Marcopolo (POMO4) Q4 2024 earnings summary

Executive summary

• Net revenue in 4Q24 reached R$2,666.3 million, up 30.1% year-over-year, driven by higher volumes in Brazil and international markets, with international operations up 31.7%.

• EBITDA reached R$461.4 million (margin 17.3%), a 60.5% increase year-over-year, with net income of R$318.8 million (margin 12.0%), up 17% from 4Q23.

• Return on invested capital stood at 28.1% for the period.

• Market share in Brazilian bus body production was 47.8% in 4Q24, maintaining leadership in road and micro segments.

• International operations, especially in Mexico, South Africa, Argentina, and Australia, contributed significantly to results.

Financial highlights

• Gross profit in 4Q24 was R$659.3 million (margin 24.7%), up from R$500.0 million (margin 24.4%) in 4Q23.

• EBITDA margin was 17.3%, negatively impacted by non-recurring R$16.8 million provision for variable compensation and R$7.3 million from New Flyer subsidiary; adjusted EBITDA margin would be 18.2%.

• Net financial result was negative R$28.3 million, impacted by R$49.8 million in exchange rate losses due to real depreciation.

• Total revenue for 2024 was R$8,593.8 million, up 28.6% from 2023.

• Earnings per share for 4Q24 was R$0.325, compared to R$0.289 in 4Q23.

Outlook and guidance

• 2025 expected to see continued volume growth in Brazil, with a strong backlog and healthy demand in road and micro segments; urban segment anticipated to recover, with increased deliveries of electric and higher-value vehicles.

• International operations, especially in Mexico, Argentina, South Africa, and Australia, projected to maintain or improve performance; export growth expected, especially to Latin America and Africa.

• Caminho da Escola program volumes expected to remain constant in 2025, with more even distribution across quarters and deliveries scheduled for early 2026.

• EV segment expected to grow, with maturing products and increasing orders from cities.

• Risks include competitive pressures, inflation, and high interest rates in Brazil.