Moura Dubeux Engenharia (MDNE3) Q2 2024 earnings summary

Executive summary

• Achieved record results in Q2 and H1 2024, with the best quarter in company history and strong operational consolidation.

• Net launches reached R$637 million in Q2 2024, up 83.8% sequentially, and net sales hit R$492 million, up 40.3% year-over-year.

• Net profit for Q2 2024 was R$75 million, with a net margin of 19.1% and ROAE of 15%.

• Focused on disciplined growth, profitability, and shareholder returns, maintaining low leverage with net debt at 6.0% of equity.

• Launched the Mood brand targeting the medium price market, contributing significantly to sales and launches.

Financial highlights

• Net revenue reached R$392.1 million in Q2 2024, up 25.2% year-over-year and 27.1% sequentially.

• Gross profit was R$152 million, up 40% from Q1 2024, with a gross margin of 38.7%.

• Adjusted EBITDA for Q2 2024 was R$89.9 million, with a margin of 22.9%.

• Net profit for Q2 2024 was R$75 million, with a net margin of 19.1%.

• Net debt to equity at 6.0% as of Q2 2024, with net cash position at R$87.7 million.

Outlook and guidance

• Management expects continued strong launches and sales in H2 2024, projecting the best year in company history.

• Projected revenue for 2024 to reach R$1.6 billion, with gross profit estimated above R$500 million.

• Dividend payments of R$140 million expected in 2024, with at least R$100 million annually going forward.

• Focus remains on profitability and quality over volume, with leverage targeted below 20% of equity.