Rumo (RAIL3) Q2 2024 earnings summary

Executive summary

• Transported volume reached 20.9 billion RTK in 2Q24, up 3% year-over-year, with market share gains in key regions and ports despite adverse weather in the South.

• Net revenue grew 29% to R$3,575 million, driven by higher volumes and yields across all operations.

• Adjusted EBITDA rose 48% to R$2,142 million, with margin expanding to 60% due to improved yields and cost management.

• Adjusted net profit was R$721 million, over four times higher than 2Q23, excluding non-recurring items.

• Two non-recurring events: a R$2,575 million impairment provision at Malha Sul due to extreme weather, and a R$169 million gain from terminal divestments.

Financial highlights

• Net revenue: R$3,575 million in 2Q24 (+29% YoY); Adjusted EBITDA: R$2,142 million (+48% YoY); margin at 60%.

• Adjusted net profit: R$721 million; Capex: R$1,176 million (+70% YoY), with accelerated investments in expansion projects.

• Financial leverage improved to 1.5x net debt/Adjusted EBITDA LTM, with net debt at R$10.1 billion.

• Operating ratio improved to 55% from 72% YoY; diesel consumption per 1,000 GTK improved by 1.5%.

• Cash generation after recurring capex reached R$1,955 million (+42% YoY).

Outlook and guidance

• 2024 guidance: transported volume 80–82 billion RTK, Adjusted EBITDA R$7,600–R$7,900 million, Capex R$5,400–R$5,700 million.

• Soybean and corn production in Mato Grosso expected to increase due to improved yields and expanded planted area.

• Guidance excludes one-off effects and does not consider potential M&A, divestments, or new concessions.

• Volumes in the south expected to remain lower due to ongoing disruption of the Tronco Sul railway.

• Continued focus on operational efficiency, capacity expansion, and risk management.