Motiva Infraestrutura de Mobilidade (MOTV3) Q3 2024 earnings summary

Executive summary

• Achieved record traffic growth across all platforms: toll roads up 4.4%, urban mobility up 5.1%, airports up 8.8% compared to 3Q23, reflecting robust demand in all business segments.

• Adjusted net income rose 12% year-over-year to R$560 million in 3Q24, with adjusted EBITDA up 3.2% to R$2.2 billion.

• Announced R$304 million in dividends to be paid in November 2024.

• Won the Rota Sorocabana concession, securing a 30-year contract with a R$1.6 billion grant, adding 460 km of toll roads.

• Recognized among Brazil's top employers and advanced generative AI and digital transformation initiatives.

Financial highlights

• Adjusted consolidated net revenue grew 10.7% year-over-year to R$3.78 billion in 3Q24; 9M24 up 10.3% to R$10.75 billion.

• Adjusted EBITDA reached R$2.2 billion in 3Q24 (+3.2% YoY); 9M24 up 7.0% to R$6.27 billion.

• Supplemental revenues increased 21% year-over-year, confirming the strategy to grow non-tariff income.

• Net debt/adjusted EBITDA at 3.1x; CCR Holding net debt down 8% year-over-year.

• CAPEX in 3Q24 was R$2.1 billion, up 57.9% year-over-year; 9M24 CAPEX reached R$5.0 billion.

Outlook and guidance

• Optimistic about future opportunities, especially after winning the Rota Sorocabana concession.

• CapEx execution projected at 95% physical and 80% financial for 2024, totaling around R$7 billion.

• Targeting OpEx to net revenue ratio below 38% by 2026, with cost reduction initiatives underway.

• Focus on efficiency, digitalization, and sustainability, including a commitment to carbon neutrality by 2035.

• Selective participation in new bid tenders, prioritizing strict capital allocation and risk management.