By Brazil Stock Guide – Amid renewed monetary tightening and growing fiscal concern in Brazil, MRV Engenharia e Participações (B3: MRVE3) — Latin America’s largest homebuilder — reported on Tuesday (Oct 7) an adjusted cash generation of R$30 million for the third quarter of 2025. Performance was affected by delays in regional housing-finance programs, which caused a R$93 million mismatch between completed and transferred units.
According to the company, these delays stemmed from changes in Caixa Econômica Federal’s payment criteria and bureaucratic bottlenecks in regional funding transfers. The amount withheld in Caixa’s transitory account rose by R$31 million compared with the previous quarter. Without this temporary effect, MRV said cash generation would have reached R$123 million, roughly stable versus 2Q25.
The company ended the quarter with 1,400 more untransferred units than in 2Q25, which also reduced reported net sales. Still, MRV noted that its current gross margin ensures a cash-generating operation, with deferred receipts expected to normalize in the fourth quarter.
Interest rates
The sharp rise in interest rates is tightening access to mortgage credit and eroding household affordability — a key challenge for MRV’s core low-income market. Rubens Menin, the company’s founder, has publicly criticized the persistently high borrowing costs and warned of a mounting fiscal risk that constrains the government’s ability to sustain housing subsidies. “Brazil is flirting with a cost of credit that’s incompatible with productive investment and the purchasing power of workers,” Menin said recently.
Its rental-housing arm Luggo advanced three projects — Pampulha (Belo Horizonte), Samambaia (Brasília) and Mauá (Rio de Janeiro) — with a combined R$180 million PSV, all entering final stages and set to begin leasing in November. In the United States, subsidiary Resia maintained strong leasing momentum and pursued its US$800 million divestment plan through 2026, of which US$149 million has already been completed.
MRV will release its final 3Q25 results on November 12, followed by an earnings call with analysts and investors on November 13, according to its investor-relations calendar.
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