Santos Brasil Participações (STBP3) Q2 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in Q2 2024, with net revenue reaching R$703 million, up 39% year-over-year, and net income rising 82%, driven by record container handling at Tecon Santos and robust organic expansion.

• Recurring EBITDA increased 57% year-over-year to R$348.3 million, with margin up 5.7 percentage points to 49.6%.

• Container throughput grew 23.4% year-over-year, led by Tecon Santos (+24.4%) and Tecon Imbituba (+58.9%).

• Investments in capacity, headcount, and ESG initiatives are positioning the company for sustained growth, with normalization of personnel costs expected by Q4 2024.

• Capex totaled R$101.2 million in Q2 2024, focused on terminal expansion and modernization.

Financial highlights

• Net revenue reached R$703 million in Q2 2024, up 39% year-over-year, driven by higher volumes in most business units.

• Recurring EBITDA was R$348.3 million, a 57% increase year-over-year, with a margin near 50%, up 5.7 percentage points.

• Net income grew 82% to R$171.7 million, with a net margin of 24.4%, up 5.8 percentage points year-over-year.

• Capex for H1 2024 totaled R$217 million, with expectations for intensified investment in H2 to reach the R$700–800 million annual target.

• Net debt stood at R$228.5 million at quarter-end, with leverage at 0.21x proforma EBITDA.

Outlook and guidance

• Positive outlook for H2 2024, with continued strong container volumes, especially at Tecon Santos, and recovery expected at Tecon Vila do Conde.

• Expansion of Tecon Santos to reach 3 million TEU capacity by 2026 and Itaqui liquid bulk terminal expansion underway.

• Anticipated Capex concentration in H2 2024 to meet full-year investment targets.

• 2025 volume growth expected at 3–4% above 2024 trends, with additional capacity coming online.

• EBITDA margin expansion expected as new hires complete training and operational leverage improves by Q4 2024.