Good morning. Morning, everyone. We now start our call, our presentation of the results for the third quarter of 2026 of MDNE. I am Alan Aquino, and presenting the results today is Diego Villar, CEO of the company, and Diogo Barral, Director of Investor Relations. To make a question, we will use the same dynamic as last time. If you want to make your question, use the raise hand button. If you would like to write your question, use the Q&A function, which at the end of this presentation, we will start the question and answer session. I would like to remind everyone that any declarations that may be made during the conference are based on the premises of the management of MDNE. The future considerations are not guarantees of performance, as they involve risks and uncertainties and depend on factors which may or may not happen.
Having made this disclaimer, we will now pass it over to Diego.
Thank you, Alan. Good morning, everyone. Once again, it is a pleasure to be here with you, presenting one more webcast of results for Moura Dubeux, heading towards the end of the year. We are finishing the third quarter with a highlight since the first and second, and now in the third quarter. It is the best year for us, both in the operational performance as well as financial performance, in a sense that in a disciplined and perhaps without many surprises, which has been common for us, is what you expect from us, and these results are heading exactly what we foresaw at the end of last year in terms of performance of the MDNE group. A few highlights.
In the third quarter, we launched BRL 1.5 billion, several projects, big projects of good impact, which we are very confident about the performance and results, and that will eventually come into the financial statements of the company. In the last 12 months, with this performance of launches in the third quarter, almost BRL 5 billion in launches during 2026, BRL 4.9 billion, very close to what we gave to you as guidance for 2026. We still have launches to do in the fourth quarter. In this mix of almost BRL 3.4 billion came from closed condominium, 69%, and BRL 1.5 billion, or approximately 30% in the development model, basically in the Mood and Ún1ca brands. We do not use the Moura Dubeux brand for these development models.
We reached BRL 841 million in net sales in the third quarter, where we suffered the most, basically because of the dates of launches of our projects, as well as the performance of the elections, the polarization which we suffered in the Northeast, even though it gave a consistent vote to the left, the right, basically our clients of higher income, and all this discussion that there has been, which delayed the taking of decisions to buy our products. So, we had a weaker third quarter in sales. However, with the performance of October, which we have already closed, we guided you that we should have a performance of between BRL 3.8 billion and BRL 4 billion in net sales. When I look at the 10 months to date, closing October, we have a monthly average, brings us to exactly a little bit more than BRL 3.9 billion.
We're still confident, we remain confident in the results. We've distributed much more caution in our business plan, because we have several concerns, and I think all of you do, with the anticipation in the repricing of the other developers. I mentioned this in my message from management, with the total visibility that we don't have, that we don't know how the market will behave during 2027, but we're very confident that we're going to be able to deliver what we have guaranteed, what we have guided for 2026. When I look at the next 12 months, we have accumulated BRL 3.6 billion, which will take us to the average performance, which we look at, not including the fourth quarter of last year, which was very weak.
We should head towards the center of the guidance that we gave you. BRL 2.4 billion of the BRL 3.6 billion came from the condominium model, and BRL 1.2 billion from the Mood Incorporation model, Mood and Ún1ca, their performance in the last 12 months at the close of September. The overview of our operational, Barral is going to talk a little bit in detail about that. Looking at the financial numbers, BRL 709 million was our net revenue just in the third quarter. Remember, this was the annual level of revenue of the company, a 36% gross margin. Only in the third quarter, we accumulated in 12 months with the closing of this quarter, guiding the company to three for the end of the year, and BRL 1.8 million of the came from the condominium model, and 990 in the development model. The development model, 64%.
64% in one and 36% in the other. The result which comes to our stockholders, BRL 150 million, very much in line with what we guided in the third quarter for 2026. We said that we would run around 600. We've already delivered that in the last 12 months, and we're confident with the performance for the fourth quarter. This is a number which, in fact, we will consider to be predictable. Everything that we said we would be able to do for 2026, we're delivering exactly that, 21% of net margin with an average return on equity of 24%. This brings Moura Dubeux to the best developers of middle and upper class developers in Brazil.
Some of the parallels, even at closing the third quarter with this performance in third quarter, we still are very proud of this number, knowing that our commitment to go forward improving, and this is our objective. It's not the numbers itself, but the percentage that we're seeking to try and deliver. We paid dividends of BRL 100 million, which ending the cycle of payments for 2026. Now we're looking at 2027, where we will increase the distribution of dividends to the stockholders. Our commitment of having a net debt above our net equity, even with the purchase of a large plot of land in Bahia with more than BRL 2 billion in potential VGV, the old post office building in Salvador, because it was an auction, a federal auction of that piece of property.
Even with the payment of that of BRL 100 million, we did not go over our limit, which we established as a paradigm, an internal paradigm, which is 20% of net debt to equity. Going forward, just to talk a little bit about October, we launched here in Recife, a launch called Office Park. These are offices, compact offices of 18 to 36 meters, a very differential building, not in terms of its sophistication, but in technology, construction technology. We took the best of the construction processes that we have in the lower and middle income models that we have, and we implemented it in a high-level product with good quality and industrialized facade. We're bringing into Moura Dubeux that which was a challenge for the market, which was the productivity and the lack of labor, two things which have helping the internal product with strong construction technology.
The market reacted very well. Just in October, we were able to sell 600 offices, which is one of the motives of our good sales performance in the month. It's a product which has a high return. It comes with a good price, and it has a huge demand. Currently, there are 1,500 units, so we're doing very well in October. Only 15 days on the market. In Fortaleza, the condominium, the Beach Class Essence, which is something which we controlled in a wonderful location in Meireles with strong demand and good performance. It's a product in our Beach Class product in Meireles, unique, and various other projects with excellent sales performance, and which has been one more success. One next question. Next slide. Now I'm going to pass it over to Barral.
Before that, what we're thinking about and which all of you were surprised, us as well, from the change from the first to the second round of elections, we don't have any political side in the company. We do have concerns, economic concerns. We're expecting these signals, what will be the fiscal policies, what will be the route forward for Brazil in terms of the composition of ministries, responsibilities, how the government will be organized to be able to take a position. Up until then, what we're doing now is taking decisions which involve a great deal of caution, protection of our cash position, mitigation of risks.
Under current conditions, we imagine that 2027 will be a more challenging year since we opened our capital, and we're prepared for that because it would be a surprise if we get a macroeconomic scenario much better than that, then we see acceleration in a recessionary period. Since then, we have been involved in this work of revisiting various of our decisions, various of our planning, several of which we'll be presenting to the market as we have more visibility into the situation. This does not impact the year of 2026. The numbers which we've delivered, both on the buy side, will be complied with. This is more for the question of the next two years, where we now have to have a perspective, a much more cautious perspective. This is very little for a company which looks always looking forward, looking at the long term.
Our project has always been in that direction. We will continue with that strategy until the scenario proves to be differently than what we're looking at right now. At the end, I'll come back to answer any questions you might have. I'm going to pass it over to Diogo Barral, who will give you, and then to Wanderley for the financial results.
Hello. Now we're looking at the launches in the quarter. BRL 1.5 billion launched, which represents an advance of 15.5% in relation to the third quarter of last year. Next to that, we see an accumulated sales of the nine months where we totaled BRL 3.9 billion, an advance of 7.3% in relation to the nine months of 2025. Sales, BRL 2.8 Million, with a concentration in our Mood and Ún1ca projects in the beginning of September. With that, we present this volume launched.
Volume sold represents a reduction of 21.5% in relation to the third quarter of last year. In the accumulated of nine months, we have BRL 2.9 billion sold, an advance of 8.3% in relation to last year. We are presented with 8.3% of our gross sales in cancellations. When we talk about the pure, or we go real cancellations, which excludes the changes in ownership names and so forth, we have a cancellation of only 3.9% in line with the indicator which we presented in the second quarter. Our VSO in last 12 months, consolidated VSO is 44.7%, and launches 48.6%. Looking at our stock at the market value at the end of September, we totaled BRL 4.3 billion. These concluded, these ready to sell, ready to occupy, is a very low number of ready to occupy units, 3.1% of our land bank.
We have maintained our capacity to maintain this level of BRL 11 billion, a total of 60 properties, of which 80% were acquired through swaps and 20% in cash. We closed the third quarter with 73 projects underway, 28 development, and 45 condominiums. Closing the operational area, we always bring our provision in relation to deliveries in the accumulated of nine months, because of the 10 projects delivered, we have seen one more condominium in Pernambuco. Now to close, we have four more units to be launched at the end of the year. Now I'm going to pass it over to Wanderley, who's going to pass our financial numbers.
Good morning. Starting with the net revenue, we delivered BRL 709 million in the quarter, an increase of 29% compared to 2025, and pretty much in line with the second quarter of 2026.
We see an important advance of revenue in the development model, and we also had a reduction in the condominium model, which is very much due to the reduction in sales in that segment, which impacts the adhesion fees, the sales fees. Looking at the year-to-date numbers, we have BRL 2 billion 70 million of net revenue, 25% above the same period of 2025, with the highlight of the growth to condominium revenue, which went to an important growth for our results. Looking at the gross revenue, we closed the year of BRL 270 million adjusted. The gross margin was 38.3%, a slight reduction in relation to previous quarters. Here, the highlight was the reduction in margin, naturally, with the natural revenue due to the reduction of condominium adhesions. It increased slightly above the recent quarters.
In the year to date, of the first nine months, we closed with BRL 828 million of net revenue, 38% above what was last year. An important gain of 2.4 percentage points in the gross margin, reaching the level of 40%. The origin of revenue, basically one-third come from development and two-thirds from condominiums. The margin for development is 35%, and for the condominium, between 40% and 45%, on the average here, 42.4. Following our expenses, on the left-hand side, we look at the commercial expenses. We had a nominal reduction of BRL 58 million. Since sales fell, it was a nominal reduction, and the percentage of sales grew. It is still below what we see in the viability of this model.
However, in the quarter, we had this increase since part of these sales expenses are fixed, and the sales team, naturally, with the reduction of sales, the percentage winds up increasing. The administrative cost, we closed the quarter with BRL 48 million, an advanced nominal increase in relation to previous quarters. This is as a percentage of sales, we reached 5.2% and about revenue, 6.7% of revenue, very much in line with what we have modeled in our viability model. In relation to the last quarters, we reference to the ILP, the provisions for long-term bonuses of executives, which was approved in April. We started the provision at this quarter, which impacted already the second quarter in relation to the other quarters, and more now in the third quarter.
When we look at the going forward, this level in the third quarter is what we consider more viable for the coming quarters. Looking at our EBITDA, we had BRL 154 million in the third quarter, a margin of 21.8%, in which we accumulated BRL 639 million of EBITDA in the last 12 months, of 23% margin. In the first nine months, we have BRL 502 million, a growth of 42% in relation to 2025. Remembering that the revenue grew by 25% and the gross revenue grew by 33%, and the operational up to this increase of reflected in the scale of the company, which allowed us to increase by 3 percentage points our margin, reaching 24.3% margin for 2026. Looking at the net revenue, we delivered BRL 150 million, BRL 120 million in the last 12 months.
Our net margin was 21.2% for the 12 months, and the return, which is the most important, as Villar mentioned, close to 28%. When we compare just 2026 with the last year, it was a growth of profitability of 55%, very important amount, which was to be expected due to the size of the operation which we are running now. We always talk about future results based on these results, the results that we will have. We still have what we consider a level of BRL 5 billion in revenue, in operation, and BRL 4 billion in sales, and we expect this to grow even more. The percentage gains, we have 4% in the margin and almost 7% in gains, showing that the company which has been able to be efficient, and both for the stockholder capital as well as for our margins.
Our results to be appropriated, we had growth of 36% of profit to appropriate. It went down by half a percent, but very much in line with the segment of condominiums of closed sales, it increased by 8%, not so relevant. We wind up at this 38%. The administration fees reached 16%, naturally with the volume of condominiums that we're launching, totaling BRL 542 million in fees to recognize going forward. To close the financial numbers, we're going to bring the cash burn in this time. During the quarter, we paid BRL 100 million in dividends. Then we went to BRL 270 million in cash, not including the dividends, meaning that we also made a very important input of approximately BRL 100 million for the old post office property in Salvador to acquire that property. We also burned another BRL 170 million in other properties, BRL 70 million in other properties.
That means that we closed the quarter with BRL 340 million of net debt, 14% compared to our net equity. When we look at the fourth quarter and look at what's coming forward, we're going to see going forward, we imagine that we'll wind up at the same percentage. We look at an important cash generation for the fourth quarter, and we go forward with this mentality for 2026. We're going to understand how this scenario will be, but in general, we'll have to generate this BRL 100 million of cash, which we're going to do in other webcasts. I'm going to close here my financial questions, and I'm going to pass it back to Alan for questions and answers.
Thank you, Wanderley. We have our first question from Q&A from Luís Assis from Santander. Luis, your microphone is open. Please go ahead and make your question.
Good morning, everyone.
I just wanted to understand a little bit more your mentality based on Diego's message to be more cautious and understand how you feel about how much you are, what do you see on two points? What should we look for to see if you're going to take any decisions of holding off on some launches, depending on the size of the company? Also, the other point, looking at a more pessimistic scenario, what can we look, what can imagine will happen, will be the direction that you would like to go next year? If it increased the launches of condominiums, focusing more on Ún1ca, or what's the direction that you would be taking going forward? I think that's a question for me.
Good morning. Okay. It's very difficult to have visibility of what's going to happen next year.
There hasn't been a definition about who's going to be the Minister of Finance. We're looking, I don't think the PT itself didn't even expect to win the election. The way we're looking at this turnaround, going to reflect more on populist policies and less in fiscal controls, it's difficult to answer that question. What we've decided here internally and with the directors of the company, up until then, we're going to be very cautious until we know more. If the scenario that Fuchs just mentioned, we're not going to have any ceremony or revisiting our business plan, the measures will be reducing launches. To what level, we don't know. We need to have more visibility. But starting now, we're going to launch projects with low cash consumption or cash generation.
Those which we can have one or which can be delayed, we will delay until we have a clear perspective of what is the scenario going forward. I think in your question, you already answered your own question when you said, "What's your business plan?" We're going to concentrate on projects, Moura Dubeux, in closed condominium projects, in premium locations, and where the sales velocity will be stronger. Basically, these projects do not demand cash. The purchase of new land in cash or which generate exposition are temporarily suspended. We have very strong land bank in the company. We're going to exploit that and work on the projects which are already sold. We have lots of pass-throughs for the next six months. We're going to dedicate that to that.
Up until then, what I can guarantee to you all is, the size of a company is not our. Our objective is not size, to guarantee the lowest leverage with cash generation and to navigate better in this crisis period, which we are foreseeing, is my objective. I have no problem, if necessary, to reduce the guidance that the company to half, if it's necessary. We in the company have built the company to be long-lasting and to last forever and grow a little bit year- after- year. Our cycle is long, and we can't dive into an area where the predictability and visibility is low, and when we see difficulties forming in the future. We need to be very cautious. We've been through very challenging moments.
I don't think it'll be like it was in 2015 and 2016, but we came out of that period knowing how to conduct a company during difficult moments in the macro scenario. The company is not, as you just saw in our indicators, it's our best year in the history of the company, 2026. An excellent performance, both operational as well as financial. But with all of the caution that we've always had, we're optimistic, but also with a high level of caution. I am very, very concerned about how 2026 will be, not because the numbers of the company are pointing to that, but due to what we're seeing politically and macroeconomically. So, I prefer to adjust the company to think about a more challenging scenario than the current scenario.
Thank you, Diego.
Next question comes from Gustavo Cambauva from BTG. Cambauva, your microphone's open.
Please go ahead and make your question.
Hi. Good morning. I wanted to hear a little bit on the same subject. Villar, how do you see the dynamic of the segment, of the low-income segment? For example, the program during the Lula program, it was very good, but recently we saw several adjustments that the Caixa Econômica has been implementing. So, I want to understand up to what point you are more cautious in the segment of Minha Casa, Minha Vida and Ún1ca, and if in any way you're rethinking the growth of Ún1ca. My second question here is, if, as you mentioned, well, in the cash exposure, at the same time, we see the capital markets has gone through a correction, all the stock in the sector, and you have a model which has already been much a cash generator and dividend payments.
How do you see perhaps the possibility of paying a little more dividends and buybacks due to the fact that we see an opportunity here in the price of your shares?
Good morning. Thank you very much. Thank you, Cambauva. First of all, the question of Ún1ca. As you said, in the last four years, we took a market moment as we've never seen. The government incentivized a great deal, but I wanted, before going into the Caixa Econômica's changes, I want to say how we're seeing. Imagining how the market will be going forward. I think that we're going to have a little more difficulty to approve clients' credit due to the level of debt, which has not been resolved, and this business of the lowering of interest rates in the central bank and the signaling of a reduction.
He didn't say this in their communique, but conversing internally in the bank, as I'm sure you know, in BTG, there is a possibility of raising interest rates. The second point which concerns me, which is the question of inflation. If we look at the composition of what we see for the inflationary effects, I'm very concerned what can happen both with the IPCA as well as the INCC part for 2027 and 2028. If this happens, the model for Minha Casa, Minha Vida could have a slimming of margins, as you saw in other moments. I don't think it's going to be a parallel to what happened in 2026 and 2016, but I think we're going to have to go higher than what we've seen recently.
These two combinations, one in demand due to the question of the level of debt, indebtedness, and credit, and other in relation to costs and not being able to pass through these additional costs, as you know as well as I do, with the cost of the internal revenue and the margins. If this design comes out like this, we will be cautious in our exposure to this project, looking for a mix of passing this through, keeping part in our portfolio, another part for the client to pass through, so we can protect the company and, if there's necessity, reduce the launches and exposure in that model. That's one point, and that's for Mood. The model for condominium model has already shown itself to do very well. We have the correction of the portfolio in INCC and the return in INCC. We have a total pass-through of costs.
It's very slow and very irrelevant in this model, but also reduce my concern. What we see in perspective, in relation to opening the plan of generation of cash, perspective on the base of paying BRL 300 million next year in dividends, which is already 50% more than what we paid in 2026. Let's focus in generating more cash and with rights initiatives and the delaying of revenue. Also, if there's any more space to open up for the leveraging of the company, which will be converging to a neutral position with cash, net cash of close to zero, we can open up for the space for dividends, but this is a conversation to have further ahead. We need to have more visibility and see what's going to happen next year.
As you at the bank have been talked about, perhaps an increase of a half a percentage point in interest rates. Others are talking about recession. I need to understand what will be the depth of what we're going to live through, so that when we raise the capital for our stockholders on protecting the company, we can do some change in turn, because I'm not making any commitment to that.
The next question is from Olavo Fleming from Banco Safra. Olavo, the word is with you. Feel free to ask your question.
Hello. Thank you for this opportunity. I have two questions. First, I wanted to talk about Mood. We have seen a lot of quarters that are positive for Mood, but I want to understand how you see things given this macro scenario, which is more challenging for us. Do you consider reducing the launch for Mood? Also, do you think you can put more projects into Minha Casa, Minha Vida? That's the first question. The second question is about what Villar mentioned in terms of being more cautious in terms of the macro environment. Are you understanding that there are any concrete signals of something getting worse? Traffic or payment profiles, are there any changes or is it too early to say? Thank you.
Thank you, Olavo. About Mood, it follows a very similar dynamic to Cambauva. Our concern is with inflation and some of the clients, the Mood clients also, well, a lot less than 30%. 30% would be the max, but there is a concern, and I'm also concerned with the other point which I mentioned, which is family indebtedness. If there is a scenario of recession, then we would definitely reduce exposure of Mood in percentages that are higher than the condominium profile. First choice is always the condominium, then the Ún1ca, and then Mood in terms of cash exposure and results. That is how the company performs in terms of its projects. It does also suffer reduction, even though we have not had projects with a low performance of VSO.
The last launch was Mood Sol Bahia, and it did very well in terms of sales, but I am concerned about if this will repeat itself next year. In the beginning of last year, they said that I was too optimistic, but we delivered exactly what we had discussed with you. Today, I wouldn't say that I'm very pessimistic, I'm very cautious. That caution, if it becomes a reality, I may turn on my pessimistic mode in terms of our sales plan, and then eventually present to you quarter by quarter what it is we're feeling. About the second question, which I have already answered part of it in the first block, what we saw was the following. Before the first term of the elections, we understood that people were waiting for an answer to put off the decision-making.
Then this did not extend the lead, but we saw an extraction or slower sales in the process, not in demand, but in the process. After the second term of elections, I think there was a bucket of cold water. People think that, "Oh, since the Northeast gave high voting counts to the left, that they're optimistic." It's not the case, because let's say most of those people were not betting on a change of government. What we saw is we saw some decisions being put off, and to our surprise, both of the launches did well, but the average stock didn't perform as well as the other quarters in terms of projects.
We had two good launches that I told you about, Office Park and Beach Class Essence, and we also had a stock with everything that we launched this year, but that reduced the sales speed because of this first moment. Of course, we are still very close to the impact of negative surprise. Our clients, as well as ourselves, as well as you at buy side and at the banks recent, everyone is sort of waiting on a more clear perspective, and the government still also hasn't helped to give us a clear perspective of what next year will be like, and that is their position, right? Obviously, this environment contaminates all of those. I need to, in order to give you a better perspective and also follow your question in terms of the answer, I think it's still a bit early.
Today, I don't see any indicators that show us that next year is a good year. I think it will be actually a challenging year. That's what we're preparing for. Anyway, Brazil is sometimes we wait for a free fall, and we end up safer than we thought. We have some very simple measures could change our entire scenario, and we could go back to having demand. The economy is robust. It is a big economy. We have a strong brand, the consumer market in which we have a very strong share. Everything changes, the dynamic comes, and we might end up having the results in the fourth quarter, giving you a different perspective. I would rather be cautious, obviously, and take the necessary decisions, because if we need to reaccelerate, we can do so quickly and easily.
Thank you, Villar, for that answer.
Great answer, clear, and have a good weekend.
The next question comes from João Pedro from XP. João Pedro, your microphone is open. You can ask your question.
Good morning. Thank you for the opportunity. Trying to understand a bit of not of what it's going to be, but what it is looking like. I think the idea, well, your story goes through this excellent execution of everything you've done so well, and also the scenario of what happened in 2014, 2015, but ended up opening the margin for you to gain share in terms of what you delivered. I want to understand, and I think this has been a bit different when we look at the incorporators here in São Paulo, where competition is a bit more, well, it's tougher. I'd like to understand what you are seeing in terms of competition and the market or scenario.
Do you think that the competition will be more vulnerable? Do you think this may end up being an opportunity for you in terms of Well, I'm trying to compare with what we saw a few years ago where share was gained, given that you have a healthy balance with not a lot of debt. Despite this caution, I think the company is prepared to go through, let's say, the challenges that may arise. That's the first question. Secondly, if I'm not mistaken, I remember you talked about the end of the 6x1 scale in the labor market would not cause a big impact because you already worked in this situation before. I would just like to understand if this is correct, if my understanding is correct, and if there are any effects, and I understand it would be greatly the impact during construction.
Would you adjust the construction to have a better deadline for delivery because of the difference in the work and the labor rules now from the 6x1 shift to the 5x2 shift? Do you think this will mean less margin direct impact? Thank you.
Good morning. That was a long question. Sometimes I get lost along the way, but let's go. We work 5x2 here, so what we're concerned here is the 44 to 40 weekly hours. Let's talk about deadlines for our construction. We at Moura, since we went through the 2015-2016 crisis, we've always been very cautious, especially with projections. You can see the company's margin stability. We never took you towards understanding that the profits for that quarter or for the year were X, Y, or Z.
We always had a model of control of back office, and these controls always reflected in a very conservative way in the model, which always gave us a perspective of what we were able to deliver, in some cases, even overcoming what we delivered. In the past, we had made the decision that we would take the condominiums, which were usually doing 43 to 42 in installments to over 60. So, it's been over a year that we started selling 60 months of execution instead of 43 to our buyers. When we start with tax reform and labor reform, we don't wait for those impacts. We start working with them before. We start adjusting them in our model so that we can carefully make the model robust to change.
Alongside this, I've told you many times that regardless of the scale, regardless of what was happening, the scarcity of manpower is a reality in Brazil. The level of unemployment that Brazil is working with and the excessive social subsidies have completely discouraged laborers in the industry, not only in our construction industry, but throughout Brazil. So, we've also taken the care to invest in industrialization. We talk about new factories, new drywall systems in the walls, harmonized front entranceways. So, a lot of modernizations which help to cut costs, and with a construction system which was unthinkable two years ago because of mitigating the dependency on manpower and suffering these impacts. When we open the company's model, we create these buffers to protect us from these effects. So, can I work with this? If not, what impacts?
In the solution of what fits us, we will benefit in margin and results. If not, it is okay. As Wanderley and Barral said to you, they said that in the beginning, this did not concern us because we had already made decisions to protect ourselves. On the other end, when you ask me about possible scenario of recession or if we can strengthen the participation of Moura Dubeux and expand its share in the region, I have no doubt about that. Access to capital. The balance structure became a competitive model of market reserve, a strategic model for the company in Brazil. In an environment of high interest and of scarce credit, choosing companies with great performance and high visibility is the natural path of companies.
Lots of people, not only in São Paulo, but here as well, leverage, believing on the environments of the last few years. We did not do that. We will not do that. I always told you that we would not make the decision to grow in debt. We did not do that because in the past we did it, and we paid the price for that decision.
It could be that there is room for decreasing competition in the future, and if that market becomes more challenging or some companies that have leverage, even in our region, in considering the sophisticated capital markets to offer funding for buying land or for credit for construction, CD+, some can be still caught in the counterwinds and begin understanding what this market is like and how painful this market can be when things do not go as planned in your Excel, in your VIAP, or whatever system you are using to make things viable. Honestly, we are prepared. We do not count with the best, but we are prepared for the worst. We always are very cautious with our model, but it is possible this might happen, yes.
Thank you very much.
Next question comes from Mariangela Castro, Itaú BBA. Mariangela, your mic is open, and you can ask your question.
Good morning. Thank you for your presentation. On my end, we have two questions as well. The first, just so I am not too repetitive here, I would like to understand a bit more of the predictability of the VGV you are understanding for next year. But you also commented that there might not be any trouble to reduce the guidance or change the company's plans. Today, in your mind, what is your understanding of VGV for 2027, 2028? What numbers do you have in mind? Secondly, I would like to understand how you think of cash generation moving forward before you talk about BRL 100 million 2027, and it would be interesting for us to understand where this cash flow generation would go and what are the pathways that the company intends to use to increase volume for next year. Thank you.
Mari, good morning, and I know you're trying to pull from me things that I can't answer you, but usually, basically what happens is the following. When I say something here, it becomes a commitment, and at this moment, we don't have the visibility to give commitments, so it would be irresponsible to do so, and I won't practice that irresponsibility. Don't ask me to be so predictable. I understand you. I know you're looking for predictability. You want to revisit the model. The whole team continues working on the projects and on sales performance as if nothing had happened. Some decisions, as I mentioned, for example, suspending land purchases, which I didn't need to follow last year's guidance. It was already given. Sales performance continues doing very well, thank you. What I am doing is turning on models of control and caution for a possibly challenging environment.
What I do intend to work with now is the guidance that is going to be discovered at every launch, because I'm only going to have this launch once I have total certainty of the demand, and if I have any doubt in this environment, we would not move forward. It's not that the project was really full of doubt, but the market was a buying market, and it continued for us, allowing us to assume some risks where if we enter a recession, I will not continue with. Now, will this cause a reduction? Maybe. Of what scale? I'm still not sure. What I said here is that if it's a deep recession with a substantial drop in demand, I don't think it's a problem to reduce this company to whatever percentage I may have to for the launch standard.
My commitment is to protect the company and keep its profitability and the percentages that we have delivered to you. The size and consequence of the demand, which I'm going to give the best mode of the way as well, so we can deliver to everyone. When we give you guidance and numbers, it's because we're totally sure that we can deliver them. I don't administer the macroeconomic scenario, so when it gives me signs of change, what I have to do to be responsible is change those issues. Sorry if I haven't been able to answer your question perfectly in terms of cash generation or the launch, but the fact is that I don't have these numbers ready. I don't think I will have them ready in the short term. I need to understand how the market will behave better before I give you this.
All of this may be contaminated by the perspective of what you brought me in the last few days, the elections, and all of what you told me. But I can't just expect that next year is going to be just as good as last year was. I think that's too much, so it's too remote to be that optimistic.
Next question is from Pedro Lobato. Pedro, your mic is open. You can ask your question.
Thank you. Good morning. Thank you for opening this space for us to talk. I think most of the questions have actually been answered already, so I would just like to come back to the Minha Casa, Minha Vida issue, and if Villar can update us about this and how this partnership would work in this more uncertain, lower visibility moment. What are discussions like? Do they change the pipeline moving forward or not? Thank you.
Joint venture doesn't change. Concept of project doesn't change. Ricardo might be thinking just the same way we are. He's making decisions in JIDESA now. Last time we spoke to him, we talked about how sad we were about the shares prices. I mean, it's insane what we went through last week. It was so recent. It was just last week. He, like ourselves, is probably revisiting his guidelines. I can't speak for him. I think that question is for him. But on our end and about him in terms of the joint venture, it's the same objective and also the same way we told you. We go, we project, we project. We try to take into consideration the market perspective. The rule is to be cautionary, so we won't buy land with money.
We're going to focus on the land that has possibility of leasing and try to find in 2027 what he and I agreed. But we will only do so if that brings us margins and profitability. So, no one is going to relax on 30% margins to be able to follow guidance. We're not going to follow the guidance if we can't. So, if this is what the market is demanding in terms of price or inflation or cost, that's the perspective I had to share with you. Okay?
Thank you. Have a great weekend. Thanks for the answer.
Okay, we have no more questions. In that case, we can go to the closing remarks.
Okay, guys, that's it. I don't want the tone that I gave you here to erase the great results that I believe Moura Dubeux is delivering.
We are increasing our profit in a 50% and 50 points on what we built. We're taking the company to BRL 600 million in net profit at a low leverage of the company, paying dividends. Let's not confuse a reduction in ambition. Our ambition continues high. Our goals and our commitments continue high. I would say even higher now. Levels of vigilance in the company are much higher than they were in the last few years. And I really hope, I hope that this cautious tone won't be necessary. But I do want to say that if it is necessary, we are prepared. I trust the team. We know that our team is prepared to sail whatever oceans may await us, and I want to say that we are here to give our best. Have a great weekend.
I want to also thank you for your trust and ask you to trust us more with the following oceans.