Nexity - 2025 Full Year results

Core Insights - Nexity has successfully derisked and deleveraged its balance sheet, achieving robust results and a return to operating profitability in 2025, with net debt halved over two years and a healthy cash balance of €588 million [3][8][51] - The company is consolidating its leadership position in the Residential Real Estate market, with improved sales performance and a market share increase to 13% [4][13] - The outlook for 2026 indicates further improvement in operating profitability and a continued reduction in the leverage ratio, targeting below 3.5x by 2027 [6][59] Financial Performance - Revenue for Nexity in 2025 totaled €2,821 million, down 15% compared to 2024, primarily due to a decline in business activity from ongoing projects [31][30] - Current operating profit for New Nexity was €25 million in 2025, a significant recovery from a net loss of €118 million in 2024, driven by restored margins and cost-saving measures [34][10] - The leverage ratio at year-end 2025 was 4.9x, ahead of the anticipated trajectory, reflecting effective financial management [8][51] Business Activity - The company recorded 12,008 reservations in Residential Real Estate for 2025, a market share increase of 10 basis points despite a 10% decrease in volume [13][17] - The backlog for Planning and Development stood at €3.9 billion, equivalent to approximately 1.5 years of revenue, with a business potential of around 42,000 homes [17][18] - Commercial Real Estate order intake was stable at €75 million in 2025, despite a challenging market environment [20][21] Operational Developments - Nexity's new organizational structure, "New Nexity," has shown effectiveness, particularly in commercial successes outside the Paris region, such as the MAN project in Nantes and the St Paul complex in Tours [4][53] - The company has maintained a strong liquidity position, with €588 million available, including an undrawn credit facility of €475 million [51][38] - The working capital requirement (WCR) was reduced by approximately 30% to €606 million at year-end 2025, reflecting improved operational efficiency [43][52] Strategic Initiatives - Nexity's environmental strategy aims for a 42% reduction in carbon impact per square meter delivered by 2030, with significant progress made in 2025 [44] - The company has focused on optimizing land acquisition and project timing, leading to a more selective approach in its development strategy [52][40] - The finalization of the Property Management disposal plan has streamlined operations, allowing Nexity to concentrate on its core business areas [23][40]