Moura Dubeux Engenharia (MDNE3) Q3 2024 earnings summary

Executive summary

• Achieved record operational and financial results in 3Q24, with launches and net sales both exceeding R$1.1 billion, marking the best year in company history over 41 years.

• Net profit reached R$89 million in 3Q24, with a net margin of up to 17.7% and ROAE of 17%, and trailing 12-month net profit at R$240 million.

• Maintained a leading 25% market share in the Northeast, focusing on the Condominium business model and expanding into the middle-class segment via Mood.

• Launched BRL 1.1 billion in PSV in Q3, with total launches reaching BRL 2.5 billion over the last 12 months.

• Delivered eight projects YTD, with four more scheduled for delivery by year-end, all ahead of schedule.

Financial highlights

• Net revenue for 3Q24 reached BRL 502 million, up 66.2% year-over-year and 38% sequentially.

• Adjusted gross profit for 3Q24 was R$172 million, up 47.4% year-over-year, with a gross margin of up to 38.7%.

• Adjusted EBITDA for 3Q24 was up to R$117 million, with a margin of 18.2%.

• Net debt at quarter-end was R$64 million, with a net debt/equity ratio of 4.2%.

• Free cash flow was positive for the second consecutive quarter, closing Q3 with BRL 23 million.

Outlook and guidance

• Targeting a minimum ROAE of 20% in the near term, with expectations to surpass this in 2025.

• Over 20 project deliveries expected in the next 14 months, supporting strong cash generation.

• Landbank remains robust at R$9.3 billion, supporting future launches and growth.

• Expectation to launch over BRL 1 billion in closed condominium projects in 2025, with a potential ceiling of BRL 1.5 billion.

• Dividend payments to be made semi-annually, targeting at least BRL 100 million per year.