DIRR3

Direcional Engenharia S.A. is a Brazilian real estate developer and construction company founded on February 19, 1981, in Belo Horizonte, Minas Gerais, by Ricardo Valadares Gontijo, its controlling shareholder and current chairman of the board of directors. The company began its operations with the development and construction of small projects and the execution of public infrastructure works, especially in basic sanitation and healthcare, participating in public tenders in several municipalities in Minas Gerais. Throughout the 1980s and early 1990s, it consolidated its brand in Minas Gerais and gradually expanded its operations to other states, always focused on civil construction. In 2007, it became a corporation, adopting the name Direcional Engenharia S.A., and in 2008 it obtained registration as a publicly held company, with its shares traded on B3 under the ticker DIRR3. In 2009, it carried out its initial public offering of shares, a milestone that financed a new phase of the company’s national expansion.

Starting in the 1990s, Direcional Engenharia redefined its strategic focus toward residential development, with an emphasis on affordable housing projects. This focus deepened with the launch, in 2009, of the Minha Casa, Minha Vida (MCMV) housing program, which became the company’s main line of business. Over more than four decades of experience, the company has structured a vertically integrated business model in the development and construction of residential projects primarily targeted at low-income segments, complemented by its presence in mid-range projects through its subsidiary Riva Incorporadora S.A. Activities are concentrated on land identification and acquisition, project development, obtaining approvals and permits, construction, sales of units, and after-sales service. The bulk of net revenue comes from property sales and, to a lesser extent, from the provision of construction services under turnkey contracts and brokerage.

Direcional Engenharia’s operating model is based on strong standardization and industrialization of the construction process, seeking economies of scale in large-scale projects. The company operates in a vertically integrated manner in virtually all stages, using mostly its own workforce in the main on-site activities. Its construction method uses aluminum forms and concrete walls, enabling shorter construction cycles and higher project repeatability. This approach makes it possible, for example, to build the structure of a building of up to five floors in a significantly reduced timeframe, with specialized work cells for electrical installations, foundations, formwork assembly, and other construction stages. The construction process is integrated with a land acquisition model that favors physical and financial land swaps, reducing initial cash outlays and aligning the landowner’s return with the project’s economic performance.

In terms of portfolio and market segments, the company focuses on developing affordable housing projects within the various brackets of the Minha Casa, Minha Vida Program, currently structured to serve families with gross monthly income of up to R$ 12,000. Direcional operates as a developer and builder in the brackets where there is financing through Caixa Econômica Federal with FGTS resources and housing subsidies and, in the recent past, also executed turnkey contracts in the former Bracket 1 (FAR), in which it did not assume direct responsibility for the sale of units. The subsidiary Riva Incorporadora is positioned in the mid-income segment, with products both within and outside the MCMV program. As of December 31, 2025, a significant portion of the inventory of units and land bank of Direcional and Riva fell within the program’s parameters, highlighting the predominance of the affordable and accessible mid-range housing niche in the company’s revenue mix.

Geographically, Direcional Engenharia operates in several regions of the country, with a presence in eight states and the Federal District. Its main markets include Amazonas, Bahia, Ceará, Goiás, Minas Gerais, Pernambuco, Rio de Janeiro, and São Paulo, in addition to Brasília and its satellite cities. Over its history, the company has expanded its reach to more than 45 Brazilian cities, although its current focus is concentrated in state capitals, metropolitan regions, and specific hubs in the interior of São Paulo state. This geographic profile is aligned with the logic of the federal housing program, which allocates budget and price caps by state and region, and with the company’s strategy of operating in markets with significant demand for affordable housing and good availability of housing finance.

Direcional’s sales structure was built to support its vertically integrated model. The company created its own real estate brokerage subsidiary, Direcional Corretora de Imóveis S.A. (Direcional Vendas), dedicated exclusively to selling the group’s products. A significant share of sales is conducted by this in-house team, supplemented by partnerships with local brokers and customized sales outlets, which helps keep completed inventory at low levels. The business model also incorporates the practice of pre-completion mortgage transfer, in which the customer’s loan with the financial institution is contracted on an associative basis during the sales process, before or during construction. This approach shortens the cash cycle of projects, reduces the risk of cancellations, and lowers the need for the company’s own capital throughout the construction phase.

From a regulatory standpoint, Direcional Engenharia’s activities are influenced by a broad set of rules related to real estate development, housing credit, and urban and environmental licensing. The company depends on approvals from city halls, environmental agencies, and property registries to start construction, register developments, and obtain occupancy permits (habite-se), which are necessary for unit delivery and final release of financing funds. The legal framework includes the Real Estate Development Law, which defines obligations such as registering the development’s descriptive report, disclosing the registration number in marketing materials, and delivering units within the promised timeframes, as well as the legislation on separate-asset structures (patrimônio de afetação), which allows segregation of each project’s assets and liabilities, protecting buyers and creditors. In addition, the sector in which the company operates is sensitive to housing credit policy and the availability of FGTS and savings resources, which shape financing conditions for the target audience of its projects.

Direcional Engenharia also organizes its development process based on economic-financial and market feasibility studies for each piece of land under analysis, involving in-house engineering, architecture, and commercial teams. Land selection takes into account location, zoning, intended product, estimated sale price, and construction cost, as well as regional socioeconomic research. Once the land is defined, the company designs the project, coordinates approval with public authorities, and registers the development, usually starting sales about six months before construction effectively begins. The typical cycle of an affordable housing project at Direcional, from land prospecting to obtaining the occupancy permit (habite-se) and final receipt of financing funds, averages around 38 months, varying according to regional characteristics and weather conditions.

Direcional Engenharia’s shares, traded on B3 under the ticker DIRR3, are backed by a business focused on the development and construction of affordable and mid-range residential projects, with strong exposure to the Minha Casa, Minha Vida program and federal housing policy. The company maintains a sizable land bank, with a high percentage acquired through land swaps, which influences its capital structure and capacity to launch new projects. The combination of a vertically integrated operation, an industrialized construction process, intensive use of pre-completion mortgage transfer, and presence in multiple urban markets with low and mid-income populations characterizes the company’s operating profile within Brazil’s residential construction sector.