IRSA Inversiones y Representaciones S.A. Reports FY2025 Results, Net Income Up 508% YOY

IRSA Inversiones y Representaciones S.A. reported a net income of ARS 196,118 million for FY 2025, compared to a loss of ARS 32,141 million in the previous year. Revenues increased by 2.3% and Rental Adjusted EBITDA reached ARS 234,697 million, a 2% decrease from the previous year. The company acquired Terrazas de Mayo shopping center and started construction of a new open-air shopping mall in La Plata.

IRSA Inversiones y Representaciones S.A. (IRSA) has reported a significant turnaround for fiscal year 2025, posting a net income of ARS 196,118 million compared to a loss of ARS 32,141 million in the previous year. This strong recovery was driven by improvements across its portfolio, with revenues increasing by 2.3% and Rental Adjusted EBITDA reaching ARS 234,697 million. The company's shopping malls, offices, and hotels segments contributed to this growth, with the shopping malls segment seeing a 2% decrease in Rental Adjusted EBITDA from the previous year [1].

IRSA's financial performance was bolstered by a 2.3% increase in revenues and a 2% decrease in Rental Adjusted EBITDA, indicating a stable and resilient cash-generating capability. The company's shopping malls segment saw a 8% increase in revenues and a 10% increase in Adjusted EBITDA, with a portfolio occupancy rate of nearly 98%. Despite a 2.8% decline in tenant sales for the full year, the company experienced a second-half recovery, demonstrating the segment's resilience [1].

In addition to its operational improvements, IRSA has re-entered international debt markets by issuing USD 300 million in Series XXIV Notes with a 10-year term. This move restores funding flexibility and capital market access for the company. The company also completed acquisitions and development projects, including the acquisition of the Terrazas de Mayo shopping center and the initial sales for Ramblas del Plata, adding approximately 111,000 square meters of saleable space and investing an estimated USD 81 million [1].

IRSA's capital structure includes a market capitalization of approximately USD 1,062 million as of June 30, 2025, with outstanding shares of 762,358,019. Cresud is the majority shareholder, holding 412,158,780 shares, which represents 54.06% of the company's shares. There are 60,964,074 warrants outstanding, which, if fully exercised, could increase the number of issued shares to 852,857,373 [1].

In conclusion, IRSA's strong earnings recovery and stable mall fundamentals significantly improve its operating outlook. The company's access to international debt markets and strategic acquisitions further enhance its financial position. Financial analysts have a positive outlook on the company's performance, while corporate governance experts note the concentrated ownership structure and potential for modest dilution from outstanding warrants.

References:
[1] https://www.stocktitan.net/sec-filings/IRS/6-k-irsa-inversiones-y-representaciones-s-a-global-current-report-for-6d2aa57656ed.html