Helbor Empreendimentos S.A. ($HBOR3)

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 assessed on the company's website, ri.helbor.com.br. The presentation is also available for download. [Operator Instructions] 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 relate 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 fourth quarter of '25. 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 operation 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 4Q '25 total gross sales reached BRL 661.8 million, with a growth of more than 15% compared to 4Q '24 and 38% to the 3Q '25 driven mainly by the strong performance of the quarter's launch. Helbor's 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's 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's share was 17.5%. For the total year, the SoS was 48.1% and Helbor's share of SoS reached 44.4%. Regarding launches in Q4 '25, the company launched 4 projects, 3 located in Sao Paulo, Casa Piaui, Garden Design Private Park Residence and the second phase of Clube Patteo Sao Bernardo. And the Neo Concept in Mogi das Cruzes which showed excellent sales performance of its launch weekend. The total net sales value was BRL 959 million with Helbor's holding of 48%. In the year-to-date, 11 projects were launched and totaling a net VGV of BRL 2.2 billion, with 60% for Helbor's participation. In the Q4 '25, we delivered 2 projects Duo Lifestyle and Patteo Sao Bernardo with a net VGV of BRL 331 million, with Helbor Holdings 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 '25, 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'd 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 potential acquisition intended for the development of residential projects under the Minha Casa Minha Vida Program on the Semp Toshiba land. With this context, Helbor will maintain minority stake equivalent to 30% of the HESA 159. This MOU also contemplates the potential acquisition by Cyrela of 19,195 Certificates of Addition Construction Potential. Marcelo will give more details of this topic through the presentation. Now I invite to Marcelo Bonanata to present the operational highlights. At the end, I will be available for the Q&A session.

Good morning, Henry. Good morning, [indiscernible]. And we started with the land bank, the strategy of the company, land bank of quality with a potential VGV of BRL 10.2 million, 61% Helbor's part with BRL 6.6 billion. It's important to show an oxygenation in relation to this land bank, last year we sold 3 piece of lands, one in Campinas, one in Sao Paulo and the [indiscernible] neighborhood and one in Campo Grande. We are not operating in these areas and we are strategically oxygenating our land bank. And in the last Friday, we signed an MOU with Cyrela. Cyrela is acquiring the Semp Toshiba piece of land and with the financial swap and we are holding 30% of the new incorporation with BRL 1.5 billion of VGV. And the most important we sold 19,000 CEPACs to Cyrela. Many people asked if you are going to Minha Casa Minha Vida Program? Yes, we will. But with those who know how to do learning [indiscernible], we had 2 [indiscernible]. And now this big development with Cyrela with Minha Casa Minha Vida supported by experts. In the second slide, we see the 4 launches we had in 2025 with BRL 959 million with Helbor participation of 48%, but this is especially due to Garden Design development we have at Lapa, where our net participation is slightly smaller. So that's why the total in the fourth quarter, we have this slightly lower, but we will have the 70% in the new launches. Casa Piaui is another launch I'd like to highlight in Higienopolis, this is the net PSV. So Neo Concept in Mogi das Cruzes, we have BRL 241 million, [ 60% ] participation, and Patteo Sao Bernardo in the second phase, we launched it last year, 50% Helbor's share. So 2025, we had 11 developments launch with PSV of BRL 2.2 billion with 60% Helbor's share. In the contracted sales, we closed Q4 '25 with BRL 662 million in relation to the last quarter of 24% and 38% in relation to the third quarter of '25, and we closed in '25 with 90% above the 2024. So a very consistent performance, especially in relation to '24. In the next slide, we see in our commercial strategy, our PSV we had 19%, 19.7% and 16.1% [indiscernible] total of 48.1% and Helbor's 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 Sao Paulo. And by segment, we have mid-high with the largest support, but also highlighting the high and very high especially in economic and commercial. The commercial comes from the legacy inventory. So the total SoS of BRL 2.8 million and Helbor's 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. So we had already inventory almost reaching BRL 2 million in 2018. But today, we have already of BRL 509 million, and this inventory is concentrated, especially regarding the [indiscernible] development of very high level, and this is concentrated in this development. We have very few unities but of very high level. And the legacy inventory, we have only BRL 7 million, so we are reaching now at the area of the mutual agreement. We had a total SoS of 331%, 73% Helbor's share. The first one is Duo Lifestyle [indiscernible] neighborhood, very close to the [indiscernible], a very compact development with sales speed is spectacular. We have 100% sold. And then Helbor Patteo Sao Bernardo also mid- and high level development, and we have almost 94%, so we had 10 projects delivered in 2025 with a total PSV of BRL 2.1 billion. You see that Patteo Sao Bernardo in spite of the high interest rates, we delivered the development with almost 90% of the units sold. This is very important, Helbor has never forego the segment it operates even with high interest rates, we have a great potential due to our reputation. The onlending increased last year, we had BRL 1.7 billion onlending in 2025, BRL 1.90 million [indiscernible] more than in 2024. And Henry always highlights that how much it's important to sell. But it's more important to have the onlending because this is the moment we have the return on investment. The company launched the [ 2b ] and the onlending was about BRL 2 billion, and this year with what we launched and what we did onlending. And these are the 16 developments on the construction other with a total PSV of BRL 3.7 billion with delivers until 2029. On the upper line, you see the developments delivered in 2024 and in the -- and below, we see the projection for 2026, 2027, '28 and '29, 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 onlendings. So 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 '24 and 34% compared to the third quarter, '25. The variation between the periods mainly reflects the change in sales mix. In 4Q '25, 90% of the sales correspond to units launched during the period, 28% in 4Q '24, 29% to units under construction and 49% in 4Q '29 and 23% to ready or completed units, the same percentage observed in 4Q '24. In 3Q '25, the composition was 40% under construction, 35% completed and 25% in launches. In 2025, net operation revenue was BRL 1.1 billion, 11% reduction compared to 2024, also impacted by the sales profile. In 2025, the profile was mixed with 41% units under construction, 32% in launches and 27% completed units. While in 2024, the distribution was 49%, 18% and 33%, respectively. Now moving to the right side of the slide, the gross profit and gross margin in for 4Q '25, gross profit was BRL 93.7 million, 21% reduction in relation to the 4Q '24 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 Q3 '25 gross profit increased by 32.5% and the gross margin in 30.1% in the Q4 '25. 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 discussed the result to be appropriated, which represents the recognition is still in conversion that will be the appropriated net revenue totaled BRL 716.7 at the end of 2025, 61% increase when compared to the Q4 for 2024. The revenues to be appropriated refer to following projects. Alegria Patteo Mogilar launched in 4Q, Open Mind launched in the second quarter '23 and Patteo Vila Mariana launched Phase 1 in 2Q '24. And the second phase in the 4Q '24, a Neo Concept launched in 4Q '25. Together, they represented 73% of revenue of the appropriation or the backlog margin. The backlog margin was 28.8%. In the fourth quarter '25 general and administrative expenses, excluding depreciation and amortization, total BRL 27.3 million, an increase of 4% compared to the 4Q '24. And this growth was driven primarily by the increase of personnel expenses due to the salary adjustment of 5.5% and 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 '25, commercial expenses totaled BRL 24.8 million, accounting for a 19% increase compared to 4Q '24 and 38% increase compared to 3Q 2025. This growth is mainly explained by the higher volume of sales commissions in line with the strong commercial performance in addition to hire a diverse 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 on sales stands in the creation of model apartments. Moving to Slide 18. Consolidated net income of Q4 '25 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 '25 and BRL 11.3 million in 2025. As mentioned by Henry at a Board of Directors meeting was accepted the distribution of dividends of BRL 2.5 million. Now going to Slide 19, the gross consolidated debt at the end of '25 was BRL 1.864 billion, a 6.4% reduction compared to '24, the decrease is mainly due to the higher volume of amortization carry out on construction financing, notably the settlement of [indiscernible]. The availability at the end of '25 totaled BRL 250.2 million, resulting in a net debt of BRL 1.614 billion equivalent to 57.7% of consolidated equity. This ratio represents an increase of 2.2 bps compared to the end of 2024. Now 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 explained, expenses related to Patteo Klabin and Semp Toshiba land and settlement of the grant and payment of the solidarity quota installment of Havva project in Sao Paulo. So the consolidated and nonconsolidated company, therefore, the Q had BRL 81.4 million in the year, considering consolidated and nonconsolidated company, we had a cash generation of BRL 9.1 million. And to close the presentation, moving to the last slide, we reinforced 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 land that does not fit in our long-term strategy. In 2025, we sold 3 plots of land. And now in March, we signed the MOU with Cyrela on the Semp Toshiba land. Completed the construction and guarantee the delivery of 5 projects by December, totaling a PSV of BRL 1.2 billion, strategic launches in Greater Sao Paulo and Mogi das Cruzes aligned with the best market opportunities. And 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.

[Operator Instructions] The first question is from Gustavo [indiscernible] 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? And 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 the leverage. We have a daily struggle to reduce this percentage of deleveraging 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 adapting that is slightly high. But I'd like to highlight the following 2 aspects. First, this debt has been worse. If you take a snapshot of the company 2 years ago, we have a debt of -- we were with a debt of 80% and now it's around [ 58 ]. So we are doing the homework. We are deleveraging the company gradually. We cannot do this in just 1 quarter. We have long developments, but we are on the right way. And we have several other things such as the selling of some parts of land and the land bank that we associated with Cyrela will be important for the deleverage because it's an expressive value. So we are now on the right way. For those who follow the company, we said that 2025 would be a year that we wouldn't have a reduction in corporate debt. We would reduce the debt of production and the corporate debt will be over time. So the company is focused -- is working on this. We are able -- we are being able to reduce and the company -- this strategy continuous.

Gustavo, thank you for your -- for the question. But just to complement 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 incorporated debt and will change slightly the debt profile and will be debt within the projects self-liquidated and with the 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 almost resold almost everything and of our land bank for the mid-level, we launched Caminhos da Lapa where we opened the sales for a mid and high level and we sold the apartments at the range of BRL 1 million, and we did it very well. And this, we can -- will open the sales of a mid-level. We have never been segmented just to 1 product and mid and high level has been our flagship. And we want to try this units 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. And many people know that is paying more of interested, but they can balance the debt due to the elasticity the banks provided. So 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 rational distribution and participate in very high, high and mid and also investors. We mentioned the compact apartments in Sao Paulo, the studios, but we don't have inventory, they are performing. So we don't want to have a concentration. And now we have this small part in the company's portfolio. But as Marcelo mentioned, always with a partnership with those who are experts.

[Operator Instructions] The next is from [indiscernible] Bradesco BBI. In relation to the SempToshiba sales to Cyrela how much this will contribute for cash generation for Helbor? And can we expect more sales in the year sales of assets like land bank?

Well, we sold the plot, but we are part of it. So cash generation comes in 2 parts. This financial swap that we did of about [ 70% ] in PSV estimated [indiscernible]. And we have also interest of 30%, which is of a shorter cycle that will generate a good result to the company a very low cash exposure. And also the CEPAC that we sold. So when you sum everything, you see that this operation in next quarter over the year, it will reflect in our leverage reduction. And if you are going to sell any other assets, well, we are showing [indiscernible] that we want to recycle our land bank. But today, we are much more focused in approving the projects in the development and launches. And if there is an opportunity as we had to sell to Cyrela we were not -- this land was not expected to be sold, but we saw an opportunity there, which may happen, but we want to manage the land bank for our launches. Well, you see that the inventory of the company is low now. Everything we have to sell is for basically 1 year. So this year, we will have new launches very prudently, but looking to the future because it's useless to sell a plant or a land -- a piece of land and then in 1 year, you have to buy land again. So the recycling of our land bank is for a very nice. This land of SempToshiba is something that we are studying as well. We have some lands in-house that today, they have a more economic profile. So maybe we use it for Minha Casa Minha Vida launch. We can -- maybe we can do this year.

The Q&A session is closed. We'd like to give the floor to Mr. Henry.

I'd like to thank Helbor's for those who participate in the conference. Thank you very much.

The conference call is closed. Have a nice day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]