SIMPAR (SIMH3) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated gross revenue of R$45.2 billion in 2024, up 27% year-over-year, with net revenue from services at R$41.1 billion (+29% YoY), driven by organic growth, acquisitions, and long-term contracts.

• EBITDA reached R$10.5 billion (+28% YoY), with margin expansion to 25.9%, and adjusted consolidated net income was R$548 million, reversing the previous year's loss.

• Strategic reorganization separated VAMOS (rentals) and AUTOMOB (dealerships), creating Brazil's largest dealership group and focusing VAMOS on rental growth.

• Entered a new operational cycle focused on extracting value from built foundations, emphasizing operational efficiency and lower CapEx needs.

• Over R$62 billion invested in gross CAPEX over four years, with R$40 billion in net CAPEX after asset sales, supporting scale and future results.

Financial highlights

• Net revenue reached R$41.1 billion in 2024 (+29% YoY); gross revenue was R$45.2 billion (+27% YoY).

• EBITDA was R$10.5 billion (+28% YoY); adjusted net income was R$548 million (vs. -R$280 million in 2023).

• Record asset sales revenue of R$7.8 billion (+28% YoY); asset base exceeded R$42 billion.

• Consolidated net debt stood at R$40.7 billion, with liquidity of R$15.6 billion (3x short-term debt) and average debt maturity of 4.3 years.

• SG&A expenses over net revenue reduced from 10.2% in 2023 to 8.6% in 2024.

Outlook and guidance

• Management expects higher cash generation and lower investment needs in 2025, focusing on operational efficiency, capital optimization, and deleveraging.

• Focus remains on deleveraging, targeting a net debt/EBITDA ratio below 3x in the medium term.

• Key subsidiaries set ambitious targets for revenue, EBITDA, and portfolio growth by 2026.

• CS Infra targets EBITDA of R$180–250 million by 2026, with major projects on schedule.

• All companies are expected to deleverage while continuing to grow with less CapEx.