CALI3

Construtora Adolpho Lindenberg S.A., issuer of CALI3 shares traded on B3, was incorporated on October 25, 1966 and obtained its CVM registration on July 20, 1977. With a declared track record of more than 68 years operating in the construction sector, the company has delivered around 500 projects across Brazil, consolidating a long-standing presence in the Brazilian real estate market. Throughout its history, it has gone through distinct phases of capital structure and control, including an association with the developer Lindencorp starting in 2004 and the acquisition of its control in 2008 by LDI Desenvolvimento Imobiliário S.A., the holding company that controls Lindencorp. In 2019, LDI transferred its stake to Lindenberg Investimentos Ltda., with no change in indirect control, which remained in the hands of Adolpho Lindenberg Filho and Flávio Haddad Buazar.

The corporate purpose of Construtora Adolpho Lindenberg and its subsidiaries covers the residential real estate value chain, including the purchase and sale of properties, leasing, subdivision or land development, real estate development, construction of properties for sale, and equity interests in other companies. In practice, the issuer’s activities are organized around two main pillars: the provision of services under general contracting or construction management – which involves project management, execution and monitoring of services, and technical assistance – and real estate development and incorporation, focused on selling mid- and high-end residential units. Revenue essentially comes from the construction and management of civil works and from the sale of individual units, reflecting the typical profile of a residential developer and builder geared toward higher-income segments.

From an operational standpoint, the company structures its activities into two reportable segments: property sales and construction services, which are used for internal analysis and management purposes. Construtora Adolpho Lindenberg operates exclusively in Brazil, with no revenue from abroad, and states that, given the nature of its business, there is no material concentration of revenue in specific clients. Buyers of residential units in the projects developed are the main clients on the development side, while development companies that do not build their own projects form the client base for construction services. The portfolio of more than 500 active clients, considering contracts within the five-year warranty period after the occupancy permit (habite-se), is described as diversified, with no dependence on a small number of clients.

In its production process, the company has been operating in the construction industry since 1967, with specific know-how in residential building construction. Unlike heavy infrastructure builders, Construtora Adolpho Lindenberg does not own heavy construction equipment, focusing instead on an internal technical and management team that oversees worksites, while the physical execution is largely carried out by subcontractors. Substantially all works are contracted under a management model with target cost, in a subcontractor market described as highly fragmented. The company maintains a registry of pre-approved suppliers based on quality, reputation, technical reliability, and price, and it also requires proof of compliance with labor and social security laws before payments are made.

The company’s operating model includes its own full-time team at construction sites, composed of engineers, foremen, building and safety technicians, specialized supervisors, and administrative staff. This team is responsible for monitoring the physical and financial progress of works, ensuring the quality of services – including those performed by third parties – complying with safety standards, managing materials, tools, and equipment, and ensuring the delivery of units within deadlines. The company states that it uses standardized construction processes and the technological resources available in the market, with a focus on streamlining, productivity, quality control, and waste reduction. The projects usually include common areas with gardens, swimming pools (including heated pools), sports courts, fitness areas, recreation rooms, and playgrounds, aligned with its positioning in the mid- and high-end residential segment.

Construtora Adolpho Lindenberg focuses geographically on developing residential projects in the city and metropolitan area of São Paulo, as well as the countryside of the state of São Paulo. New business development is carried out by an in-house team that evaluates growth opportunities and seeks projects through partnerships with developers and participation in bidding processes. Among recent strategic moves, the start of operations of the joint venture EZCAL, a partnership with EZtec, stands out, with planned investments of R$ 130 million in the first 24 months and the initial development of two projects with potential PSV (VGV) of R$ 420 million. The company also reports the launch of projects such as Lindenberg Guarará, with potential PSV of R$ 142.5 million and full ownership by CAL, as well as significant launch and net sales volumes in fiscal years 2020 and 2021.

In its relationship with public authorities and regulators, the company’s activities, centered on building and selling properties, are mainly subject to oversight by CREA, CAU, and CRECI, in addition to federal, state, and municipal environmental laws and regulations. Urban planning and development approvals are generally the responsibility of landowners and developers. The company holds a trademark registration for “Construtora Adolpho Lindenberg S/A” with the INPI, in the class that covers property construction, architectural design, engineering, and civil construction services, and states that it views this brand as a relevant asset for generating new business opportunities.

From an environmental, social, and governance (ESG) standpoint, Construtora Adolpho Lindenberg reports that it strategically incorporated the ESG agenda into its annual planning in 2024, based on a materiality matrix. In governance, it highlights socio-environmental requirements in supplier qualification, investments in digital platforms for managing risks related to occupational safety, the environment, suppliers, and cyber risks, as well as strengthening internal communications and the governance structure by expanding the Board of Directors and setting up a Fiscal Council. In the environmental pillar, it reports routines for monitoring indicators such as waste recycling, water and energy consumption, and greenhouse gas emissions; the adoption of technologies such as stabilized mortar to reduce resource consumption; and measures to mitigate impacts on neighbors and the surroundings of construction sites. In the social pillar, it mentions a training program that includes literacy initiatives for employees and support for high-impact industry campaigns, such as the partnership with Instituto Liberta. The company is preparing its first sustainability report, expected for 2026, following the GRI standard and aligned with several UN Sustainable Development Goals (SDGs), with GHG emissions inventories already carried out for internal use.

In terms of finance and capital, Construtora Adolpho Lindenberg went through a broad restructuring process after its control was acquired by LDI in 2008, focused on reversing accumulated losses and rebuilding shareholders’ equity. Between 2010 and 2012, there was a capital increase followed by a capital reduction aimed at absorbing losses, which allowed the company to reverse its negative equity position in 2013. From then on, the company recorded positive results in several years, with recurring dividend distributions between 2013 and 2018 and new capital increases, including one in 2015 without issuing new shares. In more recent years, it combined loss-making periods, such as in 2019, with a resumption of project launches and positive results in 2020, 2021, and 2022, when it also approved a new capital increase of R$ 9.2 million to strengthen its capital structure and reduce leverage. These moves reflect the cyclical nature of the Brazilian residential real estate market and how the company has been adjusting its balance sheet and investment policy over time.

As a publicly traded company with shares listed on B3 under the ticker CALI3, Construtora Adolpho Lindenberg offers individual investors exposure to a residential development and construction business focused on the São Paulo region and targeting the mid- and high-end segments. Its operations combine the sale of residential units with the provision of construction services to third parties, using subcontractors under a centralized construction management model, and it operates in a competitive market in which land location, project quality, brand reputation, and access to financing are key drivers of revenue generation. At the same time, the company reports initiatives to strengthen governance, risk management, and ESG practices, as well as strategic partnerships with other sector players, as part of its growth agenda and adaptation to the Brazilian economic and regulatory environment.