EcoRodovias Infraestrutura e Logística (ECOR3) Q3 2024 earnings summary

Executive summary

• Comparable traffic grew 6.1% in 3Q24 and 6.5% in 9M24, driven by heavy vehicle growth and new toll collections at EcoRioMinas and EcoNoroeste.

• Adjusted EBITDA was R$1,220.3M in 3Q24 (+18.0%) and R$3,455.0M in 9M24 (+25.3%), with margins above 72%.

• Net income reached R$264.6M in 3Q24 (+14.9%) and R$774.6M in 9M24 (+65.9%), reflecting strong operational performance.

• Major investments in road widening, intersections, and digital tolling, with capex totaling R$1,122.3M in 3Q24 and R$2,950.9M in 9M24.

• Integration of operations at the new São Paulo Operations Center enables management of up to four concessions.

Financial highlights

• Adjusted gross revenue was R$1.9B in 3Q24 (+14.9%) and R$5.3B in 9M24 (+20.3%).

• Adjusted net revenue reached R$1,664.6M in 3Q24 (+15.6%) and R$4,740.1M in 9M24 (+23.0%).

• Adjusted cash costs rose 4.3% in 3Q24 and 4.4% in 9M24, in line with inflation.

• Cash cost/adjusted net revenue ratio improved to 27.2% in 9M24, down 1.5 p.p. from 2023.

• Adjusted EBITDA margin was 73.3% in 3Q24 (+1.5 p.p.) and 72.9% in 9M24 (+1.3 p.p.).

Outlook and guidance

• Traffic and capex growth are expected to remain strong through 2025, supported by new toll collections and positive harvest expectations.

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

• EcoNoroeste to gradually convert all 10 toll plazas to free-flow by 2030.

• Major capex commitments remain, with R$39.4B in contractual investments to be executed.

• Ongoing focus on digital transformation, cost control, and operational synergies.