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

Executive summary

• Achieved record net revenue of R$ 479 million and gross profit of R$ 163 million in 3Q24, with 9M24 net revenue reaching R$ 1,134 million, both historical highs, driven by successful launches and high sales velocity.

• Net launches in 3Q24 totaled R$ 694 million and net sales R$ 501 million, with year-to-date launches at R$ 1.34 billion and net sales at R$ 1.3 billion.

• Major launches included Lindenberg Alto das Nações (R$ 541.5M–R$ 542M PSV, 41% sold) and Dot.230 by Triptyque (R$ 153M PSV, 46% sold), significantly contributing to results.

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

• Maintained high delivery rates, with 77% of units sold and robust delivery schedule for 2024.

Financial highlights

• Net revenue for 3Q24 reached R$ 478.9 million (up 90% YoY); 9M24 net revenue totaled R$ 1,134 million (up 52% YoY).

• Gross profit for 3Q24 was R$ 162.7 million, with a 34% gross margin, up 3.1 p.p. from 2Q24.

• Net income attributable to controlling shareholders was R$ 132.6 million in 3Q24 (up 239% YoY), with net margin at 27.7%.

• EPS for 3Q24 was R$ 0.61, up 52.5% from 2Q24 and 238.9% from 3Q23.

• Operating cash flow was -R$ 22.1 million in 9M24, reflecting higher investments 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).

• First phase of São Caetano do Sul project (PSV R$ 1.9 billion) planned for 2025, with phased land payments through 2026.

• Landbank expanded to R$ 13.6B after acquisitions and price changes; company maintains a conservative approach to new land acquisitions.