Tecnisa (TCSA3) Q2 2024 earnings summary

Executive summary

• 2Q24 gross sales on the project-share basis rose 128% YoY to R$223m; backlog gross profit reached R$216m, up 52.3% YoY.

• Landbank PSV was R$2.821bn attributable to the stake, including R$2.2bn in Jardim das Perdizes; 2024–2026 launch guidance totaled R$5.3bn PSV.

• 2Q24 net loss was R$31.3m; net debt/equity reached 111.0%. Adjusted cash generation was R$26.2m.

Financial highlights

• Net operating revenue was R$178.5m in 2Q24, up 95.9% YoY; H1 revenue was R$265.9m, up 18.3% YoY.

• 2Q24 gross loss was R$5.7m; adjusted gross profit including equity-accounted projects was R$32.4m, with a 14.0% margin.

• Net loss was R$31.3m in 2Q24 versus net income of R$4.6m in 2Q23; H1 net loss was R$52.0m.

• Adjusted EBITDA was a loss of R$1.8m in 2Q24 versus income of R$20.9m in 2Q23; H1 adjusted EBITDA was income of R$2.5m.

• Adjusted cash generation was R$26.2m; cash, equivalents and financial assets totaled R$224.7m at quarter-end.

Outlook and guidance

• 2024–2026 launch PSV guidance totaled R$5.3bn, including R$2.8bn attributable share, with expected gross margins of 46%–50%; annual targets were R$1.7bn, R$1.5bn and R$2.1bn, respectively.

• Jardim das Perdizes launches are planned across 2024–2026; Reserva Flamboyant preliminary PSV was R$606m, with a 52.5% share.

• Two 2Q24 project deliveries totaled R$303.8m PSV; 2024 deliveries are expected to help reduce indebtedness.

• Liquidity measures may include selling completed units and other assets, assigning receivables, and receiving dividends from projects nearing completion.