Cyrela Brazil Realty S.A. (CYRE3) Q3 2024 earnings summary

Executive summary

• Net income reached R$473 million in 3Q24, up 88% year-over-year and 15% sequentially, with 9M24 net income totaling R$1,152 million, a 66% increase year-over-year.

• Launches in 3Q24 totaled R$3,123 million, up 44% year-over-year and 114% sequentially, with 15 projects launched; 9M24 launches were R$6,284 million.

• Pre-sales reached R$3,201 million in 3Q24, up 41% year-over-year and 35% sequentially; 9M24 pre-sales were R$7,719 million, up 23% year-over-year.

• Gross margin in 3Q24 was 33.3%, stable year-over-year and up 0.5 p.p. sequentially; net margin reached 23.3%.

• Cash generation in 3Q24 was R$129 million, including a non-recurring gain of R$115 million from the sale of Cury shares.

Financial highlights

• Net revenue in 3Q24 was R$2,030 million, up 25% year-over-year and 9% sequentially; 9M24 revenue was R$5,460 million, up 20% year-over-year.

• Gross profit in 3Q24 was R$676 million, up 24% year-over-year; 9M24 gross profit was R$1,780 million, up 21%.

• Adjusted gross margin in 3Q24 was 35.0%, down 0.3 p.p. year-over-year, up 0.3 p.p. sequentially.

• EPS in 3Q24 was R$1.26, compared to R$0.67 in 3Q23 and R$1.10 in 2Q24.

• ROE (LTM) reached 17.6%, up 4.8 p.p. year-over-year.

Outlook and guidance

• Management remains cautious about macroeconomic risks, including interest rates, inflation, and political factors in Brazil, but is confident in operational and financial performance.

• No significant changes expected in strategy for 2025; focus remains on disciplined land acquisition and maintaining strong ROE.

• Cash generation for 2025 is projected between R$300 million and R$500 million, with dividend decisions pending further review.