JSL (JSLG3) Q3 2024 earnings summary

Executive summary

• Achieved 18% organic growth year-over-year in Q3 2024, with net profit up 25% to BRL 73 million and gross revenue rising 17.7% to BRL 2.8 billion, maintaining sector leadership and expanding through cross-selling and new customers.

• Secured BRL 2.2 billion in new contracts in Q3, totaling BRL 4.5 billion for the year, and added 27 new customers, with high cross-selling rates and sector diversification.

• Awarded "Best Company of the Year" in the logistics sector by Exame.

• Maintained sector leadership with a diversified portfolio and strong cross-selling capabilities.

• ROIC running rate held at 15.4%, consolidating a new profitability level.

Financial highlights

• Adjusted EBITDA reached BRL 466 million (+18.7% YoY), with a margin of 20.4%, and adjusted net income was BRL 73 million (+25% YoY).

• Free cash flow after growth was BRL 395 million, the highest since IPO.

• Net debt reduced to BRL 5.3 billion, with a net debt/EBITDA ratio of 2.9x.

• Asset-light operations represented 53% of revenues, growing 16% year-over-year; asset-heavy operations accounted for 47%, growing 19%.

• EBITDA margin improved by 1.2 percentage points sequentially from Q2 2024.

Outlook and guidance

• Optimistic outlook for Q4 2024 and 2025, expecting continued strong performance and contract backlog to drive growth.

• CapEx for 2025 expected to remain close to 2024 levels, with no major changes anticipated.

• Focus on continuous deleveraging and maintaining healthy return on invested capital.

• Contracted growth ensures revenue visibility through 2024, with continued focus on organic expansion and cross-selling.

• Management expects continued improvement in results and profitability as major projects mature and new contracts ramp up.