Earnings Call: Q1 2026

May 15, 2026

Summary

Q1 2026 net income was negative, while adjusted gross profit reached BRL 41 million at a 37% margin. A BRL 260 million Jardim das Perdizes stake sale is intended to reduce debt, subject to conditions; management prioritizes cash generation and operating profit.

Good morning. Welcome to Tecnisa's first quarter of 2026 earnings conference call. Today we have Mr. Fernando Perez, Chief Executive Officer, and Mr. Anderson Hiraoka, CFO and Investor Relations Officer of the company, and Victor Miranda, Investor Relations Specialist. We inform you that the recording of this event will be available on the company's IR website. As per usual, we will start with a presentation by the executives and then move on to the Q&A session. I would like to turn the floor over to Mr. Fernando Perez, who will start the presentation. Thank you, Victor. Good morning, everyone. We are gathered to yet another results call. We always divide our presentation in these three sections. First, strategy, and then Anderson will address operating performance, and then financial economic performance. As far as strategy goes, I would like to emphasize a few points. First, as you all know, the sale of our participation in Jardim das Perdizes to BTG. I will get into further details on this on the next slide, but I would like to say that this deal still depends on some precedent conditions. We are advanced into the deal, but mostly we have to deal with the administrative council. We also have the continuity of launches in Jardim das Perdizes. We still have BRL 4 billion to launch, whereas Tecnisa's share is BRL 2.1 billion. In terms of land bank, it is robust at BRL 4.7 billion, of which BRL 2.6 billion is Tecnisa's share. Our focus obviously continues on commercial and marketing strategy. Our sales over supply reached 17% in the quarter. Another thing that is mandatory for us is controlling the administrative expenses. Again, we are doing a lot of work in this area, gaining productivity. This first quarter, in comparison to the first quarter of 2025, we have obtained a reduction of 15%. Profitability of the operation. Backlog gross profit totaled BRL 154 million now at the end of the first quarter. As I have mentioned, the deal with BTG Pactual was signed on April 30th. Our current equity stake is 52.5%, and we are selling half of such equity stake in Jardim das Perdizes for BRL 260 million. When this happens, we will have a new participation stake of a bit more than 26%. As I have mentioned earlier, this operation still depends on some precedent conditions, including the obtaining of prior approvals and consents from creditors. If I am not wrong, yesterday Anderson obtained the last approval necessary. Today, the administrative council has already approved it, and our expectation is that we will be able to move on as of May 18th, which is the deadline to obtain the approval. Then we also have Figueiras, this beautiful tower in Jardim das Perdizes with 104 residential units. PSV of BRL 288 million. Our participation is 52.5%. This tower contains apartments of 189 and 166 square meters. It is a very complete resort-like enterprise with playground, private elevators, fitness area, indoor and outdoor pool, massage rooms, spa. Indeed, these towers are quite unique. Now, talking about land bank, I have mentioned it briefly. We have BRL 4.7 billion in PSV, and out of this, BRL 2.6 billion is Tecnisa's share. This is related to the current scenario with Tecnisa and Hines. Out of these 4.7, we have BRL 1.8 billion in approved projects already. Now, talking about the sales strategy, gross sales reached BRL 147 million, of which BRL 81 million is Tecnisa's share. We have been increasing our SOS in comparison to the first quarter of 2025 by 17%, an increase of 3 percentage points. As to administrative expenses, I have mentioned it earlier, for us, this is extremely important. We were able to reduce costs by 15% in comparison to the first quarter of 2025. Another important aspect which we are all very proud of is that in spite of these measures for productivity gain and cost reduction, for the fourth consecutive year, we were recognized with a Great Place to Work certification, which reinforces that we continue to have a very healthy and collaborative work environment. As to backlog gross profit, it totaled BRL 154 million in the first quarter of 2026 with a gross margin of 41%. I would like to emphasize that in Jardim das Perdizes, where most of our projects are located, that is 46%. The other projects have a lower margin. When we look at Jardim das Perdizes, we see a very interesting gross margin. It has reached 47%, and there is a trend to increase it even further. Now I would like to yield the floor to Anderson, our CFO, who will talk about operating performance and financial and economic performance. Thank you, Fernando. Good morning, everyone. Now talking about our operating performance. We talked about gross sales of BRL 81 million, as mentioned earlier, and in net contracted sales, we obtained BRL 69 million. This is a 3.7% improvement in comparison to the first quarter of 2025, reaching 17%. As to inventory, due to the BRL 81 million in sales, we have reached the end of the quarter with an increase of participation by Tecnisa. Most of the inventory is located in São Paulo. We still have some under construction, so we estimate to have virtually 100% of this sold by the conclusion of the project. Now to the financial performance. Net revenue, in comparison to the first quarter of 2025, had some variation. We delivered both Bosque Pitangueiras and Unik in the fourth quarter of 2025, and in the first quarter of 2026 we delivered Reserva Figueiras. The adjusted gross profit was BRL 41 million, whereas the adjusted gross margin reached 37%. This is above the results obtained in the first quarter of 2025. Now, talking about the receivables schedule in comparison to the debt. In 2027, we shall have BRL 334 million in receivables, which we are comfortable with regard to this debt. When we look at debt from 2028 onwards, we have BRL 140 million in receivables in 2028. We still have inventory to sell, the BRL 404 million, which gives us the confidence to proceed with the projects and make all of the payments. Now, with the completion of the sale to BTG, most of the resources will be allocated to debt, so the debt volume shall be reduced substantially. We should also have an extension of time to pay off the debt. Now, as to the net income, the results were negative in the first quarter, and backlog gross profit reached BRL 154 million with 41% of margin, which is very interesting for the company. Now to cash position. We reached the end of the quarter with BRL 139 million. There is a reduction in comparison to the first quarter of 2025 due to the amortization of corporate debt. As far as equity goes, we have reached the quarter with BRL 264 million, a reduction in the period as well. On the upper right side, net debt reached BRL 503 million in the first quarter of 2026. When we sum the debt from all the projects, our indebtedness reached BRL 579 million in the first quarter of 2026. This concludes the results presentation, the earnings presentation, and now I open the floor to questions and answers. We received a question from Fanios Soares, and he says, "From the point of view of investors, is it better to sell our shares or wait for the sales of Jardim das Perdizes?" Let me see if I understood your question correctly. We build to sell, right? What happens is this neighborhood, this project was a huge success. We can sell it easily with a large margin. As we know, we have the leveraging of debt. The cost of debt is very high. Because of this, we decided to reduce our gains, but obviously reduce the debt. Selling these shares to BTG allows us to reduce the cost of debt or to drastically reduce the cost of debt, which makes us be in a more comfortable position. Yes, we are giving up on a large share of the project, but this makes the finances much healthier for our business. Also, there is a question here, will Tecnisa sell more of Jardim das Perdizes share? We are open to good deals. We made this good deal. We have been negotiating with Cyrela and realized that the deal would not be that great, and that is why we gave up on selling to Cyrela and made the deal with BTG. We are satisfied with it, but we are open to good offers. It depends if a very good deal comes up, we may do it. Wenan asks, when will the profit be distributed in results? The profit is recognized or acknowledged as we deliver the projects. We still have BRL 1.6 billion in PSV in development, due to be released in 2027 and 2028. So these results will come up throughout this period. Wenan also asks, is Tecnisa's expectation to have a net profit in 2026? He thanks us. We thank you for your participation and questions. We aim at net profit, but due to the recent past issues when we built throughout Brazil with these partners who left us with lots of bills to pay, obviously we pursue net profit, but more important than that is cash generation and operating profit. The company is attaining large profits, still dealing with damages from bills from the past we have the obligation to pay off. Our expectation is that by the end of 2026, early 2027, we will not have to deal with these issues from the past, and we will have results with net profit. Perfect. Thank you. I do not think we have any other questions, so I would like to thank you and yield the floor back to Fernando Perez for his final remarks. We would like to thank your participation, and we remain at your disposal, working hard in the sense of offering the best results possible for our shareholders. Thank you very much. Have a great weekend.