Tecnisa (TCSA3) Q3 2023 earnings summary

Executive summary

• Gross sales reached R$435 million in 9M23, up 25.5% YoY; 3Q23 gross sales were R$161 million, up 33% QoQ.

• 9M23 consolidated net income was R$1.356 million versus a R$14.592 million loss in 9M22; Q3 consolidated net loss was R$8.101 million.

• Strategic priorities included developing a R$4.3 billion landbank, controlling administrative costs, improving profitability and deploying customer-facing AI.

Financial highlights

• Consolidated revenue was R$310.618 million in 9M23 versus R$160.191 million in 9M22; net operating revenue was reported at R$315.0 million, up 96.7% YoY.

• Adjusted gross profit reached R$77.6 million in 9M23, with a 25.0% margin, up 7.1 p.p. YoY; adjusted EBITDA rose 122.5% to R$55.8 million.

• Q3 adjusted gross profit was R$12.7 million, with a 14.8% margin; reported gross profit was R$2.8 million, with a 3.3% margin.

• Q3 adjusted EBITDA was R$9.3 million, with a 10.9% margin; reported EBITDA was a loss of R$0.8 million.

• 9M23 net income attributable to owners was R$0.736 million; Q3 loss attributable to owners was R$7.987 million.

Outlook and guidance

• Planned Jardim das Perdizes launches include Recanto Oliveiras, with R$570 million preliminary PSV and a 57.5% share, and Bosque Cerejeiras, with R$430 million PSV and a 57.5% share.

• Belaterra launched in November with R$211 million PSV, 60 units of 258 m² and 28% of private area sold by the report date.

• Approved projects totaled R$1.303 billion PSV; another R$807 million awaited approval permits.

• Management expected launches and construction progress to support margin recovery; project completions from 4Q23 through 2024–2025 were expected to contribute to cash generation.