Nexity revenue falls 17% to €1.611 billion in nine months; company reaffirms 2026 guidance
Key Facts
Nexity reaffirmed its 2026 financial guidance despite a 17% decline in total revenue in the first nine months, to €1.611 billion from €1.934 billion in the corresponding period of 2025. The company said in its financial statement that the guidance includes improved operating profitability at the “New Nexity” entity during the year, with the leverage ratio falling to less than 3.5 times by 2027 at the latest. Nexity linked the reaffirmation to the absence of any further significant deterioration in market conditions. It also stressed that its plan does not assume a market recovery. The figures come amid continued pressure on the French housing market.
Residential property bookings in France fell to 5,394 units in the nine months, compared with 6,536 units a year earlier, a 17% decline by volume. The value of bookings fell 19% to €1.147 billion, from €1.419 billion in the corresponding period. In retail sales, the company recorded 3,094 bookings, 10% below the year-earlier level. Nexity said the market contracted 14% over eight months, according to Adequation data, and that its sales trend appeared stronger than the market in the third quarter. On the results call, the chief executive said the company's retail sales fell about 12% in the third quarter, compared with a market decline of between 20% and 25%.
Performance varied across the company's businesses: revenue from planning and development fell 20% to €1.295 billion, while revenue from operating activities rose 2% to €232 million. The order book stood at €3.5 billion at the end of September, equivalent to 1.6 years of revenue. In wholesale sales, the company recorded 2,300 units in the nine months, a decline of 26%. It said on the call that this type of sale is typically concentrated in the fourth quarter. For comparison, wholesale sales registrations totaled 3,800 units in the fourth quarter of the previous year.
Nexity said reaffirming its guidance did not rely on an assumption of a market recovery, but on improving margins and implementing a €100 million cost-saving plan, alongside project selection and financial discipline. The company attributed market pressure to annual inflation of 3% in September and the French 10-year government bond yield reaching about 5% when the statement was issued. It said inflation and rising long-term interest rates are weighing on household purchasing power and borrowing capacity. On the results call, the chief executive described 2026 and 2027 as very weak years in the market cycle. She added that 2028 would be a transition year and that the company does not expect a recovery before 2029 or 2030.
On financing and its portfolio, the company announced it had begun a review of its activities outside property development and early negotiations with its banking group to extend the credit facility and project completion guarantees. The existing facility totals €625 million and matures in February 2028, while the current balance of project completion guarantees is €1.4 billion. Nexity expected to complete the agreement in the weeks following the statement. The financing path is linked to the company's guidance to reduce leverage to less than 3.5 times by 2027 at the latest, alongside improved operating profitability during 2026. The company set the release of its 2026 full-year results for 24 February 2027 after market close, with its annual general meeting scheduled for 20 May 2027.