Moura Dubeux Engenharia (MDNE3) Q3 2024 earnings summary

Executive summary

• Achieved record operational and financial results in 3Q24, with launches and net sales exceeding R$1.1 billion in the quarter and nearly R$2 billion in net sales and adhesions in the first nine months of 2024, driven by the Condominium segment and the Mood business line.

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

• Net profit reached R$89 million in 3Q24, with a net margin of 17.7% and ROAE of 17%, and R$206 million net profit in 9M24, up 69.1% year-over-year.

• Announced dividend distribution of R$55 million (R$0.65 per share), reflecting strong cash generation and low leverage.

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

Financial highlights

• Net revenue for 3Q24 was R$502 million, up 66.2% year-over-year and 38% sequentially; 9M24 net revenue reached R$1,202.3 million, up 38.5% year-over-year.

• Gross profit in 3Q24 was R$166.1 million (+50.7% YoY), with a gross margin of 33.1%; adjusted EBITDA was R$91.4 million (+63.9% YoY), with an 18.2% margin.

• Net profit for 3Q24 was R$89 million (+92.6% YoY), with a net margin of 17.7%; trailing 12-month net profit at R$240 million.

• Net debt at quarter-end was R$64.3 million, with a net debt/equity ratio of 4.2%, down 1.8pp from 2Q24.

• Free cash flow was positive at R$23.4 million for the quarter.

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.

• Inventory of R$2.2 billion provides 12 months of sales coverage; robust pipeline for 2025 and 2026, including a major project in Fortaleza (R$750 million Net PSV).

• More than half of the 2025 business plan is ready to launch, awaiting optimal market timing.

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