Marcopolo (POMO4) Q2 2024 earnings summary

Executive summary

• Net revenue grew 43.4% year-over-year in 2Q24 to BRL 1,956.7 million, driven by strong domestic and international sales volumes, with improved margins and operational efficiency.

• EBITDA surged 142% year-over-year to BRL 382.3 million (19.5% margin), and net income increased 78.6% to BRL 250.9 million (12.8% margin).

• Production reached 3,998 units, up 32.8% from 2Q23, with market share in Brazilian bodywork production climbing to 48.4%.

• Strategic focus on efficiency, product innovation (notably the G8 line), electrification, and international expansion drove results.

• Integration of best practices and investments in automation and modernization are key priorities.

Financial highlights

• Net operating revenue for 2Q24 was BRL 1,956.7 million (+43.4% YoY); 1H24 revenue was BRL 3,612.8 million (+19.7% YoY).

• Gross profit in 2Q24 was BRL 509.9 million (26.1% margin), up 84.6% year-over-year.

• EBITDA for 2Q24 was BRL 382.3 million (19.5% margin), up from BRL 158 million (11.6%) in 2Q23.

• Net income in 2Q24 was BRL 250.9 million (12.8% margin), compared to BRL 140.5 million (10.3%) in 2Q23.

• Net debt/EBITDA ratio was 0.4x, reflecting a strong balance sheet.

Outlook and guidance

• Management expects continued volume growth in 2H24, supported by a healthy order book, operational leverage, and recovery in international operations.

• Margin improvement potential of 4-5 percentage points identified through efficiency gains and optimal product mix.

• Investments in automation, product innovation, and electric models will intensify in 2H24.

• Urban segment volumes are expected to improve as production efficiency increases.

• International operations, especially in Mexico, Australia, and South Africa, are expected to maintain positive momentum.