Movida Participações (MOVI3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of R$3.78 billion in 3Q24, up as much as 41.6% year-over-year, with all-time highs in EBITDA (R$1.25 billion), EBIT (R$701 million), and net income (R$91 million), marking a significant turnaround from prior losses.

• Adjusted net income reached R$91 million in 3Q24, a 100% improvement year-over-year, and R$232 million in 9M24, the highest in two years.

• Operational turnaround driven by disciplined execution, strategic price recalibration, cost containment, and productivity gains across all business lines.

• All 2024 operational and financial guidance targets for RAC, Used Cars, and GTF were met ahead of schedule.

• ROIC improved to 12.4% in 3Q24, up 4.4 p.p. from 2023, exceeding the average cost of debt by 3.7 p.p.

Financial highlights

• Net revenue grew up to 42% year-over-year; rental revenue up 35%; operating fleet expanded 17%.

• EBITDA increased up to 48.3% year-over-year, with rental EBITDA margin at 70.3% (+6.6 p.p.), and GTF margin at 76%.

• Adjusted EBIT was R$701 million in 3Q24, up 54% year-over-year.

• Used car sales hit a record 30,572 units in 3Q24, up 49.1% year-over-year, with net revenue up 48.4%.

• Net debt ended 3Q24 at R$14.16 billion, with a cash position of R$4.0 billion; net debt/EBITDA reduced to 3.1x (2.7x annualized).

Outlook and guidance

• Achieved all 2024 guidance targets ahead of schedule; guidance discontinued as all targets met.

• Expect modest fleet growth of 2%-4% in 2025 due to higher interest rates, focusing on operational efficiency and price adjustments to sustain margins and ROIC.

• Ongoing price recalibration in both Rent-a-Car and GTF segments to continue supporting profitability.

• GTF backlog of R$6.9 billion ensures future revenue growth and stability.

• No substantial fleet expansion planned; emphasis on value creation through efficiency and selective contract growth.