Tegma Gestão Logística (TGMA3) Q4 2024 earnings summary

Executive summary

• Net revenue reached BRL 2,090.1 million in 2024, up 32% year-over-year, driven by strong automotive logistics performance and GDL joint venture contributions.

• Net income rose 70% year-over-year to BRL 270.6 million, with margin expansion and operational improvements.

• Proposed BRL 170.1 million in dividends and interest on equity for 2024, representing a 66% payout and a 9.7% dividend yield.

• Recognized as a finalist in the 26th Abrasca Award for Best Annual/Integrated Report, reflecting sustainability and reporting progress.

• Appointed Paulo Franceschini as Director of Integrated Logistics Division, focusing on contract continuity and productivity.

Financial highlights

• Q4 2024 net revenue was BRL 624 million, up 38% year-on-year; full-year net revenue reached BRL 2,090.1 million, up 32%.

• Q4 EBITDA margin expanded by 3.9 p.p. to 20.2%, reflecting operational efficiency and cost control.

• Q4 net income reached BRL 85 million, up 67% year-on-year; full-year net income was BRL 270.6 million, up 49%.

• GDL joint venture net revenue grew 37% year-on-year to BRL 65 million in Q4; full-year revenue was BRL 262 million, with net income up 39%.

• Free cash flow in Q4 was BRL 28 million; full-year free cash flow totaled BRL 170 million.

Outlook and guidance

• Management expects continued growth in both divisions in 2025, supported by investments in fleet renewal, technology, and operational efficiency.

• Dividend payout for 2025 expected to remain around 66%, balancing higher CapEx and financial flexibility.

• 2025 started with 8% growth in auto sales in the first two months, supporting a positive outlook.

• New rules for extrajudicial enforcement of financed vehicles may stimulate credit; company is investing in yard expansion and fleet renewal.

• No material impacts are expected from new accounting standards effective in 2025.