Schulz (SHUL4) Q2 2024 earnings summary

Executive summary

• EBITDA grew 16.1% in 2Q24, reaching R$101 million, with a margin of 19.9%. Net revenue for 1H24 was R$963.3 million, and net income reached R$130.9 million, with a margin of 13.6%.

• The company completed the acquisition of Janus & Pergher Ltda, expanding into gas generation equipment for hospital and industrial use.

• Return on equity for the last 12 months was 19.8%.

Financial highlights

• Net revenue in 2Q24 was R$507.5 million, up 4.4% year-over-year; 1H24 net revenue was R$963.3 million, down 1.4% from 1H23.

• Net income in 2Q24 was R$70.5 million, up 12.9% year-over-year; 1H24 net income was R$130.9 million, down 5.4% from 1H23.

• EBITDA in 2Q24 was R$101 million (margin 19.9%), and in 1H24 R$182.2 million (margin 18.9%).

• Gross margin in 2Q24 was 27.5%, up 1.9 p.p. year-over-year.

• Operating cash flow in 1H24 was R$199.2 million.

Outlook and guidance

• Management expects continued recovery in the truck segment and moderate optimism in construction and agricultural machinery for 2H24.

• The acquisition of Janus & Pergher is expected to generate synergies and expand the product portfolio.