Wilson Sons (PORT3) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue increased 24% year-over-year to BRL 767 million, with record consolidated results driven by strong terminal and towage performance and a one-off gain from the sale of an older shipyard.

• EBITDA rose 47% to BRL 399 million in Q3 2024, and 9M24 EBITDA reached BRL 962 million, up 24.4% year-over-year, reflecting robust operational results and a significant one-time gain.

• Net profit surged 129% to BRL 217 million in Q3 2024, and 9M24 net profit was BRL 367 million, up 25.9% year-over-year.

• Workplace safety outperformed benchmarks, with a lost-time injury frequency rate of 0.39 incidents per million hours and 0.20 in Sep-24.

• Controlling shareholder signed an agreement to sell its entire interest in October 2024.

Financial highlights

• 9M24 net revenues reached BRL 2,102.2 million, up 17.9% year-over-year; Q3 2024 revenues were BRL 767.4 million, up 24.1%.

• 9M24 EBITDA was BRL 962 million (+24.4% y/y); Q3 2024 EBITDA was BRL 398.6 million (+47.3% y/y).

• 9M24 net profit was BRL 367 million (+25.9% y/y); Q3 2024 net profit was BRL 216.9 million (+128.7% y/y).

• Operating cash flow in Q3 was BRL 309 million; investments totaled BRL 95 million, mainly for tugboat construction and terminal maintenance.

• Three interim dividends totaling BRL 335.5 million were distributed in 2024.

Outlook and guidance

• Core terminal and towage segments exceeded expectations for the first 10 months of 2024, with aggregate terminal volumes up 27%.

• New services at Salvador and Rio Grande terminals position for continued volume growth in gateway and transshipment flows.

• Priority financing approved for Salvador terminal expansion and BNDES financing for new tugboats.

• Commitment to operational excellence, safety, and stakeholder value remains unchanged following shareholder sale agreement.