Tegma Gestão Logística (TGMA3) Q3 2024 earnings summary

Executive summary

• Net revenue in Q3 2024 reached BRL 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 BRL 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 BRL 51 million (BRL 0.77/share) approved, representing 60% of net income for Q3 2024, with a 10.7% dividend yield over the last 12 months.

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

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

Financial highlights

• Q3 2024 net revenue: BRL 604 million (+41% YoY); 9M24: BRL 1,466 million (+29.8% YoY).

• Q3 2024 EBITDA: BRL 125.6 million (+58% YoY), margin 20.8% (+2.2 p.p. YoY); 9M24: BRL 269.1 million (+40.9% YoY).

• Q3 2024 net income: BRL 84.4 million (+50% YoY), net margin 14% (+0.8 p.p. YoY); 9M24: BRL 185.5 million (+41.7% YoY).

• Free cash flow in Q3 2024 was BRL 54 million, driven by positive operating results and reduced cash-to-cash cycle.

• CapEx in Q3 2024 totaled BRL 13 million, mainly for ERP deployment and yard expansion.

Outlook and guidance

• Management expects continued growth in automotive logistics, supported by strong domestic vehicle sales and stable market share.

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

• Ongoing focus on operational efficiency, digital transformation, and expansion of integrated logistics contracts.

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