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 12 months ended 31 December 2025.
Thanks to strong sales and a threefold increase in delivery volumes during the reporting period, the Group’s revenue rose 17% year-on-year to RUB 154 billion (30% CAGR for 2023–2025).
Despite a challenging market environment, the Company’s cost optimisation efforts reduced selling, general and administrative (SG&A) expenses as a percentage of revenue by 1.1 percentage points to 10%. Cash flows benefited from the sale of completed office properties and non-core assets. At the same time, the Group’s leverage, linked to business expansion and obligations arising from investments in land bank development in 2021–2023 with long project timelines (including Shagal in Moscow, Solnechniy in Ekaterinburg and several regional projects), continues to weigh on net profit amid extremely high interest rates.
FY 2025 financial highlights:
· Consolidated revenue reached RUB 153.6 billion, up 17% year-on-year (30% CAGR for 2023–2025), driven by the following factors:
- an increase in sales to RUB 153.5 billion, 5% higher than in 2024 (21% CAGR for 2023–2025), despite reduced government support for mortgage demand;
- robust construction activity and deliveries, with 483 ths sqm of NSA delivered in 2025 (3x year-on-year).
· Revenue in the residential development reached RUB 128 billion, up 13% year-on-year (+28% CAGR for 2023–2025), supported by an effective sales strategy and a 19% year-on-year increase in average selling prices (19% CAGR for 2023–2025).
· Adjusted[1] gross profit reached RUB 45.1 billion (up 9% year-on-year; 23% CAGR for 2023–2025), with a gross margin of 30%, reflecting changes in the weightings of geographic segments in revenue. The share of projects in St Petersburg declined due to a reduced inventory of completed projects, sales of which are fully recognised in revenue, and their gradual replacement by new phases of projects under construction, alongside the still limited contribution of high-margin premium projects such as LDM and Mariinka Deluxe. The Group’s strategy provides for further expansion in the business- and premium-class segments in both Moscow and St Petersburg and an increase in the share of higher-priced projects in revenue.
· Measures to improve operational efficiency reduced SG&A expenses as a percentage of revenue by 1.1 p.p. to 10%.
· Adjusted1 EBITDA reached RUB 30.6 billion (up 11% year-on-year; 30% CAGR for 2023–2025), with an adjusted EBITDA margin of 20%.
· Net loss of RUB 22.3 billion reflects accounting policies requiring full recognition of accrued interest within the reporting period, as well as increased interest expense on corporate debt raised in previous years amid peak key interest rates. Investments made in previous years in expanding the land bank for large-scale development projects with timelines extending to 2039 provide a foundation for future profitability. These projects – in particular the planned launch of phases 5–9 of the Shagal project (650 ths sqm) by 2030, around 1 mln sqm of new space in the Solnechniy district by 2039, as well as new launches at other Group projects – will support cash flow generation and revenue recognition in future periods.
· The ratio of net corporate debt to adjusted EBITDA is 2.7x.
· Escrow account balances totalled RUB 104.2 billion, with escrow coverage of project debt at 78%, exceeding the industry average of 70%.[2]
Against the backdrop of a prolonged period of tight monetary policy, management’s focus during the reporting period was on improving operational efficiency and financial resilience, as well as sustaining the Group’s strong competitive position over the long term.
In addition to maintaining stable sales and revenue performance, the Company reduced SG&A expenses as a percentage of revenue by 1.1 percentage points to 10% thanks to its focus on operational efficiency. At the same time, the investment stage of business development and current market conditions continued to weigh on profitability, resulting in a 1.0 percentage point decline in EBITDA margin from 21% to 20% and an increase in corporate debt servicing costs.
Thanks to an effective project execution strategy enabling the Company to maintain balanced escrow accounts, the Group’s average project debt servicing rate stood at 7.65% at year-end, compared with an industry average of 10.2%, while the ratio of net corporate debt to adjusted EBITDA remained at 2.7x.
During the reporting period, the Company made progress in obtaining urban planning and permitting documents to support the further development of its portfolio. In total, the Group obtained construction permits for 1.3 mln sqm in 2025. In addition, the Moscow Urban Planning and Land Commission approved preliminary technical and economic parameters for prospective projects with a total area of 1 mln sqm, including properties from the premium portfolio acquired in 2025 as part of JSC Biznes-Nedvizhimost. Approval of these parameters for business- and premium-class projects in Moscow greatly increases the market value of the respective land plots, expands the pipeline of launch-ready projects in the capital and creates additional opportunities to bolster financial performance in 2026–2028.
Another important factor supporting project economics is participation in the Moscow Government’s job creation. In 2025, the Company prepared a number of projects eligible for this incentive, which will offset fees associated with changes in permitted land use for the Group’s residential projects in Moscow.
In the medium term, key drivers of the Group’s financial performance and profitability will include the launch of new projects in the business and premium segments, continued efforts to improve cost efficiency, as well as the Bank of Russia’s gradual easing of monetary policy and an improvement in market demand conditions.
[1] Excluding the one-off sale of a standalone commercial property and adjusted for gains from the disposal of investment property.
[2] According to the Dom.RF report “Housing Construction in Russia”: https://xn--d1aqf.xn--p1ai/upload/iblock/7f0/1ka1r9qug20h5u5p6p12oxwba505va6z.pdf
This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.
IR Team
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.