EcoRodovias Infraestrutura e Logística (ECOR3) Q3 2024 earnings summary

Executive summary

• Comparable traffic grew 6.1% in Q3 and 6.5% in 9M24, led by heavy vehicle growth and road capacity expansion.

• Net income reached R$264.6 million in Q3 (+14.9%) and R$774.6 million in 9M24 (+65.9%), reflecting strong operational performance.

• Adjusted EBITDA was R$1.2 billion in Q3 (+18%) and R$3.5 billion in 9M24 (+25.3%), with margins above 72%.

• Major investments in road widening, intersections, and digital tolling were completed, with integration of operations at the new São Paulo Operations Center.

• Capex focused on highway expansion and improvements, totaling R$1,122.3M in Q3 and R$2,950.9M in 9M24.

Financial highlights

• Adjusted gross revenue was R$1.9 billion in Q3 (up 14.9%) and R$5.3 billion in 9M24 (up 20.3%).

• Adjusted net revenue grew 15.6% in Q3 and 23% in 9M24, with a 5.8 p.p. increase in electronic toll collection.

• Adjusted cash costs increased 4.3% in Q3 and 4.4% in 9M24, in line with inflation.

• Cash costs over adjusted net revenue ratio was 27.2% in 9M24, down 1.5 p.p. from 2023.

• Adjusted EBITDA margin reached 73.3% in Q3, up 1.5 p.p. YoY.

Outlook and guidance

• Traffic growth is expected to remain strong through 2024 and 2025, supported by a diverse traffic profile and positive harvest expectations.

• CapEx for 2024 is projected at R$4–4.5 billion, with historical execution at 80–85% of plan due to licensing and weather challenges.

• Free flow gantries for electronic toll collection launched at Itápolis/SP and Jaboticabal/SP in 2H24; EcoNoroeste to convert all 10 plazas to free-flow by 2030.

• Start of toll collection by EcoNoroeste in the TEBE stretch expected in March 2025, representing ~20% of expected toll revenue.

• Long-term capex commitments for highway concessions stand at R$39.4B.