# Direcional Reports R$211 Million Profit in 4Q25 as Margins Hit Record

*Brazilian homebuilder posts record profitability with 42.8% gross margin and strong housing demand driving revenue growth.*

- Published: 2026-03-09
- Section: Insights
- Tags: brazil homebuilders earnings, Brazil housing market, brazil real estate stocks, direcional 4q25 earnings, direcional engenharia results, Minha Casa Minha Vida, riva direcional
- URL: https://brazilstockguide.com/insights/direcional-4q25-earnings/

![Direcional Engenharia quarterly results](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/img_3103.jpg?fit=1024%2C682&ssl=1)

*Direcional Engenharia Posts Record 3Q25 Net Income on Strong Sales, Margins*

**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.

---

Source: Brazil Stock Guide, https://brazilstockguide.com/insights/direcional-4q25-earnings/