Kepler Weber (KEPL3) Q3 2024 earnings summary

Executive summary

• Net revenues in 3Q24 reached R$439.1 million, up 8.2% year-over-year; year-to-date net revenues rose 13.6% to R$1,147.2 million compared to the same period in 2023.

• Adjusted EBITDA for 3Q24 was R$97.6 million, up 21.0% year-over-year, with a margin of 22.2%, a record level.

• Adjusted net income in 3Q24 was R$61.2 million, with a net margin of 13.9%; year-to-date adjusted net income was R$148.8 million, with a net margin of 13.0%.

• International Business and Ports & Terminals segments posted strong growth in 3Q24, up 63.6% and 442.0% year-over-year, respectively.

• Cash and investments at quarter-end totaled R$457.9 million, with net cash at R$162.9 million, supporting capex, R&D, and shareholder returns.

Financial highlights

• 3Q24 net revenues: R$439.1 million (+8.2% YoY); 9M24: R$1,147.2 million (+13.6% YoY).

• Adjusted EBITDA: R$97.6 million in 3Q24 (+21.0% YoY); margin 22.2% (+2.3 p.p. YoY).

• Adjusted net income: R$61.2 million in 3Q24 (-0.5% YoY); 9M24: R$148.8 million (+6.0% YoY); margin 13.9% in 3Q24 (-1.2 p.p. YoY), 13.0% in 9M24 (-0.9 p.p. YoY).

• ROIC at 42.1% in 3Q24.

• Dividend and interest on equity payments in 3Q24 totaled R$45.5 million.

Outlook and guidance

• Management expects robust results for the remainder of 2024, supported by a strong order portfolio and competitive advantages.

• Demand remains positive for projects in agribusiness, ports, terminals, and services, with operational improvements supporting profitability.

• Anticipates continued prioritization of storage solutions due to Brazil's logistics deficit and large crop expectations.