Nexity Reports Strong First Half with Positive Operating Profit
Nexity's Remarkable First Half Performance Showcases Growth
In an impressive turnaround, Nexity has recorded a positive current operating profit for the first half of the financial year, a notable bounce back due to strategic actions implemented throughout the organization. This achievement sets the stage for a hopeful trajectory towards recovery and stability.
Financial Highlights from First Half of 2025
The company has successfully restored margins in Urban Planning and Residential Real Estate Development, thanks to proactive measures taken by its management team. As of June 30, 2025, the current operating profit stands at €6 million, a dramatic improvement compared to a loss of €54 million during the same period last year. This recovery reflects the rigorous execution of operational strategies, resulting in a 92% achievement of the targeted €100 million cost savings plan initiated for the full year 2025.
Positive Trends in Homebuyer Demand
Nexity has observed a robust 34% increase in demand from homebuyers in the first half of 2025, driven largely by appealing pricing strategies and financing alternatives that enhance purchasing power. The ongoing availability of 5,279 units aligns well with market dynamics, as the company's supply reaches a ratio consistent with pre-pandemic levels.
- Strong Buyer Momentum: A notable increase in first-time homebuyers is evident, boasting a 50% rise in Q2 compared to Q1, attributing to favorable financial conditions and innovative product offerings.
- Substantial Growth in Subdivisions: Subdivisions are witnessing a recovery with a 56% rise, fueled by extensions of the PTZ interest-free loan benefits.
- Increased Serviced Properties Revenue: Nexity's Serviced Properties business has shown a 13% revenue rise, reflecting its focus on addressing evolving client needs.
Continued Strengthening of Financial Structure
Nexity's commitment to strengthening its financial structure until 2028 is underscored by the successful repayment of €321 million in bond maturities primarily funded through available cash reserves. This prudent financial management has led to a decrease in borrowing costs, fostering a more resilient balance sheet.
Positive 2025 Guidance Reaffirmed
The company has confirmed its guidance for 2025, expecting a return to operational profitability and maintaining a firm grip on its balance sheet, forecasting an IFRS net debt of less than €380 million. This cautious approach emphasizes Nexity's priority in achieving sustainable growth and profitability.
Véronique Bédague, the Chairwoman and Chief Executive Officer, expressed confidence in the company's direction, noting that the first half of this year has showcased Nexity's extensive capacity to adapt to changing market conditions. She reflected on the successful repositioning strategies that have facilitated their return to profitability.
Nexity's results highlight a successful navigation through challenging market landscapes, reestablishing itself as a mainstay for homebuyers seeking reliable investment opportunities. Looking forward, the company is well-positioned to capitalize on emerging trends in the real estate development space, creating a balanced ecosystem that benefits both its stakeholders and the community at large.
Frequently Asked Questions
What are the key highlights of Nexity's first-half results?
Nexity achieved a positive current operating profit of €6 million in H1 2025, a significant improvement from the previous year, alongside a 34% increase in homebuyer demand.
How did Nexity address its previous operational losses?
The company implemented rigorous cost-saving measures and strategically realigned its market offerings, which resulted in restored margins and improved profitability.
What impact did the PTZ interest-free loan scheme have on Nexity's sales?
The extension of the PTZ scheme has positively influenced the recovery in subdivisions, witnessing a 56% increase in sales within that sector.
What financial measures is Nexity taking to ensure stability?
Nexity is focused on reducing its net debt to below €380 million, coupled with maintaining a strong liquidity position, showcasing its commitment to sustainable practices.
How does Nexity plan to continue its growth trajectory?
By focusing on selective development and aligning its operations with market demands, Nexity aims to foster profitable growth through innovative solutions in real estate.
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