Nexity - First-Half 2025 Results - Press release
FIRST-HALF 2025 RESULTS
RETURN TO POSITIVE CURRENT OPERATING PROFIT1 STARTING IN H1
STRONG MOMENTUM FOR HOMEBUYERS
FURTHER REINFORCEMENT OF FINANCIAL STRUCTURE UNTIL 2028
GUIDANCE FOR 2025 CONFIRMED
Return to positive current operating profit1 for the Group starting in H1, thanks to actions well underway
Margins restored for Urban Planning and Residential Real Estate Development as of 30 June
Improved profitability for Services, driven in particular by the Serviced Properties business (margin: 12.5%)
Progress ahead of schedule on the cost-savings plan for €100 million in savings by 2026 with a level of savings achieved that will be higher than initially expected for full-year 2025 (92% achieved vs 75% initially announced), reflecting the rigorous execution and effectiveness of actions taken
Current operating profit1 for the Group positive in H1 2025 at €6 million, vs -€54 million in H1 2024
Business activity aligned with market trends; continued strong momentum for homebuyers (up 34% in H1)
Supply for sale aligned with our market: 5,279 units, equating to a supply/total market ratio2 identical to its 2019 level, currently being replenished (up 2% vs Q1 2025); absorption rate improving (5 months), thanks to the recalibration launched in 2024 and the selective development approach; virtually no unsold completed homes (~100 units)
Product mix aligned with demand: Strong momentum for homebuyers, up 45% in Q2 (with a 50% increase in first-time homebuyers) after being up 23% in Q1, driven by an appealing price/product range and financing aligned with client purchasing power, as well as the first effects of theextension of the PTZ interest-free loan scheme
Share of homebuyers in the sales mix: 35%, up 13 points vs H1 2024
Positive price effect (down 6% by value vs down 13% by volume for retail sales) reflecting healthy pricing levels achieved after the 2024 recalibration
Strong recovery in Subdivisions (up 56% to ~700 units) driven by the extension of the PTZ interest-free loan scheme to single-family homes
Ongoing growth in our Serviced Properties business: Revenue up 13%
Further reinforcement of financial structure until 2028
Repayment of bond maturities in H1 totalling €321 million, primarily using available cash thanks to rigorous financial management
Financing secured until 2028 through a new series of leverage ratios adapted to the new real estate cycle, with unanimous support from partner banks and Euro PP bondholders
Borrowing costs down (-€10 million in H1)
Ongoing deleveraging: Close control over WCR (WCR down €19 million for Urban Planning and Residential Real Estate Development despite the usual seasonal spike in H1) and finalisation of the plan to dispose of the Property Management businesses3
Guidance for 2025 confirmed4
Return to operational profitability: Current operating profit1 positive
Tight grip on the balance sheet maintained: IFRS net debt less than €380 million
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
Business activity, France
H1 2024
H1 2025
Change vs H1 2024
Reservations: Residential Real Estate
Volume
5,060 units
4,278 units
-15%
Value
€1,060m
€930m
-12%
Q1 2025
H1 2025
Change vs March 2025
Backlog: Planning and DevelopmentResidential Real Estate DevelopmentCommercial Real Estate Development
€4bn€4bn€41m
€4bn€4bn€26m
-1%Stable-37%
As announced when the 2024 full-year results were released, financial reporting has been aligned with IFRS since 1 January 2025.
Financial results (in €m)
H1 2024
H1 2025
Change vs H1 2024
Revenue, "New Nexity" (1)
1,482
1,301
-12%
Current operating profit, "New Nexity" (1)
(54)
6
+€60m
Operating margin (as % of revenue)
N/A
0.5%
N/A
Group share of net profitO/w: Capital gain on disposal
45183
(44)-
€(89)m-
Net debt (2)
31 Dec. 2024
30 June 2025
Change vs Dec. 2024
330
398
+€68m
(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 ratio5 at the 2019 level. Supply has increased slightly since Q1 2025 (up 2%), as the appeal of our range has been rebuilt.
The absorption rate improved to 5 months (identical to that observed in 2019), securing supply rotation and resulting in virtually no unsold completed homes (~100 units).
Supply for sale under construction accounted for 47% of total supply, with more than 85% of projects scheduled to be delivered in more than 6 months and 61% in more than one year.
Lastly, 88% of supply for sale is now located in supply-constrained areas, and 100% is eligible for the PTZ interest-free loan since 1 April.
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).
Retail reservations recorded in the first half of the year came to 2,461 units (vs 2,823 units in H1 2024), a 13% decline in volume, with a clear improvement in Q2 (down 2%, vs down 23% in Q1), and a 6% decline in value, demonstrating healthy pricing levels after our 2024 recalibration. This trend reflects the following two trends:
Decline in individual investors, as expected, due in particular to the end of France's Pinel scheme (which, for reference, accounted for 80% of individual investors and 18% of total reservations in 2024).
Strong momentum among homebuyers, with reservations up 34% in H1, including a 45% increase in Q2 (up 50% for first-time homebuyers), driven in particular by:
The effectiveness of the product offering and marketing campaigns incorporating innovative and attractive financing solutions aimed at helping first-time buyers and young people access loans in order to become homeowners, in particular by aligning monthly mortgage repayments as far as possible with what they used to pay in rent.
Good momentum in sales launches: 41 launches in Q2 and highly satisfactory reservation rates, reflecting the appeal of our range.
And of course, improved financing conditions, with mortgage rates stabilising at around 3.1% (equating to close to an 11% boost in purchasing power for our clients in one year) and the extension of the PTZ interest-free loan scheme across France.
Bulk sales, which are not linear over the year, accounted for 1,817 reservations over the period. Note that a deal was signed in late June for 1,020 units with CDC Habitat, with these units to be recorded in reservations as final permits are awarded.
In addition, the urban planning business accounted for 684 reservations for subdivisions in the first half of the year, up 56%, reflecting momentum amplified by the extension of the PTZ interest-free loan scheme to single-family homes starting 1 April.
The backlog stands at €4.0 billion (stable vs Q1 2025), equivalent to 1.6 years' revenue.
The level secured by sales for which notarial deeds of sale were signed is 46%.
This volume does not yet include the initial contributions to the backlog of the Carrefour partnership, the first two building permits for which were filed in Q4 2024 and are currently being processed (it should be noted that revenue at termination over approximately the next ten years is estimated at more than €2 billion).
Financial performance in H1 2025
(In millions of euros)
H1 2024
H1 2025
Change
Revenue
1,117
1,064
-5%
Current operating profit/(loss)
(56)
4
+€60m
Margin (as % of revenue)
-5.0%
0.3%
N/A
Revenue declined by 5% to €1,064 million, primarily reflecting the decline in business activity from projects underway.
Current operating profit/(loss) improved by €60 million to net profit of €4 million (vs a net loss of €56 million in H1 2024), reflecting as expected the process of restoring margins from H1 2025 onwards. This reflected the following in particular:
65% deriving from the dilutive margins on projects recalibrated in 2024 with a declining contribution under the percentage-of-completion method;
Partially offset by the rising contribution under the percentage-of-completion method (35% at end-June) from project launches aligned with the new market conditions and with target commitment margins6 since the beginning of 2024.
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
(In millions of euros)
H1 2024
H1 2025
Change
Revenue
182
31
-83%
Current operating profit/(loss)
8
1
-85%
Margin (as % of revenue)
4.2%
3.6%
-0.51 pts
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
(In millions of euros, excluding discontinued operations)
H1 2024
H1 2025
Change
Revenue
183
206
+12%
Serviced Properties
128
145
+13%
Distribution
44
51
+17%
Property Management
11
9
-19%
Current operating profit/(loss)
(1)
14
+€15m
Serviced Properties
8
18
+€10m
Distribution
(10)
(4)
+€6m
Property Management
1
0
€(1)m
Margin (as % of revenue)
-0.5%
6.8%
+7.3 pts
The Serviced Properties business (student residences, coworking spaces) posted €145 million in revenue (up 13%), once again driven by:
The growth momentum in the portfolio of coworking businesses (11 new sites in 2024 and 1 new site in 2025, for a total of nearly 160,000 sq.m under management7)
The opening of three new student residences over the past year, lifting the total in operation to over 17,000 units in 54 cities.
And occupancy rates remaining high for student residences (97%) and coworking spaces (86%8).
Revenue from Distribution activities rose 17%, reflecting the business recovery that began in 2024 and continued into 2025 and also strong momentum in the signing of deeds during the first six months of the year.
Following the sales finalised in 2024 of PMI, NPM and Bien'ici, revenue from Property Management was €9 million.
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.
(In millions of euros)
H1 2024
H1 2025
Change 2025/2024
Consolidated revenue
1,581
1,302
-18%
Current operating profit/(loss), New Nexity
(54)
6
+€60m
Current operating profit, International operations
(16)
(6)
€10m
Current operating profit, Discontinued operations
6
-
N/A
Current operating profit/(loss)
(64)
0
+€64m
Non-current operating profit/(loss)
117
(10)
N/A
Operating profit/(loss)
53
(10)
€(63)m
Share of profit/(loss) from equity-accounted investments
(0)
2
+€2m
Operating profit/(loss) after share of profit/(loss) from equity-accounted investments
52
(9)
€(61)m
Net financial income/(expense)
(52)
(42)
+€10m
Income tax income/(expense)
44
13
€(30)m
Share of profit/(loss) from equity-accounted investments
(2)
(3)
€(1)m
Net profit/(loss)
42
(40)
€(83)m
Non-controlling interests
3
(4)
€(7)m
Net profit/(loss) attributable to equity holders of the parent company
45
(44)
€(89)m
Revenue
(In millions of euros)
H1 2024
H1 2025
Change 2025/2024
Planning and Development
1,299
1,095
-16%
Residential Real Estate
1,117
1,064
-5%
Commercial Real Estate
182
31
-83%
Services
183
206
+12%
Serviced Properties
128
145
+13%
Distribution
44
51
+17%
Property Management
11
9
-19%
Other Activities
-
-
N/A
Revenue, New Nexity
1,482
1,301
-12%
Revenue from international operations
3
0
N/A
Revenue from discontinued operations
96
-
N/A
Revenue
1,581
1,302
-18%
Revenue in the first half of 2025 totalled €1,302 million, down 12% on a like-for-like basis9 relative to the first half of 2024 (down 18% excluding adjustments for operations disposed of in 2024 and international operations).
Revenue from Planning and Development decreased 16%, chiefly as a result of the slowdown in business activity from projects underway and the 10-point decline in the contribution from the Commercial business (down 83% by value). This fall arose from a base effect linked to completion of the major commercial projects delivered in 2024.
Revenue from Services, excluding discontinued operations, rose 12% to €206 million, with a strong performance in Serviced Properties (up 13%) and Distribution (up 17%).
Operating profit/(loss)
H1 2024
H1 2025
(In millions of euros)
Operating profit/(loss)
Margin
Operating profit/(loss)
Margin
Planning and Development
(48)
-3.7%
5
0.4%
Residential Real Estate
(56)
-5.0%
4
0.3%
Commercial Real Estate (1)
8
4.2%
1
3.6%
Services
(1)
-0.5%
14
6.8%
Other Activities
(5)
N/A
(13)
N/A
Current operating profit/(loss), New Nexity
(54)
-3.7%
6
0.5%
Current operating profit, International operations (2)
(16)
N/A
(6)
N/A
Current operating profit, Discontinued operations (3)
6
N/A
-
N/A
Current operating profit/(loss)
(64)
-4.1%
0
0.0%
Non-current operating profit/(loss) (4)
117
N/A
(10)
N/A
Operating profit/(loss)
53
3.3%
(10)
-0.8%
(1) NCG now included in Commercial Real Estate(Previously shown under Services)
(2) Including capital gains on disposal and restructuring
(3) Discontinued operations: Property Management for Individuals and NPM in 2024
(4) Including capital gains on disposal of Property Management for Individuals and NPM in 2024
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:
Margins restored for the Urban Planning and Residential Real Estate Development businesses starting 30 June (see dedicated section)
Improved profitability for Services, driven in particular by the Serviced Properties business (margin: 12.5%)
Initial benefits of the plan to save €100 million by 2026 with a positive impact of €20 million in H1. The impact on 2025 is now estimated at €40 million, exceeding the benefits originally anticipated for full-year 2025 (92% expected vs 75% initially announced) and demonstrating the rigorous execution and effectiveness of actions taken.
In the first half of the year, non-current operating profit included a €10 million expense related to the ongoing voluntary redundancy scheme (RCC)10 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
The net financial expense totalled €42 million at end-June 2025 vs €52 million at end-June 2024. This reflected the following in particular:
Cost of borrowing: a net expense of €18 million, representing an €11 million improvement on the H1 2024 level, owing to the decline in gross debt and the resizing of the corporate credit facility in early 2025 in order to adjust it to New Nexity's requirements. The average cost of borrowing stood at 3.2%11 at end-June 2025, compared with 3.5% in 2024.
Interest expense on lease liabilities: a net expense of €17 million, up a very modest €1 million owing to the lease of Reiwa (our new head office) and growth in our operating subsidiaries' portfolio.
Other financial income and expenses: a net expense of €7 million, stable with respect to H1 2024.
Tax income came to €14 million at end-June (versus income of €44 million at 30 June 2024), arising from the tax receivable recognised in respect of the loss for the financial year. The current effective tax rate (excluding the CVAE) was 26% at end-June 2025.
The share of profit/(loss) from equity-accounted investments does not call for any particular comments. As a reminder, Nexity sold in advance on 14 February 2025 its entire holding in Ægide Domitys, with no effect on the 2024 or 2025 financial performance.
The Group share of net profit/(loss) amounted to a net loss of €44 million in H1 2025 vs net profit of €45 million in H1 2024. In H1 2024, it reflected the €183 million capital gain on the sale of the PMI business.
III, FINANCIAL STRUCTURE
Debt and liquidity
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).
(In millions of euros)
31 Dec. 2024
30 June 2025
Change 2025/2024
Bond issues and other
796
496
(300)
Bank borrowings and commercial paper
300
507
+207
Gross debt
1,096
1,003
(93)
Net cash and cash equivalents
(766)
(605)
+161
Net financial debt before lease liabilities
330
398
+68
Bond repayments of €321 million in the first half: On 2 March 2025, the Group repaid the entire 2018 ORNANE bond, for a total of €200 million. It also repaid the 8-year €121 million tranche (due June 2025 in line with the published documentation) of its Euro PP bond. These two repayments were predominantly made using the Group's cash.
Fixed-rate debt and debt covered by interest rate hedges constitutes 70% of gross debt, thereby limiting the Group's exposure to rising interest rates.
The Group's liquidity was solid at end-June, totalling €528 million: The available cash at 30 June 2025 includes the €435 million undrawn portion of the credit facility.
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.
It should be noted that in Q1, the Group reviewed its medium-term bank financing, with a new credit facility adjusted to €625 million, and revised the leverage ratio included in the covenants as follows: <8.5x at year-end 2025, <7x at year-end 2026 and ≤3.5x at year-end 2027.
The next test period has been pushed back to the end of 2025, to be reviewed annually until the credit facility matures in February 2028, and the interest coverage ratio (ICR) has been excluded from covenants.12
The Euro PP bondholders unanimously voted in favour of the changes proposed during the consultation process regarding, in particular, the covenants described above for the Euro PP 2026 and Euro PP 2027 tranches.13
Working capital requirement
(In millions of euros)
31 Dec. 2024
30 June 2025
Change
