JSL (JSLG3) Q2 2024 earnings summary

Executive summary

• Gross revenue reached R$2.53 billion in Q2 2024, up 17% year-over-year, with net revenue at R$2.14 billion, driven by balanced growth in both Asset Light and Asset Heavy operations.

• Adjusted EBITDA was R$398.2 million, up 11% year-over-year, with a margin of 19.2%.

• Adjusted net income was R$33.0 million, reflecting a 21% comparable growth year-over-year, but impacted by project implementation costs and capital structure adjustments.

• R$1.3 billion in new contracts were signed in Q2 2024, supporting future revenue growth and reinforcing confidence in continued results.

• Major project deployments and expansion into Ghana, along with recognition for operational excellence, reinforce market position.

Financial highlights

• Net revenue for Q2 2024 was R$2.14 billion, a 16.5% increase year-over-year.

• Adjusted EBITDA margin was 19.2%; reported EBITDA was R$544 million.

• ROIC running rate was 15.4% in Q2 2024.

• Net capex for Q2 2024 was R$151.4 million, with most annual investments already executed.

• Leverage at quarter-end was 3.04x Net Debt/EBITDA, with cash and equivalents at R$2.4 billion.

Outlook and guidance

• Management expects continued revenue and margin growth as new contracts mature and project deployments begin generating returns.

• Contracted revenue for 2024 reached R$2.3 billion, with a strong pipeline for the second half.

• CapEx is expected to decrease in the second half, with most investments already made.

• Deleveraging is a priority, with expectations for improved cash flow and reduced leverage in H2 2024.

• Ramp-up of major projects (Cerrado, Ghana, Northeast) began in June and are expected to reach normal margins in the coming months.