Grupo Traxión (TRAXIONA) Q3 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenues of Ps. 7,530 million, up 17.9% year-over-year, and adjusted EBITDA of Ps. 1,394 million, up 18.7%, with an 18.5% margin, the highest in company history.

• Announced binding agreement to acquire Solistica for Ps. 4,060 million, expected to make the logistics and technology division over 50% of 2025 revenues and expand presence in northern Mexico.

• Focused on asset-light strategy, efficiency programs, and expanding presence in key regions, including a new 3PL cross-dock facility in San Diego.

• Operating cash flow rose to Ps. 1,474 million, supported by improved working capital management.

Financial highlights

• Consolidated revenue grew 17.9% year-over-year to Ps. 7,530 million; adjusted EBITDA increased 18.7% to Ps. 1,394 million, with an 18.5% margin.

• Operating cash flow increased significantly, reaching nearly Ps. 1,474 million for the quarter.

• Ended Q3 with a cash position above Ps. 1,362 million and invested roughly Ps. 1,021 million in organic growth.

• Leverage ratio remains stable compared to Q2, with net debt/EBITDA at 2.15x and a stronger cash position.

• Non-recurring expenses for the quarter were around Ps. 200 million, mainly from reorganization and efficiency programs, impacting net income.

Outlook and guidance

• Solistica acquisition expected to close in 1Q25, funded by internal cash flow and debt, with leverage remaining below 2.5x net debt/EBITDA.

• Strong demand trends for 2025, with many contracts already closed for next year.

• CapEx to be more conservative in 2025, focusing on asset-light growth and efficiency.

• Margins expected to remain stable or improve in Q4 and into next year, especially as mobility division costs normalize.

• Efficiency program anticipated to yield significant results in 4Q24 and throughout 2025.