Moura Dubeux Engenharia (MDNE3) Q4 2024 earnings summary

Executive summary

• Net profit reached R$251 million in 2024, up 61.3% year-over-year, with a net margin of 16% and ROAE of 18%.

• Record launches and sales in 2024, with net launches up 57.8% to R$2.5 billion and net sales up 61.2% to R$2.4 billion.

• Celebrated five years since IPO, with launches growing nearly 400% since 2020 and significant expansion into new regions and product lines, including Mood and Única.

• Maintained a robust landbank of R$9.1 billion in PSV and delivered 8 projects in 2024.

• Disciplined capital allocation, low leverage, and recurring dividend policy, with R$55 million paid and R$50 million approved for 2024.

Financial highlights

• Net revenue for 2024 was R$1.6 billion, up 36.4% year-over-year; Q4 revenue was R$368 million, up 30% from Q4 2023.

• Gross profit for 2024 was R$577 million, with a consolidated margin of 35.5%.

• Adjusted EBITDA reached R$288.5 million in 2024, up 42.3% year-over-year, with an 18.4% margin.

• Net debt to equity at year-end was 7.0%, with total debt at R$511 million.

• Free cash flow (ex-dividends) was positive at R$12.2 million in 4Q24; full-year cash burn excluding dividends was R$15.5 million.

Outlook and guidance

• Targeting R$3.5 billion in annual sales and launches over the next five years, with continued focus on closed condominium, Mood, and Minha Casa, Minha Vida (Única) projects.

• Aiming for annual net income above R$500 million and ROAE of 20%.

• Expansion into Minha Casa, Minha Vida segment with Única, targeting R$1.2 billion in launches over five years.

• If government expands Minha Casa, Minha Vida to higher income brackets, Mood and Única could accelerate growth.