By Brazil Stock Guide – Direcional Engenharia reported R$211 million in operational net profit in the fourth quarter of 2025, a 28% increase compared with the same period a year earlier, as Brazil’s affordable housing demand continued to support revenue growth and record margins. Net revenue reached R$1.2 billion in the quarter, representing a 33% year-over-year increase and marking the company’s highest quarterly revenue level.
The Belo Horizonte-based builder posted adjusted gross margin of 42.8% in 4Q25, its highest level on record, reflecting operational efficiency and strong pricing dynamics in the low-income housing segment. Adjusted gross profit totaled R$524 million in the quarter, up 44% from 4Q24, reinforcing Direcional’s position as one of the most profitable publicly listed homebuilders in Brazil.
Operationally, Direcional launched R$1.9 billion in projects during the quarter, a 4% increase from a year earlier, while contracted sales reached R$1.5 billion. The company sold 4,227 housing units in the quarter, as demand remained strong across both its core affordable housing operations and its Riva mid-income subsidiary.
Sales velocity measured by the VSO (sales over supply) reached 21% in the quarter, slightly below previous periods due to a higher concentration of launches in December, which temporarily increased inventory levels. Even so, the company ended the year with a relatively balanced pipeline, with most inventory tied to recently launched projects.
Direcional also generated R$390 million in cash in the quarter, reflecting strong project deliveries and financing transfers to buyers. During the same period, the company distributed R$804 million in dividends, equivalent to R$1.55 per share, highlighting its strategy of returning capital to shareholders while maintaining a conservative balance sheet.
Industry signal
Direcional’s fourth-quarter results reinforce the strength of Brazil’s affordable housing cycle, driven by demand tied to the Minha Casa, Minha Vida program and structural housing shortages in major urban centers. Builders focused on this segment have benefited from faster sales velocity and strong margins, creating a rare combination of growth and profitability in the Brazilian real estate sector.
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