Etalon Group Announces 1H 2025 Financial Results: Revenue Up 35%, Gross Profit 16%

IPJSC ETALON GROUP (“Etalon Group”), one of Russia’s largest development and construction companies, announces the publication of its consolidated IFRS financial statements for the first half of the year ended 30 June 2025.

The Company continued to deliver strong operating performance in the face of macroeconomic headwinds. In 1H 2025, Etalon Group reported record revenue and solid growth in key financial metrics despite a tight monetary policy, which was a significant drag on net profit due to high debt servicing costs.

1H 2025 financial highlights:

• Consolidated revenue increased by 35% to a record RUB 77.4 billion.

• Revenue from the residential development segment reached RUB 66.2 billion, up 33% year-on-year. Revenue from development projects in Moscow and St Petersburg increased by 24% to RUB 50.8 billion, while revenue from development projects in other regions grew by 78% to RUB 15.3 billion.

• Consolidated gross profit for the period increased by 7%¹ year-on-year to RUB 20.9 billion. Adjusted² gross profit reached RUB 23.1 billion (up 18% year-on-year).

• Gross profit in the residential development segment rose 16% to RUB 21.2 billion, while the segment’s gross margin was 32%.

• Thanks to measures to improve operating efficiency, selling, general and administrative (SG&A) expenses as a share of revenue decreased by 2.2 p.p. to 9.4%.

• EBITDA increased by 5%¹ to RUB 14.1 billion, while EBITDA margin was 18%. Adjusted² EBITDA reached RUB 16.3 billion (up 22% year-on-year), with an adjusted margin of 21.5%.

• Net loss of RUB 8.9 billion was associated with high debt servicing costs following a sharp increase in the key rate from 16% in 1H 2024 to 21% in 1H 2025, as well as the introduction of macroprudential surcharges.

• The ratio of net corporate debt to EBITDA remained stable at 2.5x, within the target range of up to 3x.

• The amount of funds in escrow accounts amounted to RUB 109 billion, sufficient to cover 90% of project debt. As of the end of the first half of the year, the average project debt servicing rate was 7.7%, according to management reports, versus an industry average of 10.6%.³

Commenting on the Company’s 1H 2025 financial results, Etalon Group CFO Ilya Kosolapov said:

“Our strategy of regional diversification and expansion into the premium segment has enabled us to sustain high growth rates in a rapidly changing market. Consolidated revenue increased by 35% to RUB 77 billion, the best half-year result in the Company’s history. In our core residential development segment, revenue reached RUB 66 billion, an increase of 33% year-on-year. A twofold acceleration in the pace of construction, which enabled faster revenue recognition, made a significant contribution to financial performance. Despite the rising cost of materials and labour, gross profit in the segment grew by 16% to RUB 21.2 billion, with a margin of over 32%, in line with our strategic targets.

“It is important to note further improvements in internal efficiency: overhead expenses as a share of revenue decreased by 2.2 p.p., supporting an increase in EBITDA to RUB 14 billion, despite the impact of the one-off recognition of a reserve recovery from the sale of a commercial property. Total SG&A expenses amounted to 9.4%, beating our target of 10%, which we expected to achieve by 2026.

“Our broad geographic footprint and operations in various market segments have kept our reliance on mortgages at a reasonable level and prepared us for a sharp reduction in subsidised mortgage programmes, a key advantage for us in a turbulent market that enabled us to deliver strong double-digit revenue growth (up 35%). Nevertheless, the key rate continues to weigh on net profit through higher debt servicing costs, making debt and liquidity management our top priority. In the first half of the year, we maintained our core leverage ratio at a stable level while continuing to develop our project portfolio. Over the past year, we kept our ratio of net corporate debt to EBITDA unchanged at the level of 2.5x, within our target range of 2x–3x. Moreover, we are also committed to reducing our debt position, and we plan to use the proceeds from the sale of several major commercial properties for debt repayment.

“Our balanced development strategy, with an emphasis on portfolio diversification and the segments of the real estate market that are most resilient to demand shifts, together with debt management have enabled us to navigate this challenging period without scaling back our business. The foundation that we are currently building by balancing our land bank and maintaining our market positioning will provide a new impetus for business growth, and further easing of monetary policy will lend additional support to our financial performance.”

¹ Impacted by the one-off recognition of a reserve recovery in other income following the sale of a commercial property.

² Excluding the one-off sale of a commercial property.

³ According to Dom.rf.

This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.

About Etalon Group

Founded in 1987, today Etalon Group is one of the leading nationwide players in Russia’s development and housing construction sector. The Company develops real estate projects for the middle class in Moscow, the Moscow region and St Petersburg. The Company has been actively developing in eight regions across Russia since 2021, with large-scale projects under way in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With 38 years of successful operations and ongoing regional expansion, the Company remains one of the largest players in the Russian real estate market. Since its foundation, Etalon Group has delivered 9.2 mln sqm of real estate.

Thanks to its integrated business model, Etalon Group creates added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs more than 6,000 people.

Etalon Group’s total assets comprise 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 5.5 million sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2024 was RUB 305 billion.

In 2025, Etalon Group’s new contract sales totalled 671 ths sqm, or RUB 153.5 billion.

The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.

Etalon Group shares are traded on the Moscow Exchange (ticker ETLN) and have been included in the Level 2 quotation list since September 2025.