Cyrela "...Vivaz hidden in plain sight..." (Buy) Costa

Research evidence excerpt

Cyrela "...Vivaz hidden in plain sight..." (Buy) Costa

, which could potentially offset some margin loss in Vivaz, given cost inflation, 12/26E 4.38 4.10 -7 4.75

and in core business, given potential discounts to accelerate finished inventories 12/27E 5.04 5.05 0 5.58

sales. For SG&A, we are keeping it as 15-16% of net revenues for the next years, in 12/28E 5.40 5.67 5 5.64

line with Cyrela's speech. Also, we are reducing financial results in 2026 and 2027 as

result of the changes in Selic, debt and cash generation. Finally, we see net income Tainan Costa

of R$1.8bn in 2026E (-7% vs. old UBSe) and R$2.2bn in 2027E (flat). Analyst

tainan.costa@ubs.com

+55-11-2767 6091

Low-income as the main engine to navigate high interest rates

Ana Julia ZerkowskiDespite the more challenging scenario for the mid-high income segment, we believe

Associate Analyst

the low-income segment (Vivaz) should continue delivering strong results for Cyrela ana-julia.zerkowski@ubs.com

going forward, potentially becoming more relevant. Analyzing Cyrela's performance +55-11-2767 6303

by segment, we observe Vivaz currently achieves the highest LTM ROIC1 (as per UBS

methodology) among the company's segments at 18% in 1Q26 (vs. 12% of the high-

income and 16% of the mid-income - Figure 1), while also printing the best gross

margin at 37% (vs. 32% of high-income and 31% of mid-income - Figure 3). When

comparing Vivaz to its main peers, it reached the second highest LTM ROIC1 (18% in

1Q26), only behind Cury (22%), whereas the first in annualized figures (29% vs. 26%

of Cury). In terms of ROE2, Vivaz surpasses Direcional (43%) in annualized figures,

achieving 48% (Cury at first with 84%). Overall, these metrics provide some

confidence that, in addition to Vivaz posting strong figures relative to Cyrela's