Romi (ROMI3) Q4 2024 earnings summary

Executive summary

• Order intake and backlog grew strongly in 4Q24 and 2024, with robust demand for machine rental and fintech solutions, and significant contributions from ROMI and BW Machines units.

• Adjusted EBITDA for 4Q24 reached R$79.1 million (17.3% margin), and for 2024 was R$177.2 million (14.4% margin), with strong cash generation in Q4.

• Net operating revenue for 4Q24 was R$260.2 million (up 20% YoY), and for 2024 was R$1,227.1 million, stable year-over-year.

• The company maintained investments in innovation, technology, and employee development, with new product launches and digitalization initiatives.

• Vila Romi Residence project completed, with 344 of 350 lots sold and limited future impact on accounts receivable and cash generation.

Financial highlights

• Q4 2024 EBITDA was R$79.1 million (17.3% margin); adjusted EBITDA for 2024 was R$177.2 million (14.4% margin), down 24.4% YoY.

• Net operating revenue for 4Q24 was R$260.2 million (up 20% YoY); for 2024, R$1,227.1 million, stable YoY.

• Net income for 2024 was R$114.3 million (9.3% margin), down 30.1% YoY; Q4 net income ranged from R$24.9 million to R$49.3 million depending on adjustments.

• Gross margin in 4Q24 was 30.1%, and for 2024 was 29.5%, both slightly up year-over-year.

• Net cash position at year-end was negative R$102.7 million, reflecting investments and dividend payments.

Outlook and guidance

• Management expects continued growth in order intake and backlog, supported by machine rental and fintech credit solutions, with optimism for ROMI and BW Machines in 2025.

• Gradual recovery anticipated in Cast Iron Parts as agricultural inventories normalize and new energy projects ramp up.

• Focus remains on sustainable growth, innovation, and operational efficiency.

• Management notes forward-looking statements are subject to risks and uncertainties.