1H 2026 Financial Results: Net Corporate Debt Declines 13%

IPJSC Etalon Group (“Etalon Group” or the “Company”), one of Russia’s largest development and construction companies, announces the publication of its consolidated IFRS financial statements for the six months ended 30 June 2026

Key highlights:

• Financial performance continued to be affected by market conditions, including high market interest rates and cooling demand in the primary housing market. The easing of monetary policy by the Bank of Russia is a positive signal, although the pace of key rate reductions was insufficient to drive a noticeable improvement in financial performance during the reporting period.

• Revenue in the first half of the year decreased by 10%¹ to RUB 54.4 billion. The decline in revenue reflected lower year-on-year sales amid changing demand, as well as a shift in business priorities from expanding the scale of operations to improving cash flows and effectively managing the investment cycle.

• Gross margin in the core residential development segment was 32%. High-margin premium projects accounted for 4% of revenue, which at this stage limits their impact on the consolidated sales margin. As new premium projects are launched and existing projects reach more advanced stages of construction, an increase in the share of the segment could provide a basis for future margin growth for the Group.

• LTM EBITDA amounted to RUB 23.3 billion, up 8% year-on-year, while EBITDA amounted to RUB 9.2 billion, up 28% year-on-year. The Company continues to focus on cost efficiency, with selling, general and administrative (SG&A) expenses declining 9% year-on-year in 1H 2026

• Against the backdrop of lower revenue and persistently high interest expense, the Company recorded a net loss of RUB 13.2 billion.

• Gross debt amounted to RUB 196.3 billion as of 30 June 2026, compared with RUB 222.5 billion as of 31 December 2025 (a decrease of 12%). Net corporate debt amounted to RUB 72.7 billion, compared with RUB 83.9 billion as of 31 December 2025 (a decrease of 13%). The net corporate debt/LTM EBITDA ratio stood at 3.1x as of 30 June 2026

Overview of financial performance in 1H 2026:

Revenue

Consolidated revenue amounted to RUB 54.4 billion. During the reporting period, revenue was affected by a decline in new contract sales, reflecting changes in market demand due to more stringent terms under the family mortgage programme and the reduced affordability of market-rate mortgages. Etalon Group’s new contract sales in 1H 2026 amounted to RUB 47.9 billion (down 23% year-on-year). Temporary spikes in demand ahead of changes to the family mortgage programme were insufficient to drive sales for the period above the level of the previous year.

At the same time, the premium housing segment demonstrated resilience, with Etalon Group’s premium- project sales increasing in 1H 2026 by 117% in terms of floor space and by 141% in monetary terms. Although the margin on premium properties recognised in revenue is high, at approximately 50%, Premium AURIX projects currently account for only 4% of revenue in the residential development segment, limiting their impact on the consolidated margin, which stood at 32% in 1H 2026 As new projects are launched and existing projects reach more advanced stages of construction, an increase in the premium segment’s share of revenue could contribute to margin growth in future periods.

EBITDA

EBITDA amounted to RUB 9.2 billion, compared with RUB 7.2 billion a year earlier, reflecting higher gross profit as well as a 9% reduction in SG&A expenses to RUB 6.6 billion. EBITDA margin was 17%. LTM EBITDA amounted to RUB 23.3 billion, compared with RUB 21.5 billion a year earlier (up 8% year-on-year).

Financial position

Since the beginning of the year, the Company has focused on improving its sales mix and cash collections. Cash collections from new contract sales increased by 27% year-on-year during the reporting period. As a result of the Company’s efforts to improve cash flows, gross debt declined by 12% to RUB 196.3 billion (compared with RUB 222.5 billion as of 31 December 2025). Net corporate debt decreased by 13% to RUB 72.7 billion (compared with RUB 83.9 billion as of 31 December 2025). The net corporate debt/LTM EBITDA ratio stood at 3.1x as of 30 June 2026

1. Comparative data for 2025 were restated due to a change in accounting policy involving a more conservative approach to revenue recognition for contracts with a low percentage of payments.

This press release contains forward-looking statements, which are based on the Company’s current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Although the expectations reflected in these statements are believed to be reasonable, they may be affected by a number of factors that could cause actual results or trends to differ materially, including, but not limited to: market conditions; income; cash flow; profitability; the expected level of investment; the Company’s ability to obtain financing; reduced customer demand; increased competition; unforeseen declines in revenue or profitability; legislative, tax or regulatory changes, including, but not limited to, amendments to regulations governing shared-equity construction; and fluctuations in costs. Investors should not place undue reliance on the estimates and forecasts contained in this release, as the issuer’s actual future results may differ from those forecast for many reasons. All forward-looking statements speak only as of the date on which they are made.

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 9.7 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 42 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 2025 was RUB 318 billion.

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

The Company’s revenue in 2025 amounted to RUB 154 billion, with EBITDA of RUB 31 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.