Brazil Homebuilding: Brazil Equity Conference Takeaways

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Brazil Homebuilding: Brazil Equity Conference Takeaways

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17 Jun 2026 19:28:05 ET │ 15 pages

Brazil Homebuilding

Brazil Equity Conference Takeaways

CITI’S TAKE

We hosted Citi’s 18th Annual Brazil Equity Conference, where the clear

highlight was the resurgence of low-income homebuilders as a relative

safe haven and we are seeing companies and local investors becoming

more optimistic about the sector again. Companies are guiding positively

for 2Q26 and a potential more benign cost backdrop than previously Andre Mazini, CFAAC

embedded in April/May budgets, supported by easing conflict-related +55-11-4009-2017

pressures. This dynamic lowers the need for additional price pass-through andre.mazini@citi.com

in 2H26 and mitigates risks to gross margins and sales speed. The sector

Piero Trotta

tends to be a hedge against an election scenario, as a new Lula

+55-11-4009-7781

administration would likely be positive for the companies, while an piero.trotta@citi.com

alternative candidate would not necessarily be negative. We see

valuations as attractive, at around 6x P/E for 2027. In this context, low- Kiepher Kennedy

income players stand out for stronger demand visibility and more resilient +55-11-4009-2641

operating trends vs mid/high-income companies. kiepher.kennedy@citi.com

Cury

Demand remains resilient despite a slightly moderation in sales speed following price

increases, with YTD sales showing a solid pace. Launch activity remains strong,

supported by superior land quality in premium locations. Gross margins are expected

to remain robust at 39–40%, with management signaling no material change in

margin expectations. Management believes the worst of construction cost pressure

is likely behind, and there could even be some room for project-level savings if