TricityNarrow moat

Dom Development (DOM) — moat facet

Bought in 2017 and the richest margin every year since, though its first half of 2026 was its weakest in years.

Dom's most profitable city is not its capital. The Tricity, Gdańsk, Gdynia and Sopot, produced 308,3 million złoty of gross profit in 2025, 27,5% of the group's, on 776,6 million of revenue, 23,9% of the total12. Its gross margin was 39,7%, the highest of Dom's four cities3, and measured before acquisition accounting it has been the highest in every full year Dom has owned it.

Tricity gross margin, before acquisition accounting (%)36,7%201838,9%201936,1%202035,2%202138,8%202238,5%202339,3%202439,7%202530,1%H1 2026Dom Development consolidated financial statements, segment notes; H1 2026 interim statements
Near 40% for years, then 30% in a half with few Tricity handovers.

Dom arrived by buying Euro Styl in 2017 for 260 million złoty4, and the business still trades under the Euro Styl name. Revenue was 107,2 million in the part-year 2017 and 335,9 million in 2018, the first full year5. The purchase came with a cost that the segment note shows plainly: the flats Euro Styl already owned were restated to fair value on acquisition, so part of their profit was written into the purchase price instead of the income statement. That acquisition accounting took 94,2 million złoty off the Tricity's gross profit between 2017 and 2022, 51,6 million of it in 2018 alone6789. Before that charge, the margin ran between 35,2% and 39,7% every year from 2018 to 202510.

What differs from the other cities is position, not method. Euro Styl had the highest sales in the Tricity in 2025, a 12,5% share on 1 082 contracts11, after ranking third in 2024 with 1 038 units12.

Growth has been steady but slowing. Revenue compounded at about 12,7% a year from 2018 to 2025, with one bad year: 2019, when it fell 27,6% to 243,2 million złoty1314. Since 2022 the increases have shrunk each year, 30,5%, 18,6%, 14,3% and 7,9%15, which is what a line looks like as it matures inside a larger group.

The two latest quarters are the weakest in years. Revenue was 86,2 million złoty in the first quarter of 2026 against 119,0 million, and 54,7 million in the second against 216,3 million161718. For the half it fell 58% to 140,9 million, and the gross margin dropped to 30,1% from 42,1%1920. Deliveries fell 47% to 206 units21. The company explains the group's lower margin by the mix of projects delivered22, and in a city this small one or two buildings are the mix.

The forward indicators point the other way. Tricity sales rose 22% in the half to 611 units, stock available for sale rose to 1,259, 2 865 units were under construction, and the land bank grew 7% to 5 962 units, the only one of Dom's cities where it grew23. This line is refilling while the others draw down, which is the discipline the rest of the company claims.

The question the second half of 2026 answers is whether the first half's 30,1% margin was a timing accident or a new level. If Tricity gross margins return above 35% as the larger building programme completes, the 2017 purchase remains the best capital allocation decision Dom has made. If they stay near 30%, the Tricity is simply another good city.

Moat trajectory: Holding steady

Tricity revenue fell 58% in H1 2026 and the margin to 30,1%, but sales rose 22% and the land bank grew 7%.

The number that tests this moat
Moat Explorer calc
Tricity segment gross margin, H1 2026
30,1%, from 42,1% a year earlier

A return above 35% would confirm the Tricity as Dom's richest city; staying near 30% would not.

How it's calculated: Tricity segment gross profit / Tricity segment revenue
Source: Dom Development H1 2026 interim financial statements ↗
References
  1. ReportedThe Tricity, Gdańsk, Gdynia and Sopot, produced 308,3 million złoty of gross profit in 2025, 27,5% of the group's, on 776,6 million of revenue, 23,9% of the total.
    Dom Development Group consolidated financial statements for 2025 - segment note (Warsaw, Wroclaw, Tricity, Krakow revenue and gross profit, 2025 and 2024), revenue by type (finished products, services, land), revenue recognised on handover when paid in full — FY2025 · publ. March 2026 · source ↗
  2. Moat Explorer calcThe Tricity, Gdańsk, Gdynia and Sopot, produced 308,3 million złoty of gross profit in 2025, 27,5% of the group's, on 776,6 million of revenue, 23,9% of the total.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  3. Moat Explorer calcIts gross margin was 39,7%, the highest of Dom's four cities, and measured before acquisition accounting it has been the highest in every full year Dom has owned it.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  4. ReportedDom arrived by buying Euro Styl in 2017 for 260 million złoty, and the business still trades under the Euro Styl name.
    Dom Development corporate history — founded 1996, listed on the Warsaw Stock Exchange October 2006; 40 000+ flats delivered; Wrocław entry 2008; Tri-City via the 260m zł Euro Styl acquisition (2017); Kraków via Sento (77% for 35,4m zł, July 2021) and Buma — 1996-2026 · source ↗
  5. ReportedRevenue was 107,2 million in the part-year 2017 and 335,9 million in 2018, the first full year.
    Dom Development Group consolidated financial statements for 2018 - segment note for 2018 and 2017, Euro Styl purchase-price allocation PLN 51 614 thousand (2018) and PLN 14 363 thousand (2017) — FY2017-FY2018 · publ. March 2019 · source ↗
  6. ReportedThat acquisition accounting took 94,2 million złoty off the Tricity's gross profit between 2017 and 2022, 51,6 million of it in 2018 alone.
    Dom Development Group consolidated financial statements for 2018 - segment note for 2018 and 2017, Euro Styl purchase-price allocation PLN 51 614 thousand (2018) and PLN 14 363 thousand (2017) — FY2017-FY2018 · publ. March 2019 · source ↗
  7. ReportedThat acquisition accounting took 94,2 million złoty off the Tricity's gross profit between 2017 and 2022, 51,6 million of it in 2018 alone.
    Dom Development Group consolidated financial statements for 2020 - segment note for 2020 and 2019 (Warsaw, Wroclaw, Tricity) — FY2020 · publ. March 2021 · source ↗
  8. ReportedThat acquisition accounting took 94,2 million złoty off the Tricity's gross profit between 2017 and 2022, 51,6 million of it in 2018 alone.
    Dom Development Group consolidated financial statements for 2022 - segment note for 2022 and 2021, gross profit before and after purchase-price allocation — FY2022 · publ. March 2023 · source ↗
  9. Moat Explorer calcThat acquisition accounting took 94,2 million złoty off the Tricity's gross profit between 2017 and 2022, 51,6 million of it in 2018 alone.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  10. Moat Explorer calcBefore that charge, the margin ran between 35,2% and 39,7% every year from 2018 to 2025.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  11. ReportedEuro Styl had the highest sales in the Tricity in 2025, a 12,5% share on 1 082 contracts, after ranking third in 2024 with 1 038 units.
    Dom Development Management Board's report on 2025 activities - NPS 69 points; 2025 market shares: Warsaw 13,2% (2 015 units), Wroclaw 12,4% (816), Tricity 12,5% (1 082), Krakow 7,8% (535, second) — FY2025 · publ. March 2026 · source ↗
  12. ReportedEuro Styl had the highest sales in the Tricity in 2025, a 12,5% share on 1 082 contracts, after ranking third in 2024 with 1 038 units.
    Dom Development Management Board's report on 2024 activities - NPS 67 points in 2024; 13,2% of the Warsaw market; 4 269 units sold — FY2024 · publ. March 2025 · source ↗
  13. ReportedRevenue compounded at about 12,7% a year from 2018 to 2025, with one bad year: 2019, when it fell 27,6% to 243,2 million złoty.
    Dom Development Group consolidated financial statements for 2020 - segment note for 2020 and 2019 (Warsaw, Wroclaw, Tricity) — FY2020 · publ. March 2021 · source ↗
  14. Moat Explorer calcRevenue compounded at about 12,7% a year from 2018 to 2025, with one bad year: 2019, when it fell 27,6% to 243,2 million złoty.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  15. Moat Explorer calcSince 2022 the increases have shrunk each year, 30,5%, 18,6%, 14,3% and 7,9%, which is what a line looks like as it matures inside a larger group.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  16. ReportedRevenue was 86,2 million złoty in the first quarter of 2026 against 119,0 million, and 54,7 million in the second against 216,3 million.
    Dom Development Group interim condensed consolidated financial statements for Q1 2026 - segment revenue and gross profit for the three months to 31 March 2026 and 2025 — Q1 2026 · publ. May 2026 · source ↗
  17. ReportedRevenue was 86,2 million złoty in the first quarter of 2026 against 119,0 million, and 54,7 million in the second against 216,3 million.
    Dom Development Group interim condensed consolidated financial statements for H1 2026 - segment revenue and gross profit for the six months to 30 June 2026 and 2025 (Poznan added as a fifth segment); revenue by type — H1 2026 · publ. September 2026 · source ↗
  18. Moat Explorer calcRevenue was 86,2 million złoty in the first quarter of 2026 against 119,0 million, and 54,7 million in the second against 216,3 million.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  19. ReportedFor the half it fell 58% to 140,9 million, and the gross margin dropped to 30,1% from 42,1%.
    Dom Development Group interim condensed consolidated financial statements for H1 2026 - segment revenue and gross profit for the six months to 30 June 2026 and 2025 (Poznan added as a fifth segment); revenue by type — H1 2026 · publ. September 2026 · source ↗
  20. Moat Explorer calcFor the half it fell 58% to 140,9 million, and the gross margin dropped to 30,1% from 42,1%.
    Moat Explorer calculations from Dom Development's filed segment revenue and gross profit (consolidated financial statements 2017-2025, Q1 and H1 2026 interim statements) — 2017 - H1 2026 · publ. 2026 · source ↗
    Method: Shares = segment / total; gross margin = segment gross profit / segment revenue (before purchase-price allocation for annual years); CAGR = (end/start)^(1/years) - 1; Q2 = H1 less Q1; land-bank years = city land bank / 2025 units sold
  21. ReportedDeliveries fell 47% to 206 units.
    Dom Development H1 2026 management report - construction material prices +1,1% in H1 2026 and +3,5% year on year in June (OSB and timber +11%, insulation +5%, PSB data); group gross margin 30,9% against 35,2%, attributed to project mix; BIK housing-loan enquiries +15,8% by value in June 2026, average amount PLN 506,6k (+6,2%); 49% of Q2 2026 units bought with buyers' own funds only; optimal land bank at least four years of sales; annual dividends since the 2006 listing — H1 2026 · publ. 2026 · source ↗
  22. ReportedThe company explains the group's lower margin by the mix of projects delivered, and in a city this small one or two buildings are the mix.
    Dom Development H1 2026 management report - construction material prices +1,1% in H1 2026 and +3,5% year on year in June (OSB and timber +11%, insulation +5%, PSB data); group gross margin 30,9% against 35,2%, attributed to project mix; BIK housing-loan enquiries +15,8% by value in June 2026, average amount PLN 506,6k (+6,2%); 49% of Q2 2026 units bought with buyers' own funds only; optimal land bank at least four years of sales; annual dividends since the 2006 listing — H1 2026 · publ. 2026 · source ↗
  23. ReportedTricity sales rose 22% in the half to 611 units, stock available for sale rose to 1,259, 2 865 units were under construction, and the land bank grew 7% to 5 962 units, the only one of Dom's cities where it grew.
    Dom Development H1 2026 management report - construction material prices +1,1% in H1 2026 and +3,5% year on year in June (OSB and timber +11%, insulation +5%, PSB data); group gross margin 30,9% against 35,2%, attributed to project mix; BIK housing-loan enquiries +15,8% by value in June 2026, average amount PLN 506,6k (+6,2%); 49% of Q2 2026 units bought with buyers' own funds only; optimal land bank at least four years of sales; annual dividends since the 2006 listing — H1 2026 · publ. 2026 · source ↗
Sources
Generated September 24, 2026