Marcopolo (POMO4) Q4 2024 earnings summary

Executive summary

• Net revenue in 4Q24 reached R$2,666.3 million, up 30.1% year-over-year, with EBITDA of R$461.4 million (margin 17.3%) and net income of R$318.8 million (margin 12.0%), reflecting strong domestic and international performance, especially in Mexico, Argentina, and South Africa.

• Total production was 3,867 units in 4Q24, up 8.6%, and the company maintained leadership in the Brazilian bus body market with a 47.8% share.

• Full-year 2024 net operating revenue grew 28.6% to R$8,593.8 million, with record net income of R$1,222.4 million, up 50.8% from 2023.

• Major events included a 20% share bonus, corporate reorganization in Argentina, and acquisition of a 40% stake in Reborn Electric Motors SpA.

Financial highlights

• Gross profit for 4Q24 was R$659.3 million (margin 24.7%), and full-year gross profit rose 38.5% to R$2,131.4 million (margin 24.8%).

• EBITDA margin for 2024 was 18.9%, up 4.7 p.p. from 2023; net margin for 2024 was 14.2%.

• Net debt/EBITDA (industrial segment) was 0.1x, indicating low leverage.

• Dividend payout ratio was 50.4%, with R$580.7 million distributed in 2024.

• Cash and equivalents at year-end were R$2,098.6 million, with net financial liabilities at R$1,158.1 million.

Outlook and guidance

• Management projects continued volume growth in 2025, supported by a strong backlog, healthy demand in road and micro segments, and anticipated recovery in the urban and export markets.

• Electric vehicle volumes are projected to surpass 2024 levels, with maturing products and increasing orders from cities.

• International operations, especially in Mexico, Argentina, South Africa, and Australia, are expected to maintain or improve results.

• Caminho da Escola program volumes expected to remain constant in 2025, with more even distribution across quarters and deliveries scheduled for early 2026.

• Focus remains on efficiency, productivity, and leveraging external unit performance.