Marcopolo (POMO4) Q3 2024 earnings summary

Executive summary

• Net revenue grew 43.3% year-over-year in Q3 2024 to R$2,314.8 million, driven by strong domestic and international demand and higher production volumes.

• EBITDA more than doubled to R$466 million, with margin rising to 20.1% from 12.9% in Q3 2023, supported by operational leverage and non-recurring gains.

• Net income more than doubled to R$335.7 million, with a margin of 14.5%, reflecting improved international performance and non-recurring items.

• Total production reached 4,133 units, up 37.8% from Q3 2023, with market share in Brazilian bus body production stable at 47.6%.

• ROIC reached 25.2% and net debt/EBITDA remained low at 0.1x.

Financial highlights

• Gross profit increased 55.3% to R$576.8 million, with gross margin improving to 24.9%.

• Domestic revenue grew 49.1% year-over-year; exports from Brazil up 42.4%; international operations revenue rose 31.3%.

• EBITDA margin expanded by 7.2 p.p. to 20.1%; net margin improved by 4.5 p.p. to 14.5%.

• Earnings per share for Q3 2024 reached R$0.297, up 72.6% from Q3 2023.

• Operating cash flow reached R$499.2 million, supporting a cash balance of R$1,770.7 million at quarter-end.

Outlook and guidance

• Healthy order book and positive seasonality expected to support strong start to 2025, with Caminho da Escola program deliveries continuing into 2025.

• Exports and international operations expected to maintain positive momentum, especially in Mexico, Australia, and South Africa.

• Ongoing investments in innovation, decarbonization, and new product launches to support expansion.

• PAC program could accelerate sales of Euro 6 and electric models in 2025.

• Retail demand remains positive, especially for the Volare model.