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Nexity - First-Half 2025 Results - Press release
FIRST-HALF 2025 RESULTS
RETURN TO POSITIVE CURRENT OPERATING PROFIT STARTING IN H1
STRONG MOMENTUM FOR HOMEBUYERS
FURTHER REINFORCEMENT OF FINANCIAL STRUCTURE UNTIL 2028
GUIDANCE FOR 2025 CONFIRMED
Return to positive current operating profit for the Group starting in H1, thanks to actions well underway
Business activity aligned with market trends; continued strong momentum for homebuyers (up 34% in H1)
Share of homebuyers in the sales mix: 35%, up 13 points vs H1 2024
Further reinforcement of financial structure until 2028
Guidance for 2025 confirmed
VÉRONIQUE BÉDAGUE, CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER, COMMENTED:
“Our business activity in the first half of the year – which saw a clear improvement in Q2 – confirms Nexity’s ability to adapt to its market, in particular through continued very strong momentum for homebuyers, up 34% in the half-year period, thanks to the positioning and appeal of our supply.
The transformation we undertook in 2024 is bearing fruit and has enabled us to return to operating profitability starting in H1, thanks in particular to, since 2024, the launch of programmes that are fully aligned with new market conditions and the implementation of measures to reduce the cost base.
We are at an inflection point, and this momentum will be boosted by the scale-up of our new organisation as it extends to all regions. Focused on selective development and profitability, New Nexity will enable us to stay ahead of the curve and return to profitable growth in 2025, while keeping a tight grip on the balance sheet.”
KEY FIGURES FOR THE FIRST HALF OF 2025
(1) Excluding international operations and discontinued operations
(2) Net debt before lease liabilities
Following the sale of the Property Management for Individuals and Nexity Property Management businesses, finalised in 2024, revenue and current operating profit for these businesses in 2024 are presented separately in the tables of this document within a separate “Discontinued operations” line item.
I – PERFORMANCE BY DIVISION
Planning and Development – Residential Real Estate
Supply for sale at end-June 2025 came to 5,279 units, down 20% relative to end-June 2024, due to ongoing selective development and the efforts to recalibrate and adapt supply in 2024. This decline reflects the Group’s adjustment to the new market conditions with a supply for sale/total market ratio at the 2019 level. Supply has increased slightly since Q1 2025 (up 2%), as the appeal of our range has been rebuilt.
Business activity
With the housing market still challenging since the beginning of the year, affected by the impact of the beginnings of a slowdown in building permit issuance and the end of France’s Pinel scheme at year-end 2024, Nexity booked a total of 4,278 reservations over the period, down 15% by volume but with a favourable price effect (down 12% by value).
The backlog stands at €4.0 billion (stable vs Q1 2025), equivalent to 1.6 years’ revenue.
Financial performance in H1 2025
Planning and Development – Commercial Real Estate
With the market still at a cyclical low, as expected, Nexity did not book any significant new orders in the first half of the year (€10 million total).
The Group’s commercial asset diversification initiative is well underway, with strong momentum in calls for proposals, covering a wide range of property types: hotels, cinemas, hospitals, regional centres, etc.
Financial performance in H1 2025
Revenue from Urban Planning and Commercial Real Estate Development came in at €31 million for the period to end-June 2025, down 83% from end-June 2024 as a result of the delivery of large-scale commercial projects (LGC, Reiwa and Carré Invalides) in 2024 (which, for reference, accounted for a total floor area of 175,000 sq.m), and a lack of backlog replenishment over the last two financial years.
Current operating profit/(loss) came to net profit of €1 million.
Services
Services revenue stood at €206 million at end-June 2025, up 12%, driven by Serviced Properties and Distribution.
Financial performance in H1 2025
Current operating profit for the Services business , excluding discontinued operations, came to €14 million
(vs a loss of €1 million in H1 2024). This €15 million improvement was driven mainly by Serviced Properties (margin of 12.5%, up from 6.3% in H1 2024), as well as by a healthy sales recovery and tight control over distribution-related overhead costs.
II – CONSOLIDATED RESULTS – IFRS
Following the decision to align financial communications with IFRS reporting from 1 January 2025 for simplification purposes, the financial indicators and data in this press release are all based on IFRS reporting. As a reminder, Nexity’s financial communications were until 31 December 2024 based on operational reporting, with joint ventures proportionately consolidated.
Revenue
Revenue in the first half of 2025 totalled €1,302 million, down 12% on a like-for-like basis relative to the first half of 2024 (down 18% excluding adjustments for operations disposed of in 2024 and international operations).
Operating profit/(loss)
Current operating profit/(loss) for “New Nexity” excluding international operations and discontinued operations improved by €60 million to net profit of €6 million .
Current operating profit/(loss), adversely affected in the first half of 2024 by the transformation plan and the negative €57 million impact of adjustments to uncompleted supply, returned to positive territory in H1 as a result of the following drivers:
In the first half of the year, non-current operating profit included a €10 million expense related to the ongoing voluntary redundancy scheme (RCC) in connection with streamlining of the brand portfolio outside the Paris region. In H1 2024, it reflected, in particular, the €183 million capital gain on the sale of the PMI business.
Other income statement items
III – FINANCIAL STRUCTURE
The Group’s net debt before lease liabilities totalled €398 million at 30 June 2025. This represented a moderate increase of €68 million by comparison with the rises observed in the past during the first half owing to the seasonality of development activities, with further tight management of the WCR a key factor (see specific section below).
Adjusted bank financing and covenants
In the first half of the year, the Group renegotiated the trajectory of its leverage ratio with its partner banks and Euro PP bondholders to reflect the new real estate cycle and the expected improvement in New Nexity’s profitability.
Working capital requirement
The WCR came to €856 million vs €832 million at 31 December 2024, a moderate increase of €24 million relative to the seasonal peak in WCR traditionally seen during the first half.
IV – CSR: ACCELERATING CITIES’ SUSTAINABILITY TRANSITION
New sustainability transition strategy:
In the first half, Nexity continued to roll out its ambitious environmental strategy. After being upgraded for carbon and biodiversity in 2022, it was reviewed in 2024, giving rise to the “Impact 2030” transition plan with targets out to 2030 for climate change adaptation , water ,
resource use and the circular economy . A dedicated report was published in May 2025:
Link to the 2024 Sustainability Transition Report
Ambitions raised for our three pillars and encouraging H1 results:
The Group’s low-carbon ambition is to achieve a 42% reduction in its carbon impact per square metre delivered between 2019 and 2030, 10% above the level required by France’s RE2020 environmental regulations. This involves working on existing projects, including renovation and urban regeneration operations, and the development of low-carbon real estate, using our technical expertise and our ability to make use of low-impact construction processes. Note that the first projects under the strategic partnership with Maitre Cube, a leader in off-site timber-frame construction, were launched during Q2, building towards the joint goal of 30,000 sq.m in off-site timber-frame construction by 2028.
On average in the first half of the year, the Group’s developments at building permit stage outperformed RE2020 requirements by 10% (2025 limits).
Our 2022 biodiversity policy aimed to establish the Group as a pioneer in measuring the biodiversity of developments, and now the “Impact 2030” plan states that all developments should undergo an environmental assessment, as well as analysis of the rainwater recovery and greywater treatment solutions.
The Group has teamed up with Odalie to roll out Aquapod, a novel solution for greywater treatment within buildings that helps reduce unnecessary use of drinking water.
Our resource management policy is based on accelerating the renovation of existing properties and urban regeneration.
13% of developments analysed by the Commitment Committee over the past 18 months are urban regeneration projects.
For information, Nexity’s 2024 URD includes a Sustainability Statement , in accordance with the Corporate Sustainability Reporting Directive (CSRD), which sets out all the Group’s ESG (Environmental, Social and Governance) priorities and related initiatives: Link to the 2024 Sustainability Statement
V – GOVERNANCE
All resolutions put to the vote at the Shareholders’ Meeting on 22 May were duly adopted, including the following:
The Board of Directors, which met after the Shareholders’ Meeting, also:
In addition, following the resignation of Jérôme Grivet as a director on 16 June 2025 and a review by the Remuneration & Appointments Committee, the Board co-opted Serge Magdeleine (Chief Executive Officer of LCL) for the remainder of the term of office, i.e. until the close of the Annual Shareholders’ Meeting called to approve the financial statements for the year ending 31 December 2027. This decision will be submitted for ratification at the next Shareholders’ Meeting. Serge Magdeleine will also replace Jérôme Grivet as a member of the Audit & Accounts Committee and the Strategy & Investment Committee.
Lastly, La Mondiale indicated that Fabrice Heyriès (CEO of AG2R La Mondiale) would now be its permanent representative, replacing Benoit Courmont with effect from 15 July 2025.
The Board of Directors now consists of 10 directors, including 6 independent directors and 5 women, in line with the recommendations of the AFEP-MEDEF Code.
VII – GUIDAN CE FOR 2025 CONFIRMED
Barring any deterioration in the macroeconomic environment, the guidance issued in February 2025 for financial year 2025 as a whole has been confirmed:
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FINANCIAL CALENDAR & PRACTICAL INFORMATION
A conference call will be held today at 6:30 p.m. (Paris time)
in French, with simultaneous translation into English
The presentation accompanying this conference will be available on the Group’s website from 6:15 p.m. (Paris time).
The conference call will be available on replay at www.nexity.group/en/finance from the following day.
The condensed consolidated interim financial statements were approved by the Board of Directors on 24 July 2025. They were subject to a limited review by the Statutory Auditors.
Disclaimer: The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Chapter 2 of the Universal Registration Document filed with the AMF under number D.25-0267 on 16 April 2025 could have an impact on the Group’s operations and the Company’s ability to achieve its targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets, and makes no commitment or undertaking to update or otherwise revise this information.
NEXITY – LIFE TOGETHER
With €3.5 billion in revenue in 2024, Nexity has a nationwide presence as an urban operator working for urban regeneration and meeting the needs of regions and its clients. Drawing on our dual expertise as a planner/developer and a developer/operator, we are rolling out a regional, multi-product range of services and solutions. As a long-standing proponent of access to housing for all and the leader in our sector when it comes to low-carbon construction, we are dedicated to making new and renovated real estate both affordable and sustainable. In line with our corporate purpose, “Life together”, we endeavour to help build more vibrant, livable cities that are more welcoming and affordable and that respect individuals, the community and the planet. In 2024, Nexity was ranked France’s number-one low-carbon project owner by the BBCA for the sixth year running, came fifth in the customer relations ranking drawn up by
Les Échos and HCG, and was rated 5 out of 5 by Humpact for the fifth year running (in respect of 2023) as being the leader in its sector in terms of development of human capital. Nexity is listed on the SRD, Euronext’s Compartment B and the SBF 120.
CONTACTS:
Anne-Sophie Lanaute – Head of Investor Relations and Financial Communications
+33 (0)6 58 17 24 22 / investorrelations@nexity.fr
Mathieu Mascrez – Analyst, Investor Relations & Financial Communications
+33 (0)6 65 50 08 91 / investorrelations@nexity.fr
Christèle Lion – Media Relations & Social Media Manager
+33(0)6 99 51 14 62 – presse@nexity.fr
ANNEXES
1. Residential Real Estate Development – Quarterly reservations
2. Residential Real Estate Development – Cumulative reservations
3. Breakdown of new home reservations (France) by client
4. Backlog
5. Services
6. Revenue – Quarterly figures
7. Revenue – Half-year figures
8. Operating profit – Half-year figures
9. Consolidated income statement – 30 June 2025
10. Simplified consolidated statement of financial position – 30 June 2025
11. Net debt – 30 June 2025
12. Simplified statement of cash flows – 30 June 2025
13. Capital employed
GLOSSARY
Absorption rate: Available market supply compared to reservations for the last 12 months, expressed in months, for the new homes business in France.
Business potential: The total volume of potential business at any given moment, expressed as a number of units and/or revenue excluding VAT, within future projects in Residential Real Estate Development (new homes, subdivisions and international) as well as Commercial Real Estate Development, validated by the Group’s Committee, in all structuring phases, including the programmes of the Group’s urban regeneration business (Villes & Projets); this business potential includes the Group’s current supply for sale, its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured through options).
Current operating profit: Includes all operating profit items with the exception of items resulting from unusual, abnormal and infrequently occurring transactions. In particular, impairment of goodwill is not included in current operating profit.
Development backlog (or order book): The Group’s already secured future revenue, expressed in euros, for its real estate development businesses (Residential Real Estate Development and Commercial Real Estate Development). The backlog includes reservations for which notarial deeds of sale have not yet been signed and the portion of revenue remaining to be generated on units for which notarial deeds of sale have already been signed (portion remaining to be built).
EBITDA: Defined by Nexity as equal to current operating profit before depreciation, amortisation and impairment of non-current assets, net changes in provisions, share-based payment expenses and the transfer from inventory of borrowing costs directly attributable to property developments, plus dividends received from equity-accounted investees whose operations are an extension of the Group’s business. Depreciation and amortisation includes right-of-use assets calculated in accordance with IFRS 16, together with the impact of neutralising internal margins on disposal of an asset by development companies, followed by take-up of a lease by a Group company.
EBITDA after lease payments: EBITDA net of expenses recorded for lease payments that are restated to reflect the application of IFRS 16 Leases.
Free cash flow: Cash generated by operating activities after taking into account tax paid, financial expenses, repayment of lease liabilities, changes in WCR, dividends received from companies accounted for under the equity method and net investments in operating assets.
Joint ventures: Entities over whose activities the Group has joint control, established by contractual agreement. Most joint ventures are property developments (Residential Real Estate Development and Commercial Real Estate Development) undertaken with another developer (co-developments).
Land bank: The amount corresponding to acquired land development rights for projects in France carried out before obtaining a building permit or, in some cases, planning permissions.
Market share for new homes in France: Number of reservations made by Nexity (retail and bulk sales) divided by the number of reservations (retail and bulk sales) reported by the French Federation of Real Estate Developers (FPI).
Net profit before non-recurring items: Group share of net profit restated for non-recurring items such as change in fair value adjustments in respect of the ORNANE bond issue and items included in non-current operating profit (disposal of significant operations, any goodwill impairment losses, remeasurement of equity-accounted investments following the assumption of control).
Operational reporting: According to IFRS but with joint ventures proportionately consolidated. This presentation is used by management as it better reflects the economic reality of the Group’s business activities.
Order intake – Commercial Real Estate Development: The total of selling prices excluding VAT as stated in definitive agreements for Commercial Real Estate Development projects, expressed in euros for a given period (notarial deeds of sale or development contracts).
Pipeline: Sum of backlog and business potential; may be expressed in months or years of revenue (as for backlog and business potential) based on revenue for the previous 12-month period.
Property Management: Management of residential properties (rentals, brokerage), common areas of apartment buildings (as managing agent on behalf of condominium owners), commercial properties, and services provided to users.
Reservations by value (or expected revenue from reservations) – Residential Real Estate: The net total of selling prices including VAT as stated in reservation agreements for development programmes, expressed in euros for a given period, after deducting all reservations cancelled during the period.
Revenue: Revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.
Serviced Properties: Operation of student residences and flexible workspaces.
1 Current operating profit for “New Nexity” excluding discontinued operations and international operations being managed on a run-off basis
2 Based on data from the French Federation of Real Estate Developers (FPI)
3 On 22 July 2025, the Group signed an exclusive agreement to enter into negotiations for the sale of its subsidiary Accessite
4 Barring any deterioration in the macroeconomic environment
5 Data from the French Federation of Real Estate Developers (FPI)
6 Target commitment margins: retail: 9.5%, bulk sales: 8%, social: 6.5%
7 Total floor area net of additions/disposals
8 Method used to calculate occupancy rate updated at 1 January 2024 to take into account the inflationary environment and the impact of rent indexation; rolling 12-month basis – occupancy rate at mature sites (open for more than 12 months)
9 Excluding international operations and the PMI and NPM activities disposed of in April and October 2024, respectively
10 RCC: Rupture conventionnelle collective (voluntary redundancy scheme)
11 Including financial income and excluding waiver fees
12 Full details of covenants are set out in the 2024 URD
13 Level of the leverage ratio to be reviewed annually: <8.5x at year-end 2025 and <7x at year-end 2026, and exclusion of the ICR
14 All the targets are available in the Sustainability Transition Report
15 Regulations setting out demanding thresholds every three years for reducing carbon emissions across the life cycle of a real estate development (materials and energy)
16 Excluding 3 directors representing the employees
17 Net financial debt target issued at the beginning of 2024: Equivalent to €500 million on an operational reporting basis
18 Maximum net debt of €380 million includes the estimated €45-million impact of the increased stake in Angelotti as part of the exercise of the liquidity window by 30 September
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