Even Construtora e Incorporadora (EVEN3) Q3 2024 earnings summary

Executive summary

• Completed the Melnick divestment and shifted future consolidated operations to São Paulo, targeting mid- to high-end residential segments.

• 9M24 consolidated revenue was R$1.707bn, up 38% YoY; gross profit reached R$458.7m, with adjusted gross margin of 30.7%.

• Management cited 9M24 net income of R$164m excluding Melnick; reported parent-attributable net income was R$56.1m.

• Launched Edifício Jardim, the first RFM joint venture, and delivered three projects totaling 480 units and R$260m in PSV during Q3.

Financial highlights

• 9M24 inventory sales reached R$841m, up 47% YoY; Q3 net sales were R$247m, including R$235m of inventory sales.

• Consolidated 9M24 net income was R$131.5m, including R$10.4m from discontinued operations; Q3 consolidated net loss was R$34.1m, including a R$109.9m loss attributable to shareholders.

• The final Melnick stake sale generated R$134.1m in Q3 cash and a R$97m accounting loss; total Melnick-sale cash reached R$306m in 9M24.

• Adjusted gross margin was 30.7% in 9M24, up 5.4 p.p. YoY; adjusted net margin excluding Melnick was 13.3%.

• Operational cash generation was R$186.4m in Q3 and R$212m in 9M24; R$230m in dividends was paid in 2024.

Outlook and guidance

• Launch pipeline for 2025 totaled R$2bn in PSV, with most projects approved or in final approval stages; 2024 launches totaled R$1.27bn in PSV.

• Future results are expected to benefit from higher margins, capital discipline and an optimized structure, with continued investment in São Paulo.

• Management expected ~R$200m in cash generation and recurring dividends at ~50% of net income for the following year, subject to market conditions.