Construtora Tenda (TEND3) Q4 2024 earnings summary

Executive summary

• Achieved historic milestones in launches and sales, with consolidated net revenue of R$850.6 million in 4Q24, up 12.7% year-over-year, and record cash generation of R$83.6 million in the quarter.

• Recurring net profit reached R$66.3 million in 4Q24 and R$210.7 million in 2024, with significant margin expansion and operational efficiency.

• Achieved significant reduction in pró-soluto pós-chaves, improving future credit quality and reducing exposure, with a drop from 14.1% to 8.4% over two years and 3.1 p.p. year-over-year in Q4 2024.

• Completed the sale of a stake in Alea to Good Karma Ventures, valuing Alea at R$1.1 billion pre-money, with R$80 million received and a post-transaction stake of 6.97%.

• Executed share buyback and cancellation programs in early 2025.

Financial highlights

• Adjusted gross profit for 4Q24 was R$261.7 million, up 39.4% year-over-year; adjusted gross margin reached 34.3%, up 9.4 p.p. excluding Pode Entrar effects.

• Tenda segment achieved adjusted gross margin of 36.2% in 4Q24, the second-highest in its history, with healthy project margins at 39.7%.

• Alea's adjusted gross margin improved to 11.2% in 4Q24 from -10.6% in 4Q23, with backlog margin at 25.9%.

• Adjusted EBITDA for 2024 was R$536.0 million, up 92.8% year-over-year, with a margin of 17.7%.

• Net debt to equity ratio turned negative, approaching -10.3% by 4Q24, supporting potential for higher dividend distribution.

Outlook and guidance

• 2025 guidance for Tenda: net pre-sales R$3.8–4.0 billion, net income R$360–380 million, adjusted gross margin 34–36%.

• Alea guidance: net pre-sales R$700–800 million, adjusted gross margin 20–24%, targeting breakeven or up to R$20 million net income.

• Focus remains on margin expansion, robust launch pipeline, and maintaining strong cash generation.