Tecnisa (TCSA3) Q3 2024 earnings summary

Executive summary

• 9M24 launches reached R$1.621bn in PSV, 95% of 2024 guidance; Jardim das Perdizes landbank potential PSV was R$4.8bn, including R$2.7bn attributable share.

• 3Q24 gross sales rose 51.2% YoY to R$244m at 100% participation; adjusted cash generation was R$86m in 9M24.

• 3Q24 consolidated net loss was R$42.877m, versus R$8.101m in 3Q23; Belaterra litigation and cancellations weighed on results.

Financial highlights

• Consolidated net operating revenue was R$87m in 3Q24, up 1% YoY; 9M24 revenue was R$353m, up 14%.

• Adjusted gross profit including equity-method projects was R$25m in 3Q24 and R$75m in 9M24; excluding financial charges allocated to cost of sales, adjusted gross profit was R$0.4m in 3Q24.

• Q3 consolidated gross loss was R$11.326m, versus R$2.817m gross profit in Q3 2023; 9M consolidated gross loss was R$24.777m.

• Adjusted EBITDA was a R$12m loss in 3Q24 and a R$10m loss in 9M24; 3Q net loss was R$43m, versus R$8m in 3Q23.

• 9M revenue was also reported at R$494m, up 39% YoY; gross sales attributable share was R$160m in Q3 and R$565m in 9M, up 62%.

Outlook and guidance

• Planned Jardim das Perdizes launches for 2024–2026 total R$5.3bn PSV, including R$2.8bn attributable share; targeted gross margin is 46%–50%.

• Planned PSV/attributable share: 2024 R$1.7bn/R$0.9bn; 2025 R$1.5bn/R$0.8bn; 2026 R$2.1bn/R$1.1bn.

• Three Jardim das Perdizes buildings were under construction, with two more planned to start and five projects targeted underway by year-end.

• Management expected sales velocity to recover in Q4 after Flamboyant’s late-September launch and expected Jardim das Perdizes launches to support backlog-margin growth.

• 2025–2027 delivery PSV attributable to the stake was R$789m, R$592m and R$540m, respectively.