Q2 2026 Cyrela Brazil Realty SA Empreendimentos e Participacoes Earnings Call Transcript

Aug 14, 2026 / 02:00 PM GMT

Release Date Price: $4.03 (-1.71%)

Transcript

Key Points

Positve

Cyrela Brazil Realty SA Empreend e Part (CYRBY) delivered robust operational performance with launches surging 120% quarter-over-quarter to $3.8 billion and pre-sales up 18% to $2.6 billion, demonstrating strong demand.
The company posted solid financial results, including net revenue of $2.5 billion (up 23% QoQ), a gross margin of 34.5%, and net income of $452 million, with adjusted ROE remaining healthy at 20.9%.
Strong cash generation of $272 million in the quarter helped reduce the net debt-to-adjusted equity ratio to 16.5%, further strengthening the company's capital structure.
The low-income 'Vivas' segment continued to perform exceptionally well, contributing 40% of total sales and improving gross margins, which supports the company's overall profitability.
Management remains disciplined in capital allocation, with a strategy focused on selective launches and rigorous project selection, while also exploring opportunities like the potential sale of assets (TRX deal) to optimize shareholder returns.
Sales of finished units were strong, leading to a 2% reduction in finished unit inventory, indicating effective execution in monetizing completed projects.

Negative

The high-income segment is facing a more challenging market environment with slower demand and higher inventory levels for both Cyrela Brazil Realty SA Empreend e Part (CYRBY) and its competitors, which could pressure future sales.
The company's selling expenses increased due to higher media and point-of-sale costs, partly driven by a 120% surge in launches, which may pressure margins if not carefully managed.
Cash generation in the second quarter was partly boosted by a one-off receipt of $90-100 million from a previously sold asset, and management expects Q3 cash generation to be only neutral or slightly positive.
The equity method income line was negatively impacted by a non-recurring loss of $18 million related to a partner selling its stake, adding volatility to earnings.
July sales were slower than expected due to seasonal vacations and market volatility, and the company faces ongoing macroeconomic challenges, including high interest rates and foreign uncertainty, which could dampen future demand.
The company's inventory increased by 13% to $12.8 billion due to high launch volumes, which could lead to higher carrying costs and potential pressure on future pricing if absorption slows.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CYRE3.SA - Cyrela Brazil Realty SA Empreendimentos e Participacoes
Q2 2026 Cyrela Brazil Realty SA Empreendimentos e Participacoes Earnings Call
Aug 14, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning ladies and gentlemen and welcome to Sorela Brazil Realty's SA second quarter of 2026 earnings call.

Today with us are Mr. Miguel Meckelberg, CFO and IRO and Mr. Yuri Campos, Head of Investor Relations.

This call is being recorded and simultaneously translated.

You can hear the translation by clicking the interpretation button. To those hearing the English translation, you can mute the original audio by clicking mute original audio.

Also, you can find the slide presentation in English on the company's investor relations website at www.ri.cerella.com.br.

During the company's presentation, all participants

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