Tegma Gestão Logística (TGMA3) Q4 2024 earnings summary

Executive summary

• Net revenue grew 32% year-over-year in 2024, reaching BRL 2,090 million, driven by strong automotive logistics and GDL joint venture performance.

• Net income rose 49% year-over-year to BRL 271 million, supported by operational improvements and GDL contributions.

• Proposed BRL 39 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 2024 Abrasca Award for Best Integrated/Annual Report, reflecting sustainability and reporting progress.

• Expanded operations through the acquisition of the remaining 17% of Fastline and the merger of Catlog, streamlining the corporate structure.

Financial highlights

• Q4 2024 net revenue was BRL 624 million, up 38% year-over-year; full-year net revenue reached BRL 2,090 million, up 32%.

• Q4 net income reached BRL 85 million, up 67% year-over-year; full-year net income was BRL 271 million, up 49%.

• EBITDA in 2024 was BRL 395 million (18.9% margin), up 49% year-over-year; Q4 EBITDA margin expanded by 3.9 p.p.

• GDL joint venture net revenue grew 37% year-over-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 automotive and integrated logistics, supported by ongoing investments and operational improvements.

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

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

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

• No material impact anticipated from upcoming changes in accounting standards.