dividends, which have been paid throughout 2025 and have reached BRL 309 million, representing about 58% of the company's net profit, so up from 2024. To conclude our presentation before we continue with our Q&A, here is the company's capital structure. It's represented in the right-hand side graph in 2025. It's made of BRL 1.1 billion in corporate debt and BRL 1.3 billion in holding availability, which shows that the company has been working with net cash at the holding, and that's the reason why we made those decisions about the dividends payout. Notice that we did pay out within 2025 with cash generation, meaning that we are not paying out dividends based on debt.
The debt is here to ensure our operation, and this again shows the solidity in which we manage the company. When we look at indebtedness in production, you can see that they carry BRL 286 in SPEs and BRL 147 in net debt. Most of that are currently bound to EZ Towers, which again shows how EZTEC's projects have a good cash generation by themselves with great volumes and payments. Our net debt is only BRL 147 with net assets of BRL 1.4 billion. That concludes our presentation, and we will now continue with questions and answers. Go ahead, Pedro. Thank you. We will now open up for questions. We will start by following the order on your screen.
If you would like to ask a question, please click on the Raise Hand button. If we cannot answer all of you, please send your questions through our email available on our website so that the investor relations team can answer you. The first question will be asked by Mr. André Mazini from Citibank. Go ahead.
Hi. Good morning. Two questions. First, if you can tell us about cost reductions in the next seasons. If this season that you've just delivered has greater level of savings, if the next one will have similar levels of savings than the ones we're seeing right now? If you can tell us what factors led to these savings. Was it conservative projections in the past? Any inputs, or was it a generalized efficiency gain in engineering?
Also, if you could give us some color on the strong performance that you've posted even though interest rates are still high and affordability is challenging. To what do you attribute this good performance? Was it the short offers in the region it was launched? Was it due to the competitive pricing? I know that the company carries a lot of land at a historical price that is cheaper than it would be today, or was it any other factor? Thank you. Hi, André. Thank you for your question. About the reduced engineering costs, in 2026 and beyond, we won't see the same results, but we will still see some savings being made, but not to the same order of magnitude.
André Mazini, what we're discussing here is this, for 2026, we have something that we expect, but not at the same level as 2025. The point is that there was a change in efficiency in engineering. There's a cost reduction versus previous budgets, but there was also a change in efficiency that reduced our costs at the budget level. We have more assertive budgets for this new reality, which is now being accounted for. Let's talk about the future. We have a few deliveries this year. We can only recognize something as savings after a project is concluded. Like Flávio said, we will see lower savings, but for the future, we're going to talk about 2027. I think our engineering has a lot to gain. They're gaining in efficiency and technology.
This isn't clear because you have to develop the work to see it. I do think that we will see some savings in 2027 and 2028. This is my outlook of how things are going in engineering. When it comes to sales, there's a lot happening. We have a piece of land in São Caetano. It is an old piece of land, but in São Caetano, we are paying for it. It was recently acquired in 2024 with a new modality, but it's not even paid for. When we look at the entire land bank, we have a very strong financial structure. We can be a bit more competitive in selling because of that. We are being complemented by EZTEC Brokers.
We have a competitive advantage as well. We have many brokers which allow to capture many clients. We've been seeing this for, you know, the company has been here for 45 years. All of this together allows us to sell at a slightly lower cost than our competitors with good margins, which makes us very good at selling. When someone buys one of our apartments, they are signing a funding contract. They're not concerned about the bank giving them a loan or not. Before they used to have to go to the bank, and now that they know that they have a credit line. That's a competitive advantage. As you said, some of the land has been bought at a lower price.
We are continuing to buy land outside of the market. It's very hard to see the company competing for land with other companies. We buy things out of the market, so this has been working very well. These components make us faster than other companies, but the entire market is positive, of course. We have many companies selling well. The market is doing very well, and we're taking advantage from that. Thank you, André Mazini. Does that answer your question? Yes. Thank you. The next question will be asked by Mr. Igor Machado from Goldman Sachs. Go ahead.
Hi, everyone. Thank you. The first thing I'd like to mention is about your guidance. I'd like to go deeper into your guidance to understand how you assess your possibility of reaching both ends and what are the right conditions for that.
If you can give us some information on the concentration of launches across the quarters, and if this guidance can be affected by suspended licenses in São Paulo? My second question is about the land bank. We see in the release that there is BRL 2.3 billion in resolution clauses. So is this land bank being affected, or will that change what you're expecting for this year? Thank you. Igor, thank you for your question. What I'd like to say is about the guidance. We have launched BRL 521 million this year, so that has already been launched. We have BRL 2.45 billion approved in our guidance. That no longer requires an approval. Outside of São Paulo, in Osasco, we're going to approve BRL 230 million. So this part of the guidance for me has already been guaranteed.
It's been launched and approved. What is still under that is BRL 664 million. Is that a concern? Yes, but not that much. We have other products that we can bring into our guidance to replace. That's the first thing. The company's perspective is that we are selling well. We're running to make this mission happen as fast as we can. Now that we have people buying, we're trying to launch as fast as we can. We are accelerating this to the maximum so that we can reach our guidance or most of our guidance in the first half. We're not going to split it 25, 25. We're aiming at BRL 1 billion, and we hope to launch this as fast as we can. This is the superior part of the upper bound of the guidance.
Our aim is 3.5, and we're working on that. Now, I'd like to tell you about our biggest concern. We have projects approved. We have sales capacity. We have building capacity. We have the financial capacity, but the market is a concern. In Brazil, the market is impacted by the economy, so there might be something that affects our clients' excitement. I'd also like to say that we are well distributed in types of product, except for a very high luxury. This is not in our guidance. We have some exposure to Minha Casa, Minha Vida. We are contributing to Minha Casa, Minha Vida, we will get some contributions from Minha Casa, Minha Vida, not much, but about BRL 250 million. We're going into that area again. We're very comfortable with our sales.
We're very comfortable with the sales price, and this puts us at a competitive advantage. When we go to a place like São Caetano with the private area we have there, this is something that makes the city stop. The city stopped buying to get our enterprise. The city loves that and moves around what we're doing. In Osasco, we are a little bit further from the high competition that we have here. Of course, there will be some exposure. There's no other way around it. We have another launch there, being Metropolitan. We're very strong, and we're renowned where we are launching it, and I truly believe that we'll be able to meet the guidance. We'll be very successful in our sales, depending on the general economy, of course.
The other question is about the BRL 3.2 billion in resolutive clauses. Yes, this refers to a single project which is. Well, I don't want to talk much about it, but it's for 2028. Neither for 2026 nor for 2027. It's for 2028. This is for a future guidance. Igor, does that answer your question? Yes, that was clear. Thank you. Thank you, Igor. The next question will be asked by Mariangela da Costa from Itaú BBA. Go ahead. Good morning, everyone. Thank you. I have a couple of questions. First, about your revenue. You mentioned that POC got in the way of your revenue. You had many deliveries in this quarter, but I'd just like to understand what your expected revenue will be for the next quarters.
I know that you're giving us a revenue guidance, but I'm wondering if we will sustain the same levels as we saw previously and how your revenue will evolve in the next quarters. Also, I'd like to ask about inventory sales. I know that your inventory represents about 40% of your sales, and what's your strategy to get it out, and if you can be more aggressive or maybe your selling expenses will be higher in the next quarters. What strategies is the company following? Thank you. Thank you for your question, and I'll answer about our inventories. We launched a lot at once, so you need to concentrate to sell your inventories. We have a very strong sales campaign where we're drawing the attention of our clients. We are paying condominium and the IPTU tax.
We're also creating incentives with prizes being awarded to the brokers, but we're going to sell this as the clients accept. We're going to go after the clients wherever they are to sell this. If they have trouble paying, this can be challenging for them, you know. Many questions arise. You know, with us, they already have a financing plan, but again, we're making a huge effort here, and I'm sure that we'll resolve this inventory. We adopted a policy in which we will no longer build our inventory. If you look at the average sales in our enterprises, it's much higher than it was before. We have some sales policies at launch and which are much more aggressive so that we no longer have a huge inventory.
When the next launches come, we will have a much lower inventory because we have a much higher sales policy. Since you don't have the cost in the past, this would add to your value. Having an inventory was not bad, but that's changed. Now, our inventory is not good for the company, so we understand that we need to make a huge effort. We have been able to sell it, and we're not going to have such a big inventory as we had before until we see it valuing, and then we might change our policy. Right now, we want to sell all of it. We have EZ Vendas, EZ Brokers. We have direct financing. We have a big margin, which allows us to work at lower costs.
It's not like a company that sells for a lower price and loses money. If we do that, this will fit in our balance. We're being very aggressive at selling our inventory. Mariangela, answering your question about revenue, as you said it yourself, we are not giving a revenue guidance, so I can't tell you about actual numbers. We can run this account and think about this based on logic. In 2025, we were delivering many projects, so the execution was at the final stage. This situation gave us some revenue, close to BRL 1.5 billion in 2025 revenue IFRS. For 2026, we have less ongoing construction. They're starting to gain traction in the second half of the year, so our volume is still lower.
There's some compensation within the more aggressive policies and the success that the sales have been representing. We're going to be able to advance the results recognized per project. Right now, I did not expect to have Metropolitan recognized. We have an actual possibility of that, meaning that some of the revenue will come in advance, and there will be some compensations which will take us to very similar levels. What makes a big difference in 2026 is definitely the statement that Silvio mentioned, which is our inventory. Our inventory is BRL 1 million reais in sales and revenue, and it can make a big difference for an actual revenue growth. This is our current situation, Mariangela. Does that explain it? Yes, it does. Thank you. Thank you for your question, Mariangela.
The next question will be asked by Jonathan Koutras from JPMorgan. Go ahead. Thank you. I have a couple of questions as well. First, about EZ Towers, if you can tell us about leasing and the. I know that this is a triple-A space, and you had planned to deliver the first tower in the first half. Is this prediction still standing? And also, you mentioned some specific results, SPE participations. Do you expect to still be at around BRL 90 million for the year, or have you already done amortization for most of it? Thank you. About the EZ Tower allocation, we are far along at that. We can't say what company is going in, but we will probably have the building occupied during the second half. Sorry.
Silvio is telling me that the first part, the anchor is 10,000 square meters, but there are other allocations that are also being analyzed, not at the same order of magnitude, but they will add to the whole. Throughout 2026, we will have at least the first tower well-anchored. Pedro has probably mentioned this, but we have already concluded the heliport. It's a really striking building in São Paulo, and I think this access to the roof will be very important. That's it. The second question is about. Thank you. I think so. I think that from our understanding in the pipeline, we will have results close to what we had this year. This is what we expect. It might not happen. There are things that are still ongoing, but as they get done, they will be brought into our balance.
There are things that we do which will not go to the balance. I'm going to ask Emilio to talk about something that we did that was not placed in our balance. Yes, the results should be close to what we had last year and this year. Jonathan, just adding to that answer, he's talking about something that was not added to our results, but they will be in the balance, and this will become a result, but it's not immediate. This is what he meant. Does that answer your question, Jonathan? Yes. Thank you. Thank you, Pedro. The next question will be asked by Fanny Oreng from Santander. Go ahead. Hi. Good morning, everyone. Thank you for taking my question. I have two. First, I'd like to ask you about your inventory. What percentage of it is in SFH?
There was a change in October, and its cap was raised, so I'd just like to know if you're seeing higher demand from that inventory because of that, since you can use your FGTS funds for the down payment. That's my first question. My second question is about the margins for the next launches. We saw that there was a drop in the REF margin. Do you think these margins for the newest launches, which is at around 32% according to your release, do you think they are too conservative? In the past, we saw this level of margins as well. Those are my questions. Thank you. Thank you. This is basically an SFH. We have a project here in front of our office with an open view to the park.
We sold one unit yesterday, and this is more an adjustment and consortium issue. It's a relevant inventory that we have in front of our office, but it's just about adjusting our price and selling. There's a lot of liquidity. It's ready. You know, these are BRL 12 million apartments. It's a different kind of customer. Customers that require an SFH and are not fit into that rule. No, we don't have that. In any case, our inventory of medium standard are not easy to sell. We're going to have to change our policy to make this happen. We've been doing it. This one across the building, we have a share of BRL 130 million. We have to get it out of our way.
Fanny Oreng talking about the margin for the new launches, the new deliveries that we've had. On our release, you mentioned this on page 8 of the release, which compares our margins. What you mentioned is that these margins improved in the last year, and the launches of 2025 appear on this graph with an average margin of 32%, a gross average margin of 32%. You ask if that can be improved. My comment for you is that there is a trick here about calculating the margins, because we have products that sold very well, but interest rates are very high. We are at 7.9. Our revenue for these long deliveries are being brought to the present value at a cost of 8% a year.
That's a significant part that is being taken, and that's why the REF appears as 38%. Our margins are bound to what we are delivering. Most of this is based on futures or more distant futures. It's at 38%. This is impacted by this AVP of 8% a year. Yes, it can go up because of the AVP. As we return it, we will probably get four percentage points in our margins at least. There's a natural price evolution or an increase in INCC, which continues to be at 6%. When we get to the third quarter, for example, it's going to give me an increase of INCC in May and June. That gives us a slight margin advantage.
Yes, at the end of the day, we are striking a balance between our operations and our sales, but we want to be close to the historical level or closer to 40%. Does that answer your questions, Fanny? Yes. Thank you. Thank you. Go ahead, Pedro. Thank you. The next question will be asked by João Rodrigues from XP. Go ahead. Hi. Thank you for taking my question. I have two. First, previously, you mentioned that for the next assembly, you're going to propose a new set of bylaws, so maybe more chairs on the board and an optimized board of directors. I don't know if you can say anything in advance, but I'd like to hear a bit more about the proposals you are making for the changes in the bylaws.
If you have independent members or if you only have family members, if you can give us some color on that. Also, I'd just like to ask about your release. We saw that sale cancellations were a bit higher, and I imagine that's because of the high number of deliveries that you had in the last year. I'd just like to check if I understood that correctly or if you did see any market effects that increased your cancellations. Thank you. Hi, João. Thank you for your question. I'll start answering about sales cancellations, and after that, Flávio will comment on our bylaws. João, from the cancellation perspective, what we've been seeing is this. This is a year in which we delivered BRL 2.6 billion. So naturally, there will be a change in perspectives for the buyer.
They've understood that they would not be there due to changes in their life and their location. This is natural. When we look at the first quarter, for example, I don't see the same trends. I see that cancellations are on average below the average that we had in 2025. In 2025, just as a reminder, we had BRL 2.2 trillion. It was about 13% cancellation rates, between 12% and 13% cancellations. This is not what we've been seeing for 2026. This gives me the confidence in saying that deliveries are the most important thing for this. With that being said, I'll continue with this change of the bylaws. Yes, we've been changing our bylaws, and this is a sequence of a succession that we are creating in the company.
We brought in new directors, and this is headed by Silvio. We've also included some of the company's employees with new remuneration and performance dynamics. This is the process that we're going through. What's going to happen is that over time, very calmly, as these changes take place, our shareholders will go to the board and create a council so that the company can operate. Of course, after some time in the board, we will have all the confidence that they will perform as we desire. Thank you. Yes. That needs to be done very calmly, looking at the long term. We still have a long time here in the company, but we are starting to think about the future. João, does that answer your questions? Yes. Thank you. Thank you, João. Continuing with our Q&A.
The next question will be asked by Mr. Herman Stipp from Bradesco BBI. Go ahead. Hi, everyone. Thank you. I have two questions as well. First, about dividends. I'd just like to understand what the company is thinking and what you expect on the payouts if you will be at a higher level than 2025. I'd also like to ask about how the company aims to accelerate its land acquisitions in 2026, or if you will be more selective considering the market conditions. Thank you. I'd like to talk about dividends payout. Dividends last year include the dividends in the first quarter of this year. Correct me if I'm wrong, Emílio, but I think it was paid in advance. We made an extra payout. For now, what we can expect is a 25% payout in the second and third quarters.
This is what is in our plan, but this can be changed if we have a very high cash volume or if you have more leeway. This is the idea. I'll also talk about land acquisition. This is continuing to be done just as we've always done it, very carefully. We have a huge land bank which is sufficient for the company to operate. We've been trying to increase the company's ROI. We're going to be very careful about how we do this in the company. We are buying different types of land that we have in the past. Just to give you an example of something that we did recently in São Caetano. We've launched 2, and we've just finished paying 1. This was bought in a different modality than we used to do.
We're trying to continue doing that, which is not holding that piece of land for too much time in the company and do things faster. I have to say, Emílio told me that we are not buying land, we're selling land. It's easy for us to buy land because of our personal network, which is huge. There's six of us. We have a large network. We get many offers. I don't think there's high value land areas in São Paulo that are sold without being passed to us first. We have many options, but I can say that, you know, we're being conservative because you will see significant purchases from now on, but it's very selective. Does that answer your question, Herman? Yes. Thank you. The next question will be asked by Mr. Gustavo Cambauva from BTG Pactual. Go ahead. Hi, everyone.
Good morning. I have two questions. First, about SG&A. Considering that in your release it was higher and that revenues are still lower. If you can give us your SG&A for your revenue level for 2026, that would be great. I'd also like to ask about the low income segment, considering you have BRL 2 billion of land banks in Minha Casa, Minha Vida. You mentioned BRL 200 million to BRL 250 million in launches. Considering that the program is doing very well now with the changes that will happen in March and the demand that you have in this segment, if you would consider for 2027 or 2028 to accelerate this low income part of the company. Thank you. Thank you for your question, Gustavo.
What I'd like to say is we have worked in the Minha Casa, Minha Vida segment, and we were stronger there than we are right now. We decided not to do that a couple of years ago to focus on our business, and our business is doing well. We're very organized. We are structured for medium to high income. This market, as you said, is strong, and a company of our size cannot be left out of this market. Yes, this is in the company's plans to increase our exposure there. If everything goes well, we will start doing it this year. We're going to increase it for the next years. The tax reform gave us an extra advantage here. We will not be left out of it. Thank you, Silvio and Gustavo.
About administrative expenses and commercial expenses, in 2025, we had significant increases in launches and sales without a significant increase in this line. If you notice, the variation in commercial values from 2024 to 2025 was between 5% and 6%, slightly higher than IPCA. This was in line with our inflation. Of course, we expected to increase in that direction. This increase needs to be translated into efficiency for the company. If you're asking if we see an increase in percentage of the revenue versus the revenue, the answer is no. There will naturally be some one-off things like, Silvio mentioned, there's EZTEC Brokers, a new company which will be in our administrative expenses.
The way in which they were implemented in the last years, where you can see commercial and administrative expenses are contained and offering results, this is what's going to continue happening in 2026. Emílio is not saying that we're going to remain at the same absolute numbers, but we are pursuing efficiency. We have a very well-qualified team, several investments in IT. There's a number of things that we're trying to implement which will probably lead to a lower level of growth in these expenses than the company's income. Does that answer your question? Yes. Thank you, Gustavo. Pedro? We have no further questions, and since we've gone over time, I will hand it over to our directors for their closing remarks. Thank you everyone. We are presenting our performance for last year. This was a turnaround.
We were preparing ourselves in 2024, and we had a turnaround in 2025. At the board, we created a strategy for 2025, which was met 90% of what we designed. We have other strategies for 2026. Part of them have been said by Silvio and by myself, and I'd just like to underscore that we're looking toward the future. We really believe in the company. We believe in our team of employees. We have very committed people who have been with us for a long time. Especially our clients, which will cascade what we're doing down to others. The future seems positive for us for a long time. We are very confident with the company's performance and what we will perform for the next few years.
We received many questions about our revenue and so on, but last year we had BRL 2 billion net sales. The way this is accounted for, the type of land that we have, which is often a lower price. All of this returns to the company on the long term. Naturally, in 2024, we launched nearly BRL 1.5 billion. Last year it was BRL 2.4 billion, and this year, if everything goes well, we will launch more than BRL 3.2 billion. This shows that we're going to have a significant revenue growth. It should be high throughout the years. We will probably reach this BRL 3 million revenue in a short while. This gives us a good perspective for the future.
This growth is done carefully, but we are daring. It's not that we're being conservative or that we're just sitting on our laurels. No. If we're growing 100% in 24 months, I think we're being daring, and this will continue. You can expect this revenue to happen. Also, the construction that we've been having here is under the company's control, so we don't have any unknown challenges ahead of us. We're doing what we need to do in the company. These launches are within our way of working. We're not experimenting or doing anything that we haven't done before. This gives us operational safety. Everything is under control, and this makes us confident that we will reach the goals that we've traced, and very safely. That's it.
Thank you, and we will be available if you have any other questions. Thank you. This concludes our conference call. If you appreciate our work, don't forget to share your appreciation by voting for us at Extel. We are competing there, and it's very important for us to represent you for this award. That concludes our conference call. Please take a look at our materials in the Investor Relations website, and feel free to contact our Investor Relations team. Thank you, and have a great weekend.