Consorcio Ara SAB de CV (ARA) Q4 2024 earnings summary

Executive summary

• Total revenue in 4Q24 reached $1,783.4 million, up 18.1% year-over-year, with housing revenue up 20.5% and 1,416 units sold, a 13.5% increase.

• Operating income for 4Q24 was $187.9 million (+30.1%), net income $189.1 million (+36.9%), and EBITDA $244.2 million (+20.0%).

• Full-year 2024 revenue was $7,118.5 million (+5.5%), with 5,749 units sold and net income of $692.8 million (+4.4%).

• Free cash flow for 4Q24 was $40.6 million; for the year, $279.5 million, supporting a proposed dividend of $200 million.

• Leadership changes include a new Director General for the Housing Division and a new CFO.

Financial highlights

• Gross margin for 4Q24 was 25.9% (down 90bp), operating margin 10.5% (up 90bp), and net margin 10.6% (up 140bp).

• Average selling price per unit in 4Q24 was $1,197.6 thousand pesos (+6.2% YoY).

• Cash and equivalents at year-end were $2,337.0 million (+1.7% YoY).

• Net debt to EBITDA was 0.32x; total debt to equity was 0.17x.

• Dividend yield proposed at 5.1% based on year-end share price.

Outlook and guidance

• Management expects to maintain positive momentum and similar growth in 2025, contingent on favorable sector conditions.

• The housing sector in Mexico remains attractive due to demographic trends and mortgage availability.