RE: ⭐ Realistic valuation: 60p–100p near-term ⭐ 150p+ medium-term with execution1 Dec 2025 07:09
Just a reminder....
Highlights
· Landmark agreement to manufacture and supply 20,000 homes in Chile under the Government's flagship social housing programme.
· Approximately €420 million gross revenues over seven years, with Government-backed payment structure.
· First 607-house tranche funded with 50% deposit of €12.75 million.
· Establishes Eco as a key provider in Chile's housebuilding programme.
Eco Buildings Group PLC ("Eco Buildings" or the "Company"), the UK-listed modular housing innovator (AIM: ECOB), is pleased to announce that it has signed a landmark agreement with the authorities in Chile to deliver 20,000 high-quality modular homes under the Chilean Government's flagship social housing programme. The approximately €420 million contract spans seven years and marks Eco's transition from certification to full-scale commercial rollout in Latin America.
Background
In July 2023, Eco initiated the rigorous two-tier approval process in Chile, one of the most stringent in Latin and Central America. Following successful completion of all required testing and acoustic and insulation validations, Eco has now achieved full certification, joining a select group of approved building systems in the country.
As previously announced on 3 March 2025, Eco constructed demonstration homes in Melipilla (Metropolitan Region) and Valparaíso, two strategically important areas near Santiago. These show homes were visited by senior Government officials, parliamentarians and municipal leaders, allowing them to assess first-hand the quality, speed and aesthetics of Eco's technology.Following these visits and town hall allocation meetings, the first tranche of 607 homes has already been designated to beneficiary families. It is expected this initial tranche will be delivered during the course of 2026 and is fully costed by a 50% deposit of €12.75 million, in line with Chile's government payment framework. By the seventh year of the contract, the Company is expected to be delivering up to 5,000 homes per year.
Under the terms of the agreement, Eco will supply 20,000 homes over seven years, generating approximately €420 million in gross revenues. To deliver this efficiently, Eco will deploy a new manufacturing line in Chile, leveraging its fully automated GFRG (glass fibre reinforced gypsum) panel technology. Factory installation is planned for Q2 2026.The Chilean Government's long-term programme targets 250,000 homes nationwide. With certification achieved and commercial rollout underway, Eco is well positioned to become a long-term partner in addressing Chile's social housing deficit. The Board anticipates replicating this model across Latin America.
Chile's social housing programmes are delivered through a structured framework involving EGIS (Social Housing Management Organisations) and SERVIU (the national housing authority).