EZTEC Empreendimentos e Participações S.A. (EZTC3) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly gross profit and net revenue in 3Q24, with net revenue of R$ 479M and gross profit of R$ 163M, driven by successful launches and high sales velocity.

• Net income for 3Q24 reached R$ 133M, with a gross margin of 34.0% and net margin of 27.7%.

• Notable launches included Lindenberg Alto das Nações (R$ 541.5M PSV, 41% sold) and Dot.230 by Triptyque (R$ 153M PSV, 46% sold), contributing significantly to results.

• 3Q24 sales of R$ 558M surpassed 2Q24, making it the second-best sales quarter in company history.

• Extraordinary dividend of R$ 150M approved, totaling R$ 181M in dividends to be paid in November 2024.

Financial highlights

• Net revenue for 3Q24 reached R$ 479M; 9M24 net revenue totaled R$ 1,134M, up 52.2% year-over-year.

• Gross profit for 3Q24 was R$ 163M, with a 34% gross margin, up 3.1 p.p. from 2Q24.

• Net income attributable to controlling shareholders was R$ 133M, up 49.5% sequentially and 239% year-over-year.

• EPS for 3Q24 was R$ 0.61, up 52.5% from 2Q24.

• Net debt increased to R$ 180.5M from R$ 122.7M in 2Q24, mainly due to new financing and dividend payments.

Outlook and guidance

• Upcoming 4Q24 launches include Lindenberg Reserva Paraíso (R$ 190M PSV), Alt Studios By Eztec (R$ 104M PSV), and Connect João Dias (R$ 72M PSV).

• Landbank expanded to R$ 13.6B after acquisitions and price changes; diversified across regions and segments.

• Management maintains a conservative approach to new land acquisitions, focusing on asset turnover and launch performance.

• The first phase of the São Caetano do Sul project (PSV R$ 1.9B) is planned for 2025, with payments for land acquisition spread until 2026.

• Company expects continued strong sales and launch activity, supported by a robust landbank and diversified project pipeline.