Helbor's Balancing Act In Q3: Bigger Deliveries, Slower Sales, And A Push To Deleverage

2025-10-15 03:18:34

(MENAFN- The Rio Times) Helbor Participações (HBOR3) is trying to win investors over the old-fashioned way: by turning construction into cash.

Its preliminary third-quarter 2025 update shows a company moving more finished projects to customers while tightening its balance sheet, even as demand cools at the margin.

From July to September, gross sales reached R$ 479 million ($90 million), down 3.1% from a year earlier. The sell-through rate was 13%, versus 16% in the same quarter of 2024, and net revenue came in at R$ 362 million ($68 million), off 11%.

Contract cancellations rose to R$ 117 million ($22 million), a clear headwind. Against that, deliveries jumped to R$ 731 million ($138 million), a 63% increase that should support free cash flow.

Helbor also launched three projects totaling R$ 497 million ($94 million) in potential sales value: Patteo Mogilar, Collage Bela Vista and Stay Moema.

Management is leaning into simpler, near-term cash wins-selling completed inventory and shedding non-core land-announcing two plot divestments in São Paulo and Mato Grosso do Sul for R$ 21 million ($4 million).
Helbor balances cash gains and weak sales
The stock reflected that push–pull on Wednesday, trading around R$ 3.17 ($0.60). Analysts are neutral but note the shares change hands at roughly 0.3 times tangible book value-a level that suggests investors are skeptical about how quickly the company can convert assets into cash and keep cancellations contained.

The story behind the story is straightforward. Brazilian homebuilders live and die by three levers: how much they deliver (cash generation), how fast they sell (VSO), and how steady those sales are (low cancellations).

Helbor 's quarter tells a mixed but intelligible tale: cash generation is improving thanks to heavier deliveries and asset sales; sales velocity softened; cancellations rose. For investors inside and outside Brazil, the question is whether the cash engine can outrun the drag from slower demand.

What to watch next: free cash flow and net debt trends, the sales pace of the newest launches, and whether cancellations stabilize. Helbor plans to report full Q3 results on November 11, 2025.

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