Marcopolo (POMO4) Q3 2024 earnings summary

Executive summary

• Net revenue rose 43.3% year-over-year to R$2,314.8 million in 3Q24, driven by higher volumes in Brazil and international markets, with total production reaching 4,133 units, up 37.8% from 3Q23.

• Net income more than doubled to R$335.7 million, with a margin of 14.5%, reflecting operational leverage and improved international performance.

• EBITDA increased 123.4% year-over-year to R$466.0 million, with a margin of 20.1%, supported by non-recurring gains from Argentine subsidiaries.

• Market share in Brazilian bus body production reached 47.6% in 3Q24, with notable gains in the road segment.

• International operations excelled, notably in Australia, Mexico, and South Africa, with new product launches supporting growth.

Financial highlights

• Net operating revenue for 3Q24 was R$2,314.8 million, up 43.3% year-over-year; 9M24 revenue was R$5,927.5 million, up 27.9%.

• Gross profit grew 55.3% to R$576.8 million, with gross margin improving to 24.9%.

• EBITDA margin expanded by 7.2 p.p. to 20.1%; net margin rose 4.5 p.p. to 14.5%.

• Earnings per share for 3Q24 reached R$0.297, up 72.6% year-over-year.

• Net financial debt was R$1,110.5 million as of 09/30/2024, with the industrial segment at R$135.0 million (0.1x LTM EBITDA).

Outlook and guidance

• Order book remains healthy, with strong demand in charter and heavy body segments and positive seasonality expected to support a strong start to 2025.

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

• Micro and Volares segments stable; Caminho da Escola program deliveries to continue into 4Q24 and 2025, with potential volume shifts due to tender extensions.

• Ongoing investments in innovation and decarbonization, including new product launches and factory modernization.

• PAC program could accelerate sales of Euro 6 and electric models in 2025.