Gafisa (GFSA3) Q2 2024 earnings summary

Executive summary

• Achieved a turnaround from net loss in 2023 to net profit in 2Q24 and 1H24, reflecting improved operational and financial performance.

• Celebrated 70 years, delivering over 1,200 projects and 16 million m², with 97 awards.

• Strategic focus on high-end real estate, especially in prime Rio de Janeiro and São Paulo locations, with divestment from other segments and deleveraging.

• Delivered five projects in 2024/1H24 with a combined VGV/PSV of up to R$ 1.2 billion, including major developments in Rio and São Paulo.

• Reduced leverage and net debt significantly year-over-year.

Financial highlights

• Net revenue in 2Q24 reached R$ 284 million, up from R$ 178 million in 2Q23.

• Net operating revenue in 2Q24 was R$ 178.3 million, down 37.3% year-over-year.

• Net profit of R$ 25 million in 2Q24, reversing a net loss of R$ 91 million in 2Q23.

• Adjusted gross margin improved to 25% in 2Q24.

• Adjusted EBITDA of R$ 38.7 million in 2Q24, with a margin of 21.7%.

Outlook and guidance

• Next launch is an ultra-luxury residential project on Rua Oscar Freire, with an estimated VGV/PSV of R$ 800 million.

• Continued focus on high-end segment, operational efficiency, and reducing leverage.

• Oscar Freire project expected to enhance inventory quality and portfolio value.