Grupo Vamos (VAMO3) Q3 2024 earnings summary

Executive summary

• Consolidated revenue rose 33.3% year-over-year in Q3 2024 to nearly R$2 billion, with rental segment revenue up 35% and record used asset sales up 46%.

• Net income increased 51.2% year-over-year in Q3 2024, driven by strong operational performance in the rental segment.

• EBITDA grew 27.6% to R$871.1 million in Q3 2024, with the rental segment accounting for 97% of total EBITDA.

• The rental business remains the main profit driver, with rapid adoption and expansion of the Sempre Novo/Seminovos product.

• Deleveraging trajectory has begun, with a focus on optimizing capital employed and improving profitability for 2025.

Financial highlights

• Net revenue reached R$1.98 billion in Q3 2024, up 33.3% year-over-year; rental net revenue rose 35% to R$1.13 billion.

• EBITDA increased 27.6% to R$871.1 million; EBIT advanced 23.7% to R$660.3 million.

• Net income for Q3 2024 was R$175.1 million, up 51.2% year-over-year.

• Asset sales net revenue hit a record R$207.5 million, up 46% year-over-year, with gross margin of 18.1%.

• Leverage stood at 3.21x Net Debt/EBITDA, with net debt at R$10.7 billion and average debt maturity of 4.8 years.

Outlook and guidance

• 2025 CAPEX deployment projected at R$5 billion, with R$700 million for contract renewals, R$1 billion for Seminovos/Sempre Novo redeployment, and R$3.3 billion for new assets.

• Net CAPEX for 2025 estimated at R$2.1 billion after R$1.2 billion in used asset sales.

• Focus for 2025: increase occupancy rates, expand Seminovos/Sempre Novo, reduce leverage, and improve profitability.

• Leverage expected to fall below 3x by end of 2025, supporting continued growth.

• Strategic reorganization to be completed in 2024, creating the largest and most diversified dealership group in Brazil.