Grupo Traxión (TRAXIONA) Q3 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenues of Ps. 7,530 million, up 17.9% year-over-year, and adjusted EBITDA of Ps. 1,394 million, up 18.7%, with an 18.5% margin, the highest in company history, driven by strong operational and financial performance.

• Announced binding agreement to acquire Solistica for Ps. 4,060 million, expected to make the logistics and technology division over 50% of consolidated revenues in 2025 and expand presence in northern Mexico.

• Focused on asset-light strategy, operational efficiencies, and expanding presence in key regions, including new 3PL cross-dock facility in San Diego.

Financial highlights

• Operating cash flow increased significantly, reaching Ps. 1,474 million for the quarter, up 203.9% year-over-year, supported by improved working capital management.

• Ended Q3 with a cash position above Ps. 1,362 million and invested roughly Ps. 1,021 million in organic growth and fleet expansion.

• Leverage ratio remained stable compared to Q2, with net debt/EBITDA at 2.15x and a stronger cash position.

• Non-recurring expenses related to restructuring and efficiencies program were Ps. 139 million in Q3 and expected to be Ps. 20–30 million in Q4.

• Tax rate for the first nine months was around 30%, expected to remain at this level.

Outlook and guidance

• Solistica acquisition expected to close in 1Q25, funded by cash and existing credit, with leverage remaining below 2.5x net debt/EBITDA.

• Strong demand trends for 2025, with many contracts already closed and a conservative CapEx outlook focused on logistics and technology.

• Efficiency program anticipated to yield significant results in 4Q24 and throughout 2025.

• Margins expected to remain stable or improve in Q4 and into next year, especially as mobility division costs normalize.