Direcional Engenharia (DIRR3) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial results in 2024, with the highest launches (over 18,000 units, BRL 5.8 billion), net sales (BRL 6.3 billion, +57% YoY), and net income (BRL 638 million, +93% YoY, net margin 19.1%).

• Riva subsidiary contributed BRL 2.2 billion in launches and 67% sales growth.

• Distributed BRL 577 million in dividends, representing a 90% payout ratio and a yield of nearly 15%.

• Ended 2024 with a net cash position of BRL 68 million and cash/short-term investments of BRL 1.6 billion (+22% YoY).

• ROE reached a record 33% in 4Q24.

Financial highlights

• Consolidated net revenue was BRL 3.3 billion (+42% YoY); total net revenue including non-consolidated SPEs was BRL 4.5 billion (+40%).

• Adjusted gross margin for 2024 was 38.5% (+180 bps YoY), with 4Q gross margin at 39.5%.

• Adjusted EBITDA for 2024 was BRL 842 million (+54% YoY), with a margin of 27%.

• SG&A expenses diluted to 5.6% of gross revenue, reflecting operational efficiency.

• Backlog revenue at year-end was BRL 2.8 billion (+67% YoY), with a backlog margin of 43.9%.

Outlook and guidance

• Management remains optimistic for 2025, focusing on sales acceleration, operational efficiency, and capital returns.

• Continued strong cash generation expected, with turnover prioritized over margin expansion.

• Cautious approach to macroeconomic and political conditions, with selective new launches.