Grupo Vamos (VAMO3) Q4 2024 earnings summary

Executive summary

• Completed the spin-off of the dealership business, now fully focused on leasing trucks, machinery, and equipment, with over 95% of EBITDA from this segment and a leaner, more agile structure.

• Achieved national leadership in heavy vehicles and forklifts leasing, with a diversified customer base and over 54,000 assets in the fleet.

• 2024 marked by strong operational performance, sector diversification, and record used vehicle sales of R$705 million, up 34% year-over-year.

• Distributed R$980 million in in-kind dividends and recognized a capital reduction of R$1.13 billion due to the spin-off.

• Net profit from continuing operations was R$724.9 million, while discontinued operations posted a loss of R$344 million.

Financial highlights

• Consolidated net revenue reached R$4.7 billion in 2024, up 32% year-over-year, with leasing revenue up 35%, asset sales up 34%, and industrial segment up 13%.

• Adjusted net income reached R$780 million in 2024, up 57% year-over-year; adjusted EBITDA totaled R$3.4 billion, a 32% increase.

• Gross margin from used vehicle sales was 20.7% for the year, reflecting strong asset value retention.

• Net debt at year-end was R$11.6 billion, with leverage at 3.3x Net Debt/EBITDA and cash/short-term investments of R$2.8 billion.

• Net finance result was negative R$1.48 billion, reflecting high interest and debt service costs.

Outlook and guidance

• Projecting R$5 billion in CAPEX for new contracts in 2025, with R$1 billion in Sempre Novo assets and R$700 million in contract extensions; net CAPEX forecast at R$2.1 billion, the lowest in recent years.

• At least 34% of 2025 growth (R$1.7 billion) to come from previously acquired assets, reducing new capex needs.

• Focus on operational efficiency, inventory reduction, and increasing fleet occupancy above 90%.

• Commitment to deleveraging and profitable, sustainable growth in 2025.

• Ongoing investments in fleet renewal and expansion, with R$4.13 billion in new vehicles, machinery, and equipment acquired in 2024.