Good morning, ladies and gentlemen. Welcome to Helbor's Fourth Quarter 2025 Earnings Conference Call. This video conference is being recorded and the replay can be accessed on the company's website, ri.helbor.com.br. The presentation is also available for download. Please note that all participants will only watch the presentation, after which we will begin the Q&A session when further instructions will be provided. Before proceeding, I'd like to emphasize that forward-looking statements are based on beliefs and assumptions of Helbor's management and current information available to the company. These statements may involve risks and uncertainties as they related to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should consider that events related to the macroeconomic environment, the industry, and other factors may cause results to differ materially from those expressed in the respective forward-looking statements.
Mr. Henry Borenstein, Chief Executive Officer, Mr. Roberval Toffoli, CFO, and Marcelo Bonanata, Chief Commercial Officer of the company. We now want to turn the floor over. Mr. Borenstein, please you have the floor.
Good morning, everybody, and welcome to the Helbor's call for the first quarter of 2025. It's a pleasure to be with you. We have today with us Roberval Toffoli, CFO, and Marcelo Bonanata, Commercial Director. Like the fourth quarter, 2025 was marked by the consistent evolution of Helbor's operational and financial performance, reflecting the disciplined execution of its strategy, the careful allocation of capital, and the continuous strengthening of its portfolio. Some of the main highlights of the quarter.
In the 4 Q 2025, total gross sales reached BRL 661.8 million, with a growth of more than 15% compared to the fourth quarter 2025 and 38% to the 3Q 2025, driven mainly by the strong performance of the quarters launch. Helbor share of gross sales of the period was 55%. In 2025, total gross sales reached BRL 2.2 billion, 9% increase compared to 2024. Helbor share totaled BRL 1.2 billion, a 6.4% increase compared to the previous year. Total SoS reached 19.7% in the Q4, while Helbor share was 17.5%. For the total year, the SoS was 48.1%, and Helbor share of SoS reached 44.4%.
Regarding launches in Q4 2025, the company launched four projects, three located in São Paulo, Casa Piauí Higienópolis, Garden Design Private Park Residence, and the second phase of the Helbor Clube Patteo São Bernardo, and the new concept in Mogi das Cruzes, which showed excellent sales performance of its launch weekend. The total net sales value of it was BRL 959 million with Helbor holding 48%. In the year-to-date, 11 projects were launched, totaling a net VGV of BRL 2.2 billion with 6% for Helbor's participation. In the Q4 2025, we delivered two projects, Duo LifeStyle and Helbor Patteo São Bernardo, with a net VGV of BRL 331 million, with Helbor holding 73% stake, of which 92% were sold. In 2025, we delivered 10 projects with a net VGV of BRL 2 billion, with 55% corresponding to Helbor's participation. Regarding transfers in Q4 2025, they totaled BRL 425 million with 64% from Helbor.
In 2025, it totaled BRL 1.9 billion, a growth of more than 10%, reaching the highest volume in the company's history. Before holding the floor over to Marcelo, I would like to highlight the announcement we made last week regarding the partnerships with Cyrela. Helbor has signed a memorandum of understanding with Cyrela, which establishes the basis for the plantation acquisition intended for the development of a residential project under the Minha Casa, Minha Vida program on the Semp Toshiba land. With this context, Helbor will maintain a minority stake equivalent to 30% of the HESA 159. This MOU also contemplates the potential acquisition by Cyrela of 19,195 Certificates of Additional Construction Potential. Marcelo will give more details of this topic through the presentation. Now, I invite Marcelo Bonanata to present the operational highlights. At the end, I will be available for the Q&A session.
Good morning, Henry. Good morning, Roberval.
We started with the land bank, the strategy of the company, a land bank of quality with a potential VGV of BRL 10.2 billion, 61% Helbor's part with BRL 6.6 billion. It is important to show an oxygenation in relation to this land bank. Last year, we sold three pieces of lands, one in Campinas, one in São Paulo, in the Butantã neighborhood, and one in Campo Grande. We are not operating in these areas, and we are strategically oxygenating our land bank. Last Friday, we signed an MOU with Cyrela. Cyrela is acquiring the Semp Toshiba piece of land and with a financial swap, and we are holding 30% of the new incorporation with BRL 1.5 billion of VGV. The most important, we sold 19,600 CEPACs to Cyrela. Many people ask if you are going into Minha Casa, Minha Vida program.
Yes, we will, but with those who know how to do, learning little by little. We had two MOUs with Cury, and now this big development with Cyrela, with Minha Casa, Minha Vida but supported by experts. In the second slide, we see the four launches we had in 2025 with BRL 959 million with a Helbor participation of 48%, but this is especially due to Garden Design Private Park Residence, a development we have at Lapa, where our net participation is slightly smaller. That is why the total in the fourth quarter, we have this slightly lower, but we will have the 70% in the new launches. Casa Pio XI is another launch I would like to highlight in Higienópolis. This is the net PSV.
Now concept in Mogi das Cruzes, we have had it with BRL 241 million, a 50% participation, and Helbor Patteo São Bernardo in the second phase, we launched it last year, 50% Helbor share. So 2025, we had 11 developments launch with a PSV of BRL 2.2 billion with 60% Helbor share. The contracted sales, we closed [2024] semester with BRL 60.62 million in relation to the last quarter of 2024 and 38% in relation to the third quarter of 2025. We closed in 2025 with 90% above than 2024. So a very consistent performance, especially in relation to 2024. In the next slide, we see in our commercial strategy our [PSO]. We had 19%, 19.7% and 16.1% and with an [SOO] year total of the 48.1% and Helbor share 17%. In the fourth quarter, 44.4%. In the next slide, we will talk about inventory.
Total inventory is of BRL 2.9 billion today, totally located in the Southeast region, our concentration in São Paulo. By segment, we have mid-high with the largest part, but also highlighting the high and very high, especially in economic and commercial. The commercial comes from the legacy inventory. The total SoS of BRL 2.8 million and Helbor share BRL 1.9 million. In the following slide, we see our inventory showing especially the ready and legacy inventory. In the ready inventory, we see the inventory of the entire sector. We had a ready inventory almost reaching BRL 2 million in 2018. But today we have a ready of BRL 590 million, and this inventory is concentrated especially regarding the Itaim development of very high level, and this is concentrated in this development. We have very few units, but of very high level.
The legacy inventory, we have only BRL 7 million. We are reaching now at the area of the mutual agreement. We had a total SoS of 21 million, [331%], 73% Helbor share. The first one is Duo LifeStyle at the Jardins neighborhood, very close to the Ibirapuera Park, a very compact development with sales speedy, spectacular. We have it 100% sold. Helbor Patteo São Bernardo also mid and high level development, and we have almost 94%. We had 10 projects delivered in 2025 with a total PSV of BRL 2.1 billion. You see that Patteo São Bernardo, in spite of the high interest rates, we deliver the development with almost 90% of the units sold. This is very important. Helbor has never forgone the segment it operates. Even with high interest rates, we have a great potential due to our reputation. The on lending increased.
Last year we had BRL 1.7 billion on lending. In 2025, BRL 1.9 billion, 2.10% more than in 2024. Henry always highlights how much it's important to sell, but it's more important to have the on lending, because this is the moment we have the return on investment. The company launched 2B and the on lending was about BRL 2 billion. This year with what we launched and what we did on lendings. These are the 16 developments under construction with a total PSV of BRL 3.7 billion with deliveries until 2029. On the upper line, you see the developments delivered in 2024, and below we see the projection for 2026, 2027, 2028, and 2029. The evolution, what is under construction and we have to develop the percentage of every sold phase and very soon we'll have these developments to the on lendings.
This was what I had, and now I give the floor to Roberval for the financial data.
Good morning, everybody. Let's see the financial results starting with slide 15. Looking to the net revenue on the left side. In the fourth quarter, net operation revenue totaled BRL 311 million, with an increase of 2% compared to the 4Q 2024 and 34% compared to the third quarter 2025. The variation between the periods mainly reflects the changes in sales mix. In 4Q 2025, 49% of the sales correspond to units launched during the period. 28% in 4Q 2024. 29% to units under construction, and 49% in 4Q 2029, and 23% to ready or completed units. The same percentage observed in 4Q 2024. In 3Q 2025, the composition was 40% under construction, 35% completed, and 25% in launches.
In 2025, net operation revenue was BRL 1.1 billion, an 11% reduction compared to 2024, also impacted by the sales profile. In 2025, the profile was mixed with 41% units under construction, 32%, excuse me, launches and 27% completed units, while in 2024, the distribution was 49%, 18% and 33% respectively. Moving to the right side of the slide, the gross profit and gross margin. In 4Q 2025, gross profit was BRL 93.7 million, a 21% reduction in relation to the 4Q 2024, when it reached BRL 117.9 million. This decrease reflects the lower sales volume of the period due to the mix of products we referred previously. In comparison to 3Q 2025, gross profit increased by 32.5% and the gross margin in 30.1% in the 4Q 2025.
For the year-to-date, gross profit totaled BRL 350 million, representing 18% decrease compared to 2024, also influenced by the lower sales volume in the previous period. The gross margin of 2025 was 31%. On the next slide, we discuss the result to be appropriated, which represents the recognition is still in conclusion that will be the appropriated net revenue total BRL 716.7 million at the end of 2025, a 61% increase when compared to the Q4 2024. The listed revenues to be appropriated refer to following projects: Alegria Patteo Mogilar, launched in 4Q, Helbor Open Mind launched in the second quarter 2023, and Pátio Vila Mariana launched phase one in 2Q 2024, and the second phase in the 4Q 2024, a new concept launched in 4Q 2025. Together, they represented 73% of revenue of the appropriation or the backlog margin. The backlog margin was 28.8%.
In the fourth quarter 2025, general and administrative expenses, excluding depreciation and amortization, totaled BRL 27.3 million, an increase of 4% compared to the 4Q 2024 and this growth was driven primarily by the increase of personal expenses due to the salary adjustment of 5.5%, resulting from the annual collective bargain or agreement signed at the end of the second quarter, medical expenses and adjustment of fees of boards and audit committee. In 2025, expenses totaled BRL 111.4 million, accounting for an 8% increase compared to 2024. As in the quarter, the increase reflects expenses with personnel and management fees. In 4Q 2025, commercial expenses totaled BRL 24.8 million, accounting for a 19% increase compared to 4Q 2024 and 38% increase compared to the 3Q 2025.
This growth is mainly explained by the higher volume of sales commissions in line with the strong commercial performance, in addition to higher advertising and marketing expenses resulting from the higher level of launches in the last quarter compared to previous periods. In 2025, expenses totaled BRL 96.3 million remaining in line with 2024. As observed in the quarter, the annual dynamics mainly reflects higher expenses on sales commissions and advertising. These effects were partially offset by the reduction on expenses of sales stands and decoration of model apartments. Moving to slide 18, consolidated net income of Q4 2025 was BRL 23.2 million and BRL 92 million for the year. The holding company's net income reached BRL 1.6 million in 4Q 2025, and BRL 11.3 million in 2025. As mentioned by Henry, at a board of directors meeting, accepted the distribution of dividends of BRL 2.5 million. Now going to slide 19.
The gross consolidated debt at the end of 2025 was BRL 1,864,000,000 , a 6.4% reduction compared to 2024. The decrease is mainly due to the higher volume of amortization carried out on construction financing. Notably, the settlement of Patteo Klabin and Reserva Caminhos da Lapa business plan. The availability at the end of 2025 totaled BRL 250.2 million, resulting in a net debt of BRL 1,614,000 ,000 equivalent to 57.7% of consolidated equity. This ratio represents an increase of 2.2 basis points compared to the end of 2024. Going to slide 20, we have the cash generation. In the 4Q, the cash consumption was BRL 85.6 million, explained by the payment of financial expenses related to Patteo Klabin and Semp Toshiba land, and settlement of the grant and payment of the solidarity quota installment of the Helbor project in São Paulo.
The consolidated and non-consolidated company, therefore, 4Q had BRL 81.4 million. In the year considering consolidated and non-consolidated company, we had a cash generation of BRL 90.1 million. To close the presentation, moving to the last slide, we reinforce our priorities to 2026. We continue to focus on active commercial management with specific strategies for our inventory, effective management of our land bank, leveraging new opportunities, and prioritizing the sale of lands that does not fit in our long-term strategy. In 2025, we sold three plots of land, and now in March, we signed the MOU with Cyrela on the Semp Toshiba land. Complete the construction and guaranteed delivery of five projects by December, totaling a PSV of BRL 1.2 billion. Strategic launches in Greater São Paulo and Mogi das Cruzes aligned with the best market opportunities.
Finally, we will continue with our discipline of cost management and reduction of leverage, ensuring profitability and financial sustainability. With that, I conclude my presentation, and now we open the Q&A session.
Thank you very much. We will now start the Q&A session for investors and analysts. If you want to write a question, type it on the Q&A and followed by your name and company. Just to remind you, if you want to ask a question, type it on the Q&A field with your name and the name of your company. The first question is from Gustavo Fabris, BTG Pactual.
I'd like to know how do you understand the leverage scenario of the company today, and what should we expect for 2026 in terms of cash generation and reduction of debt?
If you can, please, your point of view about the current moment of the mid and high level market.
Thank you, Gustavo, for your question. Talking about leverage. We have a daily struggle to reduce this percentage of the leveraging on the net assets because no one better than us know that at the end of the day, the financial expenses has a great impact. We still carry a debt that is slightly high. I'd like to highlight the following two aspects. First, this debt has been worse. If you take a snapshot of the company two years ago, we were with a debt of 80%, and now it's around 58%. We are doing the homework. We are deleveraging the company gradually. We cannot do this in just one quarter. We have long developments, but we are on the right way.
We have several other things, such as the selling of some plots of land and the land bank that we associated with Cyrela will be important for the leverage because it's an expressive value. We are now on the right way. For those who follow the company, we said that 2025 would be a year that we would have a reduction in corporate debts. We would reduce the debts of production and the corporate debt will be over time. The company is working on this. We are being able to reduce and the company, the strategy continues.
Gustavo, thank you for the question. Just to compliment Henry's response, as he said, our main purpose here, in addition to sell the buildings, we are also reducing leverage.
We have advanced the process of transforming part of the corporate debt with the debt within the projects with a larger bank, which is a good partner of us. We are very advanced in this project, and we believe this will relieve the corporate debt and will change slightly the debt profile, and will be a debt within the projects self-liquidated and with an interest rate much lower when you compare to the corporate plan. We are doing this, and we will harvest some fruits in the next month.
Well, Gustavo, this is Marcelo Bonanata. Answering your second question in relation to the mid and high level market, I would like to stress that today we have almost none inventory of mid-level ready. We sold almost everything.
Our land bank for the mid-level, we launched Caminhos da Lapa, where we opened the sales for medium high level, and we sold the apartments at the range of BRL 1 million, and we did it very well. This weekend, we will open the sales of a mid-level. We have never been segmented just to one product, and mid and high level has been our ship flag or flagship, and we want to try these unities, and we think it's important. The interest rate is more elevated, but the term of flexibilization and payment of savings really made it flexible. Many people know that it's paying more of interest, but they can balance the debt due to the elasticity the banks provide.
The mid-level segment continues to be a product that we have on our radar, and we have some seasonality, but it's also in our pipeline and we are doing a good performance.
Well, we have always worked like this. We don't want to focus on just one segment. We want to have a rational distribution and participate in very high and high end mid and also investors. We mentioned the compact apartments in São Paulo, the studios, but we don't have inventory. They are performing. We don't want to have concentration. Now we have this small part in the company's portfolio. As Marcelo mentioned, always with a partnership with those who are experts.
If you want to ask a question, please type your question in the Q&A field followed by your name and the name of your company.
The next question is from Herman Lee, Bradesco BBI.
Good morning. In relation to the Semp Toshiba sales to Cyrela, how much this will contribute for cash generation for Helbor? Can we expect more sales in the year? Sales of assets like land bank?
We sold the plot, but we are part of it. Cash generation comes in two parts. This financial swap that we did of about 17% in estimated PSV of 2 point. We have also interest of 30%, which is of a shorter cycle that will generate a good result to the company with a very low cash exposure. Also this CEPAC that we sold. When you sum everything, you see that this operation in next quarter, over the year, it will reflect in our leverage reduction.
If we are going to sell any other assets, we are showing, Herman, that we want to recycle our land bank, but today we are much more focused in approving the projects in the development, in launches. If there is an opportunity as we had to sell to Cyrela, this land was not expected to be sold. But we saw an opportunity there. It may happen, but we want to manage the land bank for our launches. You see that the inventory of the company is low now. Everything we have to sell is for basically one year. This year we will have new launches very prudently, but looking to the future, because it is useless to sell a plant or a piece of land, and then in one year you have to buy land again. The recycling of our land bank is for very nice.
This land of Semp Toshiba is something that we are studying as well. We have some lands in-house that today they have a more economic profile. Maybe we use it for Minha Casa, Minha Vida launch. Maybe we can do this year.
T he Q&A session is closed. We would like to give the floor to Mr. Henry.
I would like to thank Helbor's meeting, for those who participate in the conference. Thank you very much.
The conference call is closed. Have a nice day. Thank you.