EZTEC Empreendimentos e Participações S.A. (EZTC3) Q4 2024 earnings summary

Executive summary

• Record 2024 net sales reached R$1.695bn and gross sales R$1.9bn; launches totaled R$1.6bn, up 63.3% YoY.

• Net revenue was R$1.561bn, gross profit R$533m and net income R$404.6m for 2024.

• Nine projects launched; 87% of VGV was in medium-high and high-end segments, while affordable housing launches resumed.

• Management plans a record R$2.6bn launch program for 2025 and expects the largest delivery year, amid a challenging macroeconomic backdrop.

Financial highlights

• 4Q24 net revenue was R$426.6m, including R$99m from ready inventory sales; full-year revenue rose 44.1% YoY.

• 4Q24 gross profit was R$160m and net income R$126.6m; full-year gross profit reached R$533m.

• 2024 EPS was R$1.85 versus R$1.10 in 2023; operating cash flow was -R$29m versus -R$229m in 2023.

Outlook and guidance

• 2025 launch plans total R$2.6bn across income segments; Q1 and Q2 each target three launches, subject to quarterly review.

• 2025 deliveries are expected to total R$2.6bn, with more construction sites and higher delivery volumes to manage.

• Management expects margin gains from lower G&A as sales scale, engineering efficiencies and INCC effects.