Gafisa (GFSA3) Q3 2024 earnings summary

Executive summary

• Announced a strategic partnership with Allard to launch the Allard Oscar Freire ultra-luxury project in São Paulo, with a projected VGV of R$800 million, the highest in company history.

• Delivered five projects in 2024, totaling up to R$1.2 billion in VGV/PSV, including high-end developments in São Paulo and Rio de Janeiro.

• Achieved a 23 percentage point reduction in leverage year-over-year, with net debt down 20% and leverage at 54% in 3Q24.

• Gross sales rose 14% in the quarter, driven by increased sales velocity and reduced inventory.

• Celebrated 70 years with cultural initiatives and reinforced commitment to high-end, sustainable developments.

Financial highlights

• Net revenue grew 24% in the quarter compared to the same period last year.

• Net operating revenue reached R$220.7 million in 3Q24, up 23.8% from 2Q24 but down 22.9% year-over-year.

• Adjusted net profit for the last 12 months was R$49 million, a R$42 million improvement over 3Q23.

• Adjusted EBITDA for 3Q24 was R$36.9 million, up 14.6% sequentially and reversing a negative result in 3Q23.

• Gross margin and net margin showed improvement, with adjusted margins rising sequentially and gross margin (adjusted) at 20.3% in 3Q24.

Outlook and guidance

• Preparing for a new cycle of luxury project launches, focusing on exclusive locations in São Paulo and Rio de Janeiro.

• Expanding operations as a construction company, leveraging expertise to generate recurring revenue through partnerships.