Eucatex (EUCA4) Q2 2024 earnings summary

Executive summary

• Net revenue in 2Q24 reached R$688.8 million, up 5.8% year-over-year, with recurring EBITDA of R$142.5 million (+10.3%) and recurring net income of R$67.0 million (+8.2%).

• 1H24 net revenue was stable at R$1,329.8 million, while recurring EBITDA fell 1.3% and recurring net income dropped 14.5% compared to 1H23.

• The construction materials segment accounted for 40% of sales, with positive momentum in domestic and export markets.

Financial highlights

• Gross profit in 2Q24 was R$223.0 million (+4.5% YoY), with a gross margin of 32.4%, down 0.4 p.p. YoY.

• Recurring EBITDA margin improved to 20.7% in 2Q24, up 0.9 p.p. from 2Q23.

• Net income for 2Q24 was R$66.9 million (+20.6% YoY), with a net margin of 9.7%.

• Net debt at quarter-end was R$595.4 million, representing 1.1x annualized recurring EBITDA.

• Operating cash flow in 1H24 was R$150.1 million, down from R$235.2 million in 1H23.

Segment performance

• Construction segment net revenue was R$269.0 million in 2Q24, up 6.9% year-over-year, accounting for 39-40% of revenue.

• Industry and resale segment net revenue was R$254.4 million in 2Q24, up 5.1% year-over-year.

• Export segment net revenue was R$142.4 million in 2Q24, up 10.3% year-over-year.

• Improved product mix and new launches supported growth in key segments.