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.

• 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 expansion in used vehicle sales, including the launch of Sempre Novo and record used asset sales of R$705 million, up 34% year-over-year.

• Adjusted net income grew 57% to R$780 million in 2024, with adjusted EBITDA up 32% to R$3.4 billion, reflecting strong business model and operational performance.

• Confident in future opportunities with a leaner structure, focus on contract renewals, Sempre Novo assets, and operational efficiency.

Financial highlights

• Consolidated net revenue reached R$4.7 billion in 2024, up 32.4% year-over-year, with leasing segment revenue up 35%, asset sales up 34%, and industrial segment up 13%.

• EBIT increased 30% year-over-year to R$2,645.3 million, and EBITDA reached R$3.4 billion, up 32%.

• 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, and cash/short-term investments of R$2.8 billion.

• 4Q24 net revenue was R$1,229.2 million, up 40.3% vs. 4Q23.

Outlook and guidance

• Projecting R$1 billion in new leasing contracts for Sempre Novo in 2025, using existing fleet assets.

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

• Net CAPEX guidance for 2025 is R$2.1 billion, the lowest in recent years, with a focus on operational efficiency, inventory reduction, and increasing fleet occupancy above 90%.

• Expecting used asset sales of at least R$1.2 billion in 2025 and sustainable growth with deleveraging.

• Focus on contract extensions and price adjustments to maintain ROIC and IRR targets, aiming for IRR around 20-22%.