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 operations by developing and building small projects and executing 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 activities to other states, always focused on civil construction. In 2007, it was converted into a corporation, adopting the name Direcional Engenharia S.A., and in 2008 it obtained registration as a publicly traded company, with its shares listed on B3 under the ticker DIRR3. In 2009, it carried out its initial public offering, 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 low-income projects. This strategy was strengthened 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 built a vertically integrated business model in the development and construction of residential projects aimed mainly at low-income households, complemented by its presence in mid-income projects through its subsidiary Riva Incorporadora S.A. Activities focus on identifying and acquiring land, project development, obtaining approvals and licenses, construction, sales of the units and after-sales service, with most net revenue coming from property sales and, to a lesser extent, from construction services under general contracting arrangements 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 mainly its own workforce in key construction activities. Its construction method employs aluminum formwork and concrete walls, allowing shorter construction cycles and greater project repeatability. This approach makes it possible, for example, to build the structure of a building with up to five floors in a significantly reduced timeframe, using specialized work cells for electrical installations, foundations, formwork assembly and other stages of construction. 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 the development of low-income projects that fall within the various tiers 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 tiers that have financing through Caixa Econômica Federal using FGTS funds and housing subsidies and, in the recent past, also executed construction contracts in the former Tier 1 (FAR), in which it did not take on direct sales of the units. The subsidiary Riva Incorporadora is positioned in the mid-market segment, with products both inside and outside MCMV. On December 31, 2025, a relevant portion of the inventory of units and land bank of Direcional and Riva fell within the program’s parameters, highlighting the predominance of the low-income housing and affordable mid-market niche in the company’s revenue mix.

Geographically, Direcional Engenharia maintains operations 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, as well as 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 on state capitals, metropolitan regions and specific hubs in the interior of São Paulo state. This geographic scope 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 low-income housing and good availability of mortgage financing.

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 marketing the group’s products. A relevant share of sales is carried out by this in-house team, complemented 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 presales with early mortgage transfer, in which the customer’s financing with the financial institution is contracted on an associative basis during the sales process, before or during construction. This approach shortens the projects’ cash cycle, reduces the risk of cancellations and lowers the company’s need for equity 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, mortgage credit and urban and environmental licensing. The company depends on approvals from city halls, environmental agencies and land registries to start construction, record developments and obtain the occupancy permit (habite-se), a document required for delivery of the units and final release of financing funds. The legal framework includes the Real Estate Development Law, which defines obligations such as registering the project description, disclosing the registration number in marketing materials and delivering the units within the promised deadlines, as well as the allocation-of-assets legislation, which allows for the segregation of assets and liabilities of each project, protecting buyers and creditors. In addition, the sector in which the company operates is sensitive to mortgage credit policy and to the availability of FGTS and savings resources, which shape financing conditions for the target audience of its projects.

Direcional Engenharia also structures its development process based on economic-financial and market feasibility studies for each land plot analyzed, involving in-house engineering, architecture and commercial teams. Land selection considers location, zoning, intended product, estimated sale price and construction cost, as well as regional socioeconomic research. Once the land is defined, the company prepares the project, coordinates its approval with public agencies and registers the development, generally starting sales around six months before construction effectively begins. The typical cycle of a low-income project by Direcional, from land prospecting to obtaining the occupancy permit and receiving the final financing funds, is 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 low-income and mid-market 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 its ability to launch new projects. The combination of a vertically integrated operation, industrialized construction process, intensive use of presales with early mortgage transfer and presence in multiple urban markets with low and mid-income populations characterizes the company’s operating profile within the Brazilian residential construction sector.