This article first appeared on GuruFocus .
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Total Revenue (H1 2026):MXN4.59 billion, a 17.1% increase year-over-year.
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Housing Revenue (H1 2026):MXN4.45 billion, up 17.9% from the prior year.
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Homes Sold (H1 2026):3,140 homes, with an average price of MXN1,418,000.
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Operating Income (H1 2026):MXN420.7 million, an 11% increase year-over-year.
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EBITDA (H1 2026):MXN624.4 million, a 15.2% growth.
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Net Income (H1 2026):MXN363.8 million, up 3.5% year-over-year.
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Free Cash Flow (H1 2026):Positive MXN378.9 million.
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Housing Revenue (Q2 2026):MXN2.24 billion, a 12.3% growth over Q2 2025.
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Operating Income (Q2 2026):MXN190.3 million, with a margin of 8.2%.
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Net Income (Q2 2026):MXN162.3 million, with a margin of 7%.
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EBITDA (Q2 2026):MXN292.3 million, with a margin of 12.6%.
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Free Cash Flow (Q2 2026):Positive MXN360.4 million.
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Cash and Cash Equivalents (June 30, 2026):MXN2.19 billion.
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Cost-Bearing Debt (June 30, 2026):MXN2.52 billion, a 5.2% decline from December 31, 2025.
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Net Debt (June 30, 2026):Positive by MXN326 million.
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EBITDA (Last 12 Months):MXN1.24 billion, nearly 17% above the prior year.
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Net Debt to EBITDA Ratio:0.6 times.
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Cost-Bearing Debt to EBITDA Ratio:2.03 times.
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Shopping Center Revenues (Q2 2026):MXN103.7 million, a 7.1% growth.
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Shopping Center Net Operating Income (Q2 2026):MXN93.5 million, 1.7% higher.
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Shopping Center Occupancy Rate (June 30, 2026):94.1%.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Total revenue increased 17.1% year-over-year in the first half of 2026, driven by strong housing sales.
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EBITDA grew 15.2% in the first half of 2026, reflecting improved operational efficiency.
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Free cash flow generation remained positive at MXN378.9 million in the first half, supporting financial flexibility.
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Net debt to EBITDA ratio improved to a low 0.6 times, indicating a solid financial structure and low leverage.
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Entry into the new Merida market with two projects using a land contribution scheme, reducing working capital needs.
Negative Points
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Affordable entry-level home sales declined 34.1% in Q2 2026 due to the completion of a Tijuana development.
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Gross margin faced pressure from fixed costs in projects not yet generating revenues in the first half.
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Revenues from other real estate projects, including land sales, dropped 12.1% in Q2 2026.
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Short-term debt maturities made up 65% of total debt, requiring active refinancing efforts.
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Inflation-driven cost increases in some projects could not be fully passed on to buyers, impacting margins.
Q & A Highlights
Here are the key highlights from the Q&A session of Consorcio Ara SAB de CV's Q2 2026 earnings call.
Q: What pace of home sales do you expect for the new Tijuana project, and when will the mix of affordable entry-level homes stabilize? A: (Alicia Enriquez Pimentel, Administrative and Financial Director) We expect to title around 400 homes in the Tijuana project during the second half of 2026. We anticipate a recovery in the affordable entry-level segment, projecting it will represent 28% to 30% of our revenues by the end of the year.
Q: What is the initial investment for the two new projects in Merida, and what prompted your entry into that market? A: (Alicia Enriquez Pimentel, Administrative and Financial Director) These are our first projects in Merida, targeting the affordable entry-level segment. They utilize a land contribution joint venture, which is favorable for working capital as we are not buying the land. The master plan includes around 650 units, and the investment is not significant due to this structure.
Q: Can you provide figures on the costs related to houses not yet titled and their impact on next quarter's EBITDA? A: (Alicia Enriquez Pimentel, Administrative and Financial Director) We expect a recovery in gross and operating margins in the second half of the year. Several projects with fixed costs, including those in Tijuana, Puebla, and Morelos, will begin generating revenues. We anticipate a gross margin of around 26% by year-end. In some specific projects, we prioritized sales momentum over fully passing on cost increases, but this is not a significant impact.
Q: Regarding the non-housing land bank, where do you stand on the decision to develop or monetize it? A: (Alicia Enriquez Pimentel, Administrative and Financial Director) We are still working on that assessment, but there are no new updates to share at this moment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
