Neinor Homes completes a transformational year, delivering on its FY25 guidance and positioning for further growth

Core Viewpoint - Neinor Homes has successfully met its operational and financial targets for the seventh consecutive year, driven by strong demand in Spain's residential market and the strategic acquisition of AEDAS Homes, positioning the company for further growth [1][3][9]. Financial Performance - In FY25, Neinor delivered approximately 2,900 housing units, an increase from 2,397 units in FY24, aligning with its targets [3][7]. - Total revenues reached approximately €700 million, at the higher end of the guidance of €600-700 million, while Adjusted EBITDA was also at the higher end of its guidance, between €100-110 million [4][7]. - The acquisition of AEDAS Homes is expected to positively impact net income, with a projected non-cash impact of €65 million [5][10]. Acquisition Impact - The acquisition of AEDAS Homes for €1.8 billion is a significant step in scaling Neinor's operations, allowing the company to develop approximately 43,200 housing units [9][10]. - This transaction is expected to enhance Neinor's cumulative net income guidance from €360 million to €510 million, representing a 40% increase, and expected shareholder distributions from €600 million to €850 million, also a 40% increase [10]. Market Dynamics - Spain's residential market remains strong, supported by structural undersupply, economic growth, and improving affordability, with GDP growth expected at 2.9% in 2025 [11][12]. - The housing market activity strengthened, with residential property transactions increasing by 6% year-on-year, while new housing completions declined, highlighting the ongoing supply-demand imbalance [14][15]. Strategic Growth - Neinor has exceeded its investment objectives set in its 2023-27 Strategic Plan, deploying over €2.7 billion of capital, significantly surpassing the original target of €1 billion [17]. - The company is well-positioned to continue capital deployment under its equity-efficient strategy, targeting growth in both its core build-to-sell business and emerging segments like independent senior living [18][19].