Tegma Gestão Logística (TGMA3) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial performance, driven by growth in automotive logistics and efficiency gains.

• Dividend and interest on equity payout of R$51 million (R$0.77/share), representing 60% of net income and a 10.8% LTM dividend yield.

• Oracle ERP system was successfully implemented in November 2024, advancing digital transformation and process efficiency.

• Investor Day event in October 2024 engaged over 70 analysts and investors, highlighting strategy, results, and future vision.

• 202 thousand vehicles transported in Q3 2024, up 19% year-over-year, with market share increasing to 25.8%.

Financial highlights

• Net revenue in Q3 2024 reached R$1,466 million, up 41% year-over-year, mainly from automotive logistics.

• EBITDA for Q3 2024 was R$269 million (margin 18.6%), up 58% year-over-year, reflecting productivity gains and cost control.

• Net income for Q3 2024 was R$126 million, a 50% increase year-over-year, with net margin at 8.6%.

• Free cash flow in Q3 2024 was R$54 million, supported by improved cash-to-cash cycle and tax credits.

• CAPEX in Q3 2024 totaled R$13 million, focused on ERP deployment, land improvements, and yard expansion.

Outlook and guidance

• Dividend distribution remains above the minimum policy, with payout and yield expected to stay strong.

• Management highlights ongoing digital transformation and new business model development following ERP rollout.

• OEMs and authorities expect 2025 to be stable or slightly improved compared to 2024.

• No formal revenue or EBITDA guidance provided, but volume and margin correlations are available on the investor relations website.

• ROIC, ROE, and EVA improved in Q3 2024, reflecting ongoing operational strength.