Tegma Gestão Logística (TGMA3) Q3 2024 earnings summary

Executive summary

• Net revenue in Q3 2024 reached R$604 million, up 41% year-over-year, driven by strong growth in automotive logistics and higher average transport distances.

• Net income for Q3 2024 was R$84.4 million, a 50% increase year-over-year, with net margin rising to 14% due to operational improvements and equity pickup.

• Dividend and interest on equity payout of R$51 million (R$0.77/share) approved, representing 60% of net income for Q3 2024, with a 10.7%–10.8% dividend yield over the last 12 months.

• Successful deployment of Oracle ERP system for administrative and financial processes in November 2024, advancing digital transformation and operational efficiency.

• Investor Day event in October 2024 highlighted strategic direction, growth goals, and operational achievements to over 70 participants.

Financial highlights

• Consolidated net revenue for Q3 2024 was R$603.8–604 million, up 41% year-over-year, mainly from automotive logistics.

• EBITDA for Q3 2024 was R$125.6 million (margin 20.8%), up 58% year-over-year, reflecting productivity gains and cost control.

• Net income for Q3 2024 was R$84.4 million, with net margin up 0.8 percentage points year-over-year.

• Free cash flow in Q3 2024 was R$53.6–54 million, driven by positive operating results and a reduced cash-to-cash cycle.

• CAPEX in Q3 2024 totaled R$12.6–13 million, focused on ERP deployment and yard expansion.

Outlook and guidance

• OEMs and authorities expect 2025 vehicle production and results to be stable or slightly improved compared to 2024.

• Fastline subsidiary is on track for record vehicle handling in 2024, with a positive growth outlook.

• No formal revenue or EBITDA guidance provided for 2025; investors are directed to volume-margin correlations on the IR website.

• Management highlights ongoing digital transformation and new business model development following ERP rollout.

• Dividend distribution remains above the minimum policy, with payout and yield expected to stay strong.