Construtora Tenda (TEND3) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of transformation with record launches, sales, and improved profitability driven by operational efficiency and disciplined execution, including consolidated net revenue of R$850.6 million in 4Q24, up 12.7% year-over-year.

• Significant reduction in post-handover credit exposure, with pro-soluto post-handover dropping from 14.1% to 8.4% over two years, and margin expansion supported by recurring net profit of R$66.3 million in 4Q24 and R$210.7 million in 2024.

• Record cash generation, with operational cash flow of R$97.5 million in 4Q24 and total cash position at R$849.3 million.

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

• Share buyback and cancellation programs executed in early 2025, reducing outstanding shares.

Financial highlights

• Adjusted gross margin reached 34.3% in 4Q24, up 9.4 p.p. year-over-year, with Tenda segment at 36.2% and Alea improving to 11.2%.

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

• Net income for 2024 was R$106.4 million, reversing a loss in 2023; net margin improved to 3.2%.

• Net debt/equity closed 4Q24 at 20.1%, with corporate net debt/equity at -10.3%.

• Landbank PSV grew to R$22.8 billion, up 17.9% year-over-year.

Outlook and guidance

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

• 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.