Earnings call transcript: EZTEC Q3 2025 beats EPS forecast significantly

EZTEC’s Q3 2025 earnings call revealed a remarkable performance, with earnings per share (EPS) of $0.84, far exceeding the forecast of $0.32. This 162.5% surprise was accompanied by a revenue of $469 million, surpassing expectations by nearly 40%. Following the announcement, the stock price rose by 2.05% in after-hours trading, closing at $18.92.

Key Takeaways

• EZTEC’s Q3 EPS beat forecasts by a significant margin, driving a positive stock reaction.
• The company achieved its highest net profit since 2017, with a net margin of 39%.
• Strong performance in the São Paulo real estate market contributed to revenue growth.
• EZTEC anticipates continued success in 2026, with potential benefits from lower interest rates.
• The company is strategically positioned in the mid-income real estate segment.

Company Performance

EZTEC reported robust results for Q3 2025, with a net profit of $183 million, marking its best performance since 2017. The company’s focus on the mid-income real estate market in metropolitan São Paulo has paid off, with strong sales and efficient cost management driving profitability. EZTEC’s return on equity (ROE) reached 15% for the quarter, highlighting its effective operational strategies.

Financial Highlights

• Revenue: $469 million, up significantly from forecasts
• EPS: $0.84, compared to the forecast of $0.32
• Gross Margin: 44.7%, supported by construction efficiencies
• Net Margin: 39%, reflecting strong profitability

Earnings vs. Forecast

EZTEC’s Q3 EPS of $0.84 surpassed the forecast of $0.32 by 162.5%, a substantial beat that underscores the company’s strong operational performance. The revenue surprise of nearly 40% further highlights the company’s ability to exceed market expectations, driven by strategic sales and cost management.

Market Reaction

Following the earnings announcement, EZTEC’s stock price increased by 2.05% in after-hours trading, closing at $18.92. This positive movement reflects investor confidence in the company’s strong financial results and future prospects. The stock remains within its 52-week range, with a high of $19.80 and a low of $10.38, indicating stable market performance.

Outlook & Guidance

EZTEC remains optimistic about its future, anticipating continued strong performance in 2026. The company plans to expand its portfolio with new launches, particularly if interest rates decrease. With a robust land bank and strategic partnerships, EZTEC is well-positioned to capitalize on opportunities in the mid-income real estate market.

Executive Commentary

CEO Silvio Ernesto Zarzaur emphasized the company’s strategic positioning, stating, "We are moving into a new playing field." He highlighted EZTEC’s competitive advantage, noting, "The market selects the best companies." Zarzaur also reassured stakeholders of the company’s commitment to quality, saying, "We deliver exactly what clients expect and what they paid for."

Risks and Challenges

• Potential interest rate fluctuations could impact real estate demand.
• Economic uncertainties may affect consumer confidence and spending.
• Competitive pressures in the real estate market could influence pricing strategies.
• Supply chain disruptions might affect construction timelines and costs.

Q&A

During the earnings call, analysts inquired about EZTEC’s construction economies and margin improvements. The company addressed its inventory management strategies and discussed the potential impact of interest rate changes on its business. Additionally, progress on the Star Towers project was highlighted, showcasing EZTEC’s commitment to delivering value to its stakeholders.

Full transcript - Ez Tec SA (EZTC3) Q3 2025:

Pedro Lorenzo, Head of Investor Relations, Isitec/EZTEC: Good Good morning. Morning. I’m Pedro Lorenzo, Head of Investor Relations at Isitec. Joining us for today’s presentation are Mr. Silvio Ernesto Zarzaur, Board member and CEO, Samir El Tayar, Vice Chairman of the Board, Marcelo Zarzaur, Vice President, Director and Commercial Director, Vlad Rasarzour, an Executive of the company as well.

Please note that this event is being recorded and all participants will be in listen only mode during the company’s presentation. After our remarks, we’ll open the floor for a Q and A session, at which point further instructions will be provided. If you experience any technical issues, simply rejoin using the same link or meeting ID available on our website at ri.eztech.com.br. On our website, you will also find the slide deck accompanying today’s call in the Download Center. Unless otherwise indicated, all figures are stated in Brazilian reals and prepared in accordance with BR GAAP and IFRS applicable to real estate development entities in Brazil.

Before we begin, I’d like to remind you that any forward looking statements made during this call regarding EasyTech’s prospects, projections and operational or financial targets are based on the beliefs and assumptions of the company’s management as well as on information currently available to Iritech. Such forward looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions as they relate to future events and depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operational factors may affect Isatek’s future performance and may lead to results that differ materially from those expressed in such forward looking statements. I will now turn the call over to Mr.

Emilio Fogazza, our Chief Financial and Investor Relations Officer, who will begin the presentation. Mr. Emilio, please proceed. Pedro, thank you. Good morning, everyone.

As always, it’s a pleasure and an honor to be here at the third quarter twenty twenty five earnings conference call for EZTEC. I’d like to begin by talking about our launches. We are coming out from the biggest and best pace of launches for the company, and that’s throughout any either the third quarter or the already announced ’25. And that’s for the entire time, the entire history in which easy tech has been publicly traded. In 09/2025, we reached 1,581,000,000.

But all calculated, have surpassed BRL 2,000,000,000 in launches. Nevertheless, I’d like to comment about what these launches are. First, we begin with Pot Osasco. This is a My Home, My Life venture done in a partnership in the city of Osasco near major highways, 35% sold already. And these are sales that we are performing with the, utmost strategy.

The next launch is Blue Marine. This is a real highlight of the year in terms of sales. This is a socioeconomic level that EZTEC fully dominates, which is middle class and upper middle class apartments measuring 25 to 80 square meters. This is in the Saudi neighborhood close to Bandeirancas Avenue, and it’s very close to anyone going down to the beach here in Sao Paulo. It has been 63% sold.

I’d like to highlight that it was launched at the, near the end of the previous quarter and has allowed us to really perform the results that we are seeing now. And it shows the appetite of our customers and the assertiveness of the product that EZTEC has performed. Still on the topic of launches on the next slide, we have Giza San Quaitano Park. San Quaitano Park is the first phase of the launch of a property that was purchased in the city of Sao Caetano. This is a city in the metropolitan Sao Paulo region that has approximately 200,000 inhabitants and has one of the biggest HDIs in Sao Paulo.

It is an amazing public health and school system, and it is really a, a desire of many residents of Sao to move to Sao Caetano. These units measure from 59 to 89 square meters. It is strong demand in the middle class segment. We have delivered similar ventures in the cities of Guarulhos and Osasco and now Sonqueitano. This is a two phase project, three towers each.

The PSV is approximately 400,000,000 so far. And we are now going to launch the second phase as well. This is the Bosque, the woodlands phase. So we call it Woodlands or Bosque. This is PSV of 162,000,000.

These apartments are a little bit smaller than the other phase. They range from 33 to 64 square meters. And naturally, we foresee very similar sales results to Phase one. Next, we have Mocha Sitta Torino. This is the third launch in a very grandiose project with approximately seven phases in the Mocha region.

We are delivering and developing an actual park here in this region. This park supports the first launches, Forensi and Milan and now to Reno. EZTEC’s participation is 100,000,000,000 reals. The units range from 63 to 126 square meters, a total of 234 units. So these are the launches now in effect in Q4.

And all in all, as we’ve announced, these comprise our results for 2025. That being said, we have reached approximately 600 and pardon me, 29,000,000 in net sales. So in twelve months, this is almost 1,400,000,000.0. And this quarter is already officially the best quarter in sales in the company, in the company’s history. These units have been selling very well, and they will comprise approximately 91,000,000 in revenue for the launches that we performed this year.

And so to conclude our operational section, I will highlight to everyone the deliveries of the companies. This year, we have delivered more construction projects than ever, 2,600,000,000.0. And in the first half of the year alone, already surpassed 2,000,000,000. And all of the projects had some sort of savings that were positive to our results. We are now in Q4 ’twenty five with the official government approvals for both projects with PSV really surpassing everything we’ve seen before.

We are now going to have our shareholders meetings and act effectively deliver the units to the residents once the condominiums are established. These deliveries compose over 76% of the units. You’ll note that in 2024, all ventures we delivered already surpassed 91% of units sold. In other words, our the the way we manage projects that are finished or nearly finished are not just profitable, but are actually very significant for the company as for the way we do our business. So let’s move into financial highlights.

Our revenue surpasses BRL 1,600,000,000.0 in twelve months, but year to date sorry, in the third quarter is BRL $470,000,000. Of those, 90,000,000 are recognition of revenues from ventures that were launched during the year 2024. A highlight is on Blue Marini, which had almost BRL 65,000,000 in revenue. Now on to gross margin. We reached BRL $2.00 9,000,000 in gross margin for gross profit, sorry, for a growth of almost 10 percentage points compared to the gross margin from one year ago.

This is extremely accelerated recovery, and it deals with the way we carry out the construction ventures, the way we present the units that we have for sale through the commercial department and the INCC portfolio adjustments as well. But when we look at our RAST margin, we see a 40% half margin, and this indicates this shows the company’s backlog revenue that is included in our documents that we have shared. Something else that is always important is the performing receivables and the company’s cash management. In the nine months of 2025, we reached $580,000,000 in our portfolio. This is a result of million in new regions, whether that’s because of the sales that commercial performs or by delivering ventures, which gradually is a portion that is becoming more and more significant as time passes, though it is still small comparatively.

In 2024, this portfolio begins with $500,000,000 and it is now giving us returns of over 20%. This makes us very comfortable in the client payment profile, and some of these are financed over thirty years. So on average, duration is seven to eight years. A highlight of this portfolio looking into the future is that for the BRL38 million results, that includes 2.7 negative IGPDE. So this portfolio is corrected by the IGPDI.

So it’s naturally to be expected that for Q4, we will have financial results that are likely to be even better because of the correction to the IGPTI rate. This leads us to our net profit and ROE. It was BRL 183,000,000 in Q3. This is a highlight since 2017, and we’ve performed five forty four in the past twelve months for approximately 11% ROE over twelve months. Of course, individualized, that’s 15% ROE, 183,000,000, which if you compare to the ROE over the past quarters, this is quite significant ROE.

The net margin reaches 39% and sets the tone for the, reception of the projects over the past few years, whether that’s because of rapidly acquiring land banks, divesting ourselves from land that we are not going to be immediately using or new ways of working for each unit in terms of the commercial department or any other number of initiatives that I couldn’t list here, they all work together to produce this result. So now let’s talk about how how solid our company is. We have produced cash in the nine months of 2025, 201,000,000 reais year to date. And in the perspective of the holding company, we can see BRL 200,000,000 with regard to our corporate debt. So we are net cash in the holding.

And in the SPEs, we have net debt of approximately $375,000,000, which is a figure that we can consider to be essentially financing for the Star Towers venture. $265,000,000 is the net debt overall, which is better than the number for 2024. And our corporate debt, BRL 700,000,000. Now in Q4 with subsequent events, combines with BRL 400,000,000, so BRL 1,100,000,000.0. And we have issued a very successful CRI issuance through XP and their associates with at 98% of CDI at five years and the remainder, 99% of CDI at six years.

So you can observe that from the perspective of the average cost of our debt, if you consider that almost all of our debt today is below CDI and the production debt is at 8.4, we are turning third party capital within the company at approximately 80% or 85% of the CDI rate. And so to conclude this part of the presentation, we come to the company’s dividend, which already add up to along with what we will announce, add up to over BRL $330,000,000 in dividends payable or already paid during the year 2025. Now we are talking about BRL $220,000,000 in dividends, 87,000,000 of which are going to be paid now in the November and EUR 133,000,000 in mid December. So all in all, by the end of the year, we’ll come out to a little bit over BRL 1 per share, totaling over $339,000,000 in dividends over twelve months. So we really honor our investors by generating cash over 2025 and paying out dividends at this level.

Now I’d like to open for remarks for Mr. Silvia Ernesto Zazur, the company’s president. First, I’d like to thank everyone here in the call for joining us. I’d like to mention that these results aren’t the results of one single quarter. They’re the results of extensive planning that has been occurring since the end of the pandemic.

To the point where we arrive, where we can now reap the fruits of all of our work, we owe these results to many different initiatives that have all added up, many different concepts. We’ve been purchasing different properties, selling at different spreads. We’ve been working in a way that is quite quite a lot stronger when it comes to engineering. We’ve also been working very effectively at management managing the administrative lines. And the way we we the way we reward the executives and officers at the what I mean is that today, EZTEC, when you consider how solid it is, how how properly and effectively we work, we really stand out for the the correctness of our corporate activities, the way we manage our cash.

We innovate every everywhere we work, how we offer our products, how we in our relationship with employees, with vendors, we innovate in how we position ourselves within the market. And you will also see that let me let me mention the launches so far. We’ve launched over 570,000,000, and we are going to close the year. We have two two ventures currently being sold that Emilio has mentioned, one in MoCA and one in Songkaitana. And the the model apartments are open for visitation.

We’re going to publish the results in a couple of weeks from now, but I can already tell you that the results are quite good. The sales results are very expressive. And we are going to continue doing what we are prepared to do. So the the results include very relevant construction economies. These actually these economies have been our we’ve been implementing economies since, the start of the year, if not further back.

All of these initiatives and strategies have been bearing fruit, relevant fruit for the company. The financial aspect with Emilio, my brother, Flavio and my brothers, Flavio and Marcelo, they’re all very strong in their departments. My in laws, Mauro and Roberto, they’re all very skilled at what they do. So all in all, I’d like to say that we are modernizing the company and changing the company’s level. We’re moving into a new playing field.

And so that is what brings the relevant results. And even more relevant is the positioning that the company is adopting. I think that’s it for me. I’m open for questions. Flavio, who’s the Director here at the company, can answer your questions as well.

Good morning, everyone. It’s a huge pleasure to be here and share the results of this quarter. As Silvio mentioned, we are all strongly aligned, and this is not due only to this quarter. This is work that we’ve been undertaking for approximately, three years now. This came from a pain point that we felt during the pandemic.

We noted that we needed to course correct back at that time. And the sad passing of my father. So after that point, we really changed tack to make the company more perennial, more long lasting. So we are perfectly on track. We are moving very well in our strategy.

And it’s also about choices. We can’t be good at everything. So when we work with low income segments, we work with partners. Of course, in the future, we that’s something that we can become skilled at ourselves. But right now, we recognize that working with others is a great strategy.

So it’s a very clear strategy for us, and it makes me very comfortable when I see when I look forward and see the next two upcoming years, I’m confident we’re going to have good results because we’re not working in just one segment, just one sector. No. Instead, we’re working on many different sectors and segments. If anyone has any other comments, please feel free. Absolutely.

It’s when we look at the past quarter, we see the results of three years that Silvio has spearheaded in realigning all the company’s departments. So this result is really just the beginning. The work is ongoing, and it’s going to be even better over the upcoming quarters and years. EZTEC is now once again a very profitable company. So really, that’s it for me.

And if anyone else has anything else to say, absolutely. I’m confident that EZTEC is going to continue to grow and progress in many of its channels because it’s a company that works with honesty and with punctuality. And God willing, our results next year will be even better than this year. Thank you all for joining us. It’s a pleasure to be here.

All right. Let’s open up for questions. Thank you for the presentation. We’ll begin the Q and A session now. We’ll start with questions from the sell side analysts that cover the company following a pre established order provided that each speaker has activated the raise hand button on Zoom.

As time permits, we’ll also address questions submitted via the chat. If we’re unable to answer your questions during the session, we kindly ask you to send it along with your e mail address to our Investor Relations contact on our website. Our IR team will then follow-up with you directly. Our first question comes from BTG Pactual from Mr. Gustavo Kambova.

Gustavo, you may proceed. Hello. Good morning, everyone. I have two questions. First, regarding the large volume of deliveries that you have right now, what do you see as the gross margin dynamics?

First, you delivered in the third quarter results a construction savings that is quite significant. Is that due to one specific project or perhaps the venture or sorry, the vintage as a whole? Do we have a more conservative budget perhaps? Or is it something else? And also the margin dynamics for the finished inventory because you have quite a lot of inventory.

Right? So I’d like to understand, is that going to generate are these deliveries going to generate a lot of finished inventory? How do you see that margin? My second question is with regard to dividends. You had strong cash generation in Q3.

You announced BRL220 million in dividends. But when I look at the balance, your leverage is very low. So given the potential for taxes impinging on dividends, I’d like to understand how you see the potential to possibly issue more dividends before the end of the year due to this legislation? Or conversely, do you perhaps believe that this volume is already the total volume for the year? Thank you.

I can I can talk about the construction economies? This is due to engineering efficiency. This is something that is present in the past month, in the past quarter and in the upcoming quarters as well. So wherever we have construction, we have construction economies and adjusted figures. So our engineering department, either they contribute a margin at the end of the construction that raises the ventures figures or they have been doing that since the beginning and these numbers are already computed.

So as you mentioned, yes, it’s going to be present in the upcoming deliveries. But over time, it naturally becomes worked into the numbers because all of our projections, more and more already consider these savings. So they don’t they’re not unexpected. They are going to be less and less unexpected. And on the topic of margin, I think I’ll let Emilio talk about that.

I can perhaps help out. Of course. Thank you for your question. In terms of margins, in this balance sheet, it does have to do with vintage and not with one or another specific venture. Since it pertains to vintage, it means that the construction that began in 2021 are, they are including these economies.

It has to do with the processes, with our organizational structure. It has to do with, with supply structure. And also in 2021, some costs, not all, but some were higher than what we are seeing today. So that’s one aspect. And another important part of your question, I showed that 73% of properties delivered this year are already sold.

So I have roughly 24% of inventory. So essentially, one quarter of our economies are assigned to this inventory. So this inventory already surpasses as gross margin already surpasses our half margin, our reference margin. So when we sell this finished inventory and as we sell it over the upcoming quarters, we will see a positive impact of that on the gross margin. So I think that answers that aspect and now about dividends.

Let me add something to make something clear. Just to add some context to the construction economy with our capital structure and our efficient engineering department, wherever our engineering department doesn’t point out construction economies, that is because they have already implemented these economies. So our buyers are feeling comfortable because of the interest rate, the labor market, etcetera. And when we combine the administrative, financial management, engineering, sales efficiencies, advertising efficiencies and others. That allows us to sell at lower cost than the competition.

So something that’s clear and obvious, but that merits being said. In order to attain these sales volumes, we have sold for less than the competition. But because of our entire structure, this is something that we can do. So for the time being, we can sell for less than the competition. Now if the market shifts, we will also shift in order to get even better results.

So for the time being, this is how we’re doing business. If and when things change, and I understand that there is, for instance, much stronger demand next year, then at that point, we will raise prices, and we will get even more margin. So we’re always looking, first and foremost, at liquidity. We want to sell a lot. We want to launch a lot of ventures and units.

So as the market shifts and changes, so too will we change to adapt to this changing market. Gustavo, did we answer what you asked? Anything else? No. Thank you.

Thank you. Have a great day. Thank you, Gustavo. Our next question comes from Citi with Pietro. Pietro, you may proceed, sir.

Good morning, everyone. Kudos on the results, and thank you for the conference. I have two questions as well. First, I’d like to follow-up on the previous question about gross margin, but really specifically about DRE. What was the scope of the construction economy that led to this 44.7 gross margin level?

And excluding this effect, what would have been the gross margin for the quarter? And for the upcoming quarters, do you also foresee gross margin to be at the same level given that the construction economy level is likely to be similar even though the deliveries are not as concentrated. So what do you foresee for gross margin levels? And excluding the construction economy effect, what would the result? And secondly, the question is about sales expenses, but more specifically, the launches that were postponed, which you mentioned on the release, there were two model units that were postponed because their launches were rescheduled for 2026.

Why were they postponed? Is it a stick a sales strategy? Is the project being adapted or something else? Thank you. Gerald, good morning.

It’s great to have you. Thank you for your question. First, about gross margin. I’d like to first remind everyone that I mentioned we have 600,000,000.0 in deliveries in the third quarter. When I look at our rev margin, and you’ve seen this rev margin quarter by quarter, it’s approximately 40%.

Now when I say 1,600,000,000.0 in deliveries, now nominally, this is such a large volume of deliveries and, revenue to be computed that any effect is on a large volume. So the gross margin for the company is those 40%. So that four or five percentage point difference is precisely the construction economies. So there weren’t any one off effects. You’ll see that on Slide eight, there is a graph that compares the margins.

So when you look at the margins in the second and third quarters, that is precisely the increase as a result of those economies. So when you ask about the upcoming deliveries, for instance, in q four, we have roughly the same vintage. So it’s to be expected since it’s the same vintage that we can expect similar results, similar percentages. But I I can’t say definitively that it’ll be 44%. Our recurring margin is approximately 40%, and that’s what we published.

Now as for the postponements, well, the model units are ready. We have all of the sales staff already there. Even though the building itself isn’t finished, it’s a metropolitan building with Lindenberg in a downtown region or a city center region. There was a delay due to city hall taking longer to publish some documents. So due to that delay from city hall and due to our strategy, we decided to postpone to 2026.

But even without that venture, we are going to reach the sales volume that we projected in the past. So there was really no significant impact. And next year, for this venture, we’ve already we’ve already had all the expenses this year. So next year, we’re only going to have profits from that venture. There’s also an impact from the sales office in the Songkai Tunno location.

It this sales expense is quite significant. And nevertheless, we launched very successfully. Yes. In Sao Caitano, we have four phases, and they’re all going to be sold through the same sales stand, sales office. So as we launch the units, we’re going to have lower and lower expenses recognized in our statements because the expenses have already occurred.

Next year, we also have Hockey Petroni with 140,000 square meters of private area. It’s something like 500 feet from Moronvi Shopping Center. We already have a sales office there, and we’re going to renovate it. So it’s going to give us great results in terms of sales and expenses. Anything else we can help you with, Pedro?

Piero? Thank you. It’s very clear. Thank you. Have a great day, Piero.

Our next question comes from Igor from Goldman Sachs. Igor, you may proceed. Good morning, everyone. Thanks for taking my questions. I’d like to explore on the topic of the launches that over the past few quarters, we’ve seen mid tier projects performing with very strong results.

So what do you foresee in terms of launches for the upcoming years when it comes to mid tier, high tier and low tier ventures? And is this stronger performance in mid tier changing anything in your strategy already? Thank you. Thank you for the question. Look.

I let me tell you something. EasyTech is a mid income company. We we cater to mid income customers. So the fact that we are strongly focused on mid income is natural for our strengths. Now if we look at mid and upper, I would say that upper is 30,000 per meter.

But mid upper or upper mid income for that socioeconomic level, we have a very relevant land bank. But this relevant land bank that we own possesses a strategic advantage in the way in which we made these purchases. So they give us a potential for very good margins. So in upper mid tier, maybe 15 or 17. That’s a robust land bank that was purchased with very advantageous conditions.

And we have been putting it to use over the past years, and it’s what we’ll continue to do. So we’ll continue to work very strongly in mid income levels, which is traditionally where we’ve had great results. So we really focus on, mid and upper mid. So maybe if we look at 20,000, probably almost all of our launches are within that range. Igor, did we answer your question?

Yes. That’s very clear. Thank you. Thank you, Igor. Have a great day.

Thank you. Our next question comes from Elvis from Itau BBA. Elvis, you may proceed. Good morning, everyone. I have two questions I’d like to ask.

First, about cash generation. You delivered EUR 1,600,000,000.0 in Q3, another EUR 700,000,000 in Q4. I understand that it takes a while for this to come out through the dividends. But how much of that $1,600,000,000 was passed along? And what about the sales pipeline with the Q3 and Q4 deliveries?

Of course, do you think there might be any changes? And what about leverage and cash generation? How is that looking forward over the coming quarters? The next question is about Star Towers. We see that the construction is really progressing.

Do you have an expected date of delivery? And what is there any remaining CapEx still to be recognized? And the the different, leasing processes, do we have any, any companies looking for naming rights on the tower? Thank you, Elvis. Thank you for the question.

It’s a pleasure to have you with us. First, let me talk about the, the payments and the mortgage backed receivables. All of these ventures that are financed, they’re financed by Itau. Our deliveries are very successful. We have obtained good volumes of transfers.

This means that the individuals, customers are succeeding at obtaining the mortgages from the bank because we we currently do have an estimate of 20%. So why is it an estimate? Because these deliveries were made up until the end of the quarter. And the fourth quarter began in October, so it began recently. And the transfers are still being made.

The outstanding debt is still decreasing. So we are generating cash because our debt is dropping. So probably in Q1, we’re going to start effectively collecting physical nominal profit. So 80% mortgaging, 20% mortgage backed receivables. And the results are likely to be realized within the first quarter.

Now what about Star Towers? What is the status, leasing, and naming rights? I’ll pass that to Flavio. Well, it’s been progressing quite well. The the official government authorization is going to be issued probably within the next few months, definitely by Marx.

And that also includes obtaining the official certificate for occupancy. Now as for naming rights and leasing, we’re open to, all possibilities. We do expect to lease part of the tower during the first quarter. We have a lot of demand that we’re seeing. It’s it’s not set in stone yet.

We don’t have anything official yet, but we do expect that we’re going to be able to lease part of the tower. Did we answer your question? Yes, did. Could we please just go back to the remaining CapEx for Star Towers? That would help me a lot.

Thank you. Finalizing the the facade for the second Tower, and the first tower is essentially finished. The only thing that’s really missing is the Ground Floor of Tower 2, so the lobby for Tower 2, before we can effectively say that second Tower is ready. The certificate of occupancy is going to be issued between May and June for the first tower and approximately 120,000,000 to to get those two towers to the point where we we needed to be for the certificate of occupancy to be issued and for the tower to really be filled. There’s a lot of demand for for, occupants, and so, that’s why we say that demand is pretty high.

Elvis, did we answer your question? Yes, you did. Thank you. Have a great weekend. Thank you.

Have a great day. Our next question comes from Rafael from Safra. Rafael, you may proceed. Good morning. Sorry about that.

I had some trouble with my microphone. Alright. Thank you. Good morning. I have one question.

I’d like to talk a little bit about finished inventory. With the volume of deliveries you had in the first quarter and now looking at our total inventory, I see that you have quite a lot of inventory. So what strategies are you affecting to get rid of that inventory over the next quarters? Thank you. Well, I I have two things to mention about finished inventory.

First, you deliver a tower and transferring the clients and there is, AF, mortgage backed receivables, that’s not a good point in time to to rock any boats, so to speak. So there’s an important part of that inventory was not actually made available to the company. So when you have the deliveries, then you can effectively market those units a few months, four or five months after delivery on the releases. And there’s also the fact that we’ve been launching extensively. Since we’ve been doing that and launching heavily, we have found some challenges when it comes to sales, but we’ve made some, some strategies that will keep those sales occurring strongly starting this month.

We’ve been receiving clearance of a lot of products, a lot of units to sell. And so as you can expect, we’re going to have fast liquidity. Now as far as our strategies, there’s really not much to say here. There’s many strategies that we will implement in order to be successful, and I’m confident we’re going to be very successful. Rafael, did we answer your question?

Yes. Perfectly. Thank you. Have a great day. Thank you, Rafael.

Our next question comes from Santander with Ms. Fannie Aurang. Hello. Good morning, everyone. Thank you, Pedro.

I have a question. Something that caught my attention and I’m wondering about is how effectively your launches have been performing even when it comes to the low income ones or mid income ones. We we can’t help but think about the scenario that the middle class is going through right now. And for next year, we’re going to see the beginning of drops in interest rates. So it’s likely that the interest rates will be reduced more quickly than we expected in the past.

So along that line, what can we expect in terms of launch pipeline? Can we expect a rise in the volume of launches next year? I know that you really sped things up this year, but it would be great to get an idea about next year. Good morning. Of course, we get very excited when we see that there is a potential for lower interest rates.

And we know that when interest rates drop, we sell more. And we are prepared. We have projects underway for that possibility. It really depends, as you mentioned, on the interest rates actually being cut. But as for prices, the prices are quite appropriate.

They really fit our customers’ pockets. And we have been seeing great results in the previous launches. We’ve sold 50 of units very quickly. So not only is the price a good fit today, but we also know that if the interest rates drop, we’re going to improve our sales very significantly next year because we have a lot of product to sell. I’d just like to add that these ventures we’ve been selling and selling very successfully.

These are ventures with 700 units approximately. So when you have a venture of this scale with the sales speed that we have, this means a very good fit for our product and prices. And I need to highlight that we’ve been selling at prices quite a bit lower than the competition. This is a structural convergence of many factors that allows us to do this. And this is what we keep in mind when we think about upcoming launches.

So what could be potential blocks? Well, something that comes from outside the company, and so we can’t foresee that. But other than that, I think our strategy is good. Fanny, did we answer your question? Yes.

You did. Thank you. Just a follow-up. You mentioned you’re selling at lower than the competition. Do you see the competition as being weaker today, or is it just the same as always in terms of volume of launches?

No. Not really. What what we see in the market today is that there are many large and well structured companies that do business appropriately. Do have competitive advantages. I need to mention, we are not the only company with competitive advantages.

It’s just that these competitors that have advantages, well, we’ve been really standing out over them. If you look at your middle of the road company today, they don’t have any room in the market. The market selects the best companies. So if you look at mid income companies, these are other players. They’re not really in the the Blue Zone or Pineros regions.

They’re they’re different from us. And perhaps, there’s a little bit less competition here in the Blue Zone region. But, I mean, is competition. So I can’t honestly say that our competitors are all fragile. That’s not true.

All right. Thank you. Have a great weekend. Thank you, Fanny. Our next question comes from Mr.

Huan from XP Investments. Huan, you may proceed. Hi, everyone. Good morning. I have two topics I want to discuss.

Emilio did mention in his presentation about some ROE triggers. The first is a land and SDE sale possibility that has been occurring over the past few quarters. Now what do you foresee for the upcoming scenario? Do you still have land to divest? That’s something that doesn’t make sense in your pipeline and so could potentially bring more volume?

And my second question is with regard to the metropolitan Sao Paulo region. You mentioned extensively that it’s very you have some very relevant launches in Sao Caetano in the upcoming quarter. And we also see that some other players have launched ventures there, and they’ve been performing very well just as your ventures have been performing very well. So what do you see about exploring the metropolitan Sao Paulo region? And what do you have in terms of availability to explore there?

Is it mid income, or would it be, something that you consider low income? Thank you. Let me answer. Let me answer about the FTEs first. It has to do with our strategy as well.

So there is some recurrence. I don’t know for how long exactly, but as we adjust our business, that’s what we’re doing. So we are intermediating. We are doing arbitrage for some business, and we we make some profit through there. So we we purchase stake.

We sell. We we hold it for a while. We sell it sometimes when it makes sense. So all of that brings us revenue. Now when it comes to the metropolitan region, we are very well distributed.

We have lots of land in Ozasco and in Sao Caetano. We have more land in Metropolitan Sao Paulo. Well, actually, in Sao Paulo itself that is aimed at mid income. We have some important partnerships, some relevant partnerships in the My Home, My Life segment where we work through partnerships, but they do have a relevant impact on our statements over the upcoming years. But as I understand it, competition in the metropolitan region is lower, but it’s not easy to do business there.

And that’s our specialty. So that’s a significant advantage for us. And when we talk about the metropolitan region, so not Sao Paulo, that’s either mid income or low income. So that includes my home, my life as well. Juan, did we answer your question?

Yes. Thank you. Have a great day. Thank you, Juan. Our next question comes from Carla Graca from Bank of America.

Carla, you may proceed. Will miss Carla Graca has left the chat, so we will now take mister Herman Lee’s question from Pradesco. Thank I’d like to ask about the speed of construction. Is it all within schedule? And do you have any ventures that suffered any relevant delays?

Thank you. Hello, Herman? I can tell you that no, no ventures suffered any relevant delays. The delays that occurred were either one or two months, so that’s firmly within the allotted allowance. So the customers and clients are all very pleased.

And as time passes, the delays are going to be more one off and occasional, and they’re all going to be more punctual. So we do not have any delays. I I can say that engineering has really moved into a production pace that matches what we had before the pandemic. And I want to highlight something. We we always say that we sell less than the competition.

We’ve run some comparisons and the new units have been delivered at very high quality levels. So even though we sell for very inexpensive prices, when our customers look at our sales folders and they look at what they actually purchased, it’s, the the experience they have really is that they get exactly what they paid for. And this experience is crucial because name our name is of utmost importance, and the quality of our name is extremely high because we deliver exactly what clients expect and what they paid for. That is extremely important. Pedro, I need to also mention that our name among our clients is synonymously with high quality, confidence and security.

We’ve been performing very well. It’s not that we’re a luxury brand, but we build exactly what we promise, and we deliver exactly what we promise when we promise it. See, since the market has a lot of finished inventory ready for delivery, when a client compares our products with our competitions, they see that our products are better quality for lower price. And that makes a difference. Herman, did we answer your question?

Yes. That was very clear. Thank you. Have a great day. Thank you, Herman.

Have a great weekend. Thank you, Herman. As we have no other questions and since the scheduled time has elapsed, we now pass the call to our executives for their final remarks. All in all, I can say that we are very comfortable. We have a lot of peace of mind.

The company is selling very harmoniously. We are well positioned. Our company is also more mature. I also need to highlight that. We are moving forward to become even more professional.

We are progressing with our internal controls. I mean, we’ve always had a lot of control, but we are improving that control. So we are now adopting a position when it comes to the organizational structure of a larger company. We can effectively say that we are growing internally and in terms of administration and organization. We now have the basis to grow even more.

Our position is larger than our balance sheet when you look at our governance, at our organization. So we are moving very smoothly forward. Something else I want to highlight. It’s always been a position of ours that we we need to be solid, and this is of critical importance in Brazil. So when we choose to work in the mid income segment, which is where we were born, we need to remember that.

Both, my my brothers and also Emilio, we all know how important it is to remain solid because we never know what’s going to come, what surprises the future holds. So these transfers now it could be a transfer, it could be a loan, Even though we have great partners, Itau, Casa Economica, Bradesco, Santander. Okay. That’s great. But we never know what surprises the future holds.

So these values, this essence is something we are never going to give up on. It’s something we must never lose so that we can keep our company perennial as it always has been. Ladies and gentlemen, thank you, Pedro. Final remarks. Thank you all for joining us.

This concludes EasyTech’s earnings conference call. Please check out our materials available at iri.easytech.com.br. And if you have any other questions, please contact us at the Investor Relations department. We’d be happy to answer any questions you may have. Thank you all for joining us.

Have a great day and a great weekend. Thank you. Hi.

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