Orizon Valorização de Resíduos (ORVR3) Q4 2024 earnings summary

Executive summary

• Achieved significant growth in 2024, with a 9% year-over-year increase in gate fee prices and 4% waste volume growth, consolidating leadership in waste management and expanding into energy transition and circular economy solutions.

• Expanded to 17 ecoparks across 12 states, reinforcing national leadership and supported by strategic acquisitions and favorable regulatory changes.

• Advanced biomethane projects, with Jaboatão ready for commissioning, five new projects underway, and long-term contracts secured with partners including Gás Verde, Petrobras, and Neogás.

• Registered first carbon credit projects under Gold Standard®, enabling recurring sales of 1.2–1.5 million credits per year.

• Strengthened ESG initiatives, with expanded social projects and improved governance practices.

Financial highlights

• Net revenue for 2024 reached R$903.5 million, up 16% year-over-year, driven by higher prices, increased volumes, and growth in biogas, biomethane, and carbon credits.

• EBITDA totaled R$433.6 million, up 21–38% year-over-year, with a margin of 48%.

• Net income for 2024 was R$74.5 million, a 48% increase from the previous year.

• Gross margin improved to 60.9% in 2024 from 51.7% in 2023.

• CAPEX in Q4 2024 totaled up to R$190.9 million, focused on landfill expansions, biomethane, and energy recovery projects.

Outlook and guidance

• 2025 expected to be a strong year with continued price and volume growth, robust inorganic expansion, and new biomethane plants coming online.

• Focus on monetizing biogas, biomethane, and carbon credits, with ongoing evaluation of strategic acquisitions.

• Circular economy initiatives to advance with greater involvement from local governments and regulatory support.

• Optimism for increased biomethane demand, especially from Petrobras and other large buyers.

• Carbon credit sales division restructured, with a strong backlog and international client focus.