Schulz (SHUL4) Q3 2024 earnings summary

Executive summary

• Gross revenue reached R$1.8 billion and EBITDA R$283 million in the first nine months of 2024, with net cash of R$210 million, reflecting a 37.3% increase over December 2023.

• Net income for 3Q24 was R$77.8 million (up 1.9% YoY), with a net margin of 14.8%.

• EBITDA for 3Q24 was R$100.6 million (up 6.9% YoY), with a margin of 19.1%.

• Year-to-date net income reached R$208.7 million, with a 14% margin, and ROE for the last 12 months was 19.4%.

• The company distributed R$128.8 million in shareholder remuneration, a 122.5% increase YoY.

Financial highlights

• 3Q24 gross revenue: R$645.5 million (+6.2% YoY); net revenue: R$526.9 million (+6% YoY).

• 3Q24 gross profit: R$140.1 million (+16.8% YoY); gross margin: 26.6% (+2.4 pp YoY).

• 3Q24 net income: R$77.8 million (+1.9% YoY); net margin: 14.8% (-0.6 pp YoY).

• 3Q24 EBITDA: R$100.6 million (+6.9% YoY); EBITDA margin: 19.1% (+0.2 pp YoY).

• 9M24 net revenue: R$1.49 billion (+1.1% YoY); EBITDA: R$282.8 million (-1.8% YoY); net income: R$208.7 million (-2.8% YoY).

• Net cash at 3Q24: R$210 million, up from R$152.6 million at 2023 year-end.

Outlook and guidance

• Management expects continued focus on organic growth, innovation, and expansion in compressors and automotive divisions.

• Optimism for 4Q24 and 2025 in the truck and construction equipment markets, despite ongoing volatility in agribusiness.

• Strategic acquisition of Janus & Pergher to expand into industrial and medical gas generation.