Half Year 2026 Neinor Homes SA Earnings Call Transcript
Key Points
- Successfully integrated AEDAS, the largest acquisition in the company's history, with zero disruption to deliveries, construction, or IT systems within four months.
- Record first-half deliveries of nearly 2,400 units and a record order book of 9,300 units worth EUR3.3 billion, providing strong multi-year visibility.
- Maintained robust gross margins of 27.6% despite cost inflation, demonstrating pricing power and healthy market demand.
- Generated strong cash flow, enabling the acceleration of EUR170 million in shareholder dividends, repayment of EUR100 million of Apollo debt ahead of schedule, and funding the AEDAS stake increase to 97%.
- Expanded the asset management platform with new joint ventures like Rio Real, reducing equity per euro of growth and enhancing shareholder returns.
- Geopolitical uncertainty from the Middle East conflict and volatile energy prices created a tricky operating backdrop during the first half.
- Financial expenses increased materially to EUR40 million from EUR10 million last year, primarily due to the Apollo EUR750 million secured notes.
- A fiscal inefficiency exists where Apollo note expenses sit at the holding level while profits are at development companies, preventing a tax shield.
- The company faces mid-to-high single-digit construction cost inflation driven by materials, which requires price increases to fully offset.
- Net debt remained flat at EUR1,166 million despite strong cash generation, due to significant outflows for dividends and the AEDAS tender offer.
Hi. Good morning, everyone. My name is Jose Cravo, and I'm the Head of Investor Relations at Neinor Homes. Today, we're going to go over results for the first semester of the year 2026. And as usual, we are here with Jordi Argemi, that is taking the role as the new CEO, Borja Garcia Egotxeaga; our departing CEO;, and Mario Lapiedra; our CIO. we will start the presentation with the key highlights in Section 1.
Then on Section 2, we will provide an update on the Spanish residential market. On Section 3 and 4, we will review operational and financial results. And on Section 5, we finish with the key takeaways. After the presentation, there will be a Q&A session to answer any questions you may have. Now I will hand over the presentation to our CEO, Jordi Argemi.
Thanks, Jose. Before I begin, I would like to thank the Board of Directors and the shareholders for my appointment as CEO and for the
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