Cury Construtora e Incorporadora (CURY3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of R$1,055.9 million in 3Q24, up 40.4% year-over-year, with strong operational performance and robust launches in São Paulo and Rio de Janeiro.

• Net income reached R$180.6 million in 3Q24, a 60.0% increase year-over-year, with a net margin of 17.1%.

• ROE reached 64.2% in 3Q24, up 14.5 p.p. year-over-year.

• Maintained focus on higher-value segments, with average unit price up 10% year-over-year.

• Landbank reached an all-time high of R$19.5 billion in PSV, totaling over 67,000 units.

Financial highlights

• Net revenues for 3Q24 were R$1,055.9 million, up 40.4% year-over-year and 5.8% sequentially.

• Adjusted gross margin improved to 39%, up 1 percentage point year-over-year.

• Adjusted EBITDA reached R$221.4 million, up 54.4% year-over-year, with a margin of 21.0%.

• Operating cash generation for the quarter was R$147.0 million.

• Net cash position at quarter-end was R$322.7 million, with gross debt of R$1,102.5 million (94% long-term).

Outlook and guidance

• Management expects continued strong demand, supported by government housing programs and robust landbank.

• Confident in achieving another year of significant accomplishments driven by high market demand and execution capacity.

• Plans to maintain or slightly grow the land bank, focusing on high-quality plots in strategic areas.

• Expectation of stable funding for individual mortgages, with government budget allocations remaining robust.

• Strategy remains focused on high and above-MCMV brackets, with continued emphasis on higher average unit prices.