JSL (JSLG3) Q3 2024 earnings summary

Executive summary

• Achieved organic growth of 18% year-over-year in 3Q24, with gross revenue reaching R$2.8 billion and adjusted net income up 25% to R$72.7 million, reflecting strong operational efficiency and sector leadership.

• Adjusted EBITDA rose 19% to R$466.4 million, with a margin of 20.4%, and free cash flow after growth hit a record R$395 million.

• Signed R$2.2 billion in new contracts in 3Q24, totaling R$4.5 billion for the year, and added 27 new customers, ensuring future revenue visibility.

• Awarded "Best Company of the Year" in the logistics sector by EXAME.

• Maintained sector leadership with a diversified portfolio, strong cross-selling, and high specialization in customer supply chains.

Financial highlights

• Net revenue from services was R$2.28 billion, up 18% year-over-year; total net revenue reached R$2.35 billion, up 17%.

• Adjusted EBITDA margin improved by 0.2 p.p. year-over-year to 20.4%; adjusted EBIT grew 9.5% to R$323.8 million.

• ROIC running rate stood at 15.4%, with net profit margin benefiting from lower debt spread.

• Free cash flow after growth was R$395 million, the highest since IPO.

• Leverage reduced to 2.94x Net Debt/EBITDA, with R$2.3 billion in cash and R$756 million in revolving credit lines.

Outlook and guidance

• Management expects continued improvement in results and profitability, supported by the ramp-up of major projects and a robust pipeline of long-term contracts.

• Contracted growth ensures revenue visibility through 2024, with a focus on organic expansion and cross-selling.

• CapEx for 2025 expected to remain close to 2024 levels, with no major changes anticipated.

• Deleveraging remains a priority to mitigate interest rate impacts.