Tegma Gestão Logística (TGMA3) Q4 2024 earnings summary

Executive summary

• Net revenue grew 32% year-over-year in 2024 to R$2,090 million, driven by strong automotive logistics performance.

• Net income rose 70% year-over-year to R$265 million, supported by operational improvements and GDL joint venture contributions.

• Proposed R$39 million in dividends and interest on equity for 2024, representing a 66% payout and 9.7% yield.

• Tegma was a finalist in the 26th Abrasca Award for Best Annual Report of 2023.

• Appointed Paulo Franceschini as Director of Integrated Logistics Division, focusing on contract continuity and productivity.

Financial highlights

• Q4 2024 net revenue rose 38% year-on-year to R$624 million, with full-year 2024 net revenue at R$2,090 million, up 32%.

• Q4 net income reached R$85 million, up 67% year-on-year; 2024 net income was R$271 million, up 49%.

• Q4 EBITDA was R$126 million (20.2% margin), up 70% year-on-year; 2024 EBITDA was R$395 million (18.9% margin), up 49%.

• Free cash flow in Q4 was R$28 million; 2024 free cash flow totaled R$170 million.

• CapEx in Q4 totaled R$17 million, with 2024 CapEx at R$57.6 million, focused on storage, logistics equipment, and fleet renewal.

Outlook and guidance

• 2025 CapEx budgeted to increase from R$57 million to nearly R$90 million.

• Dividend payout expected to remain around 66%, balancing financial flexibility and investment needs.

• Management expects continued benefits from efficiency gains and market growth, especially in automotive logistics.

• Automotive market outlook for 2025 improved, with 8% sales growth in the first two months and positive industry sentiment.

• New rules for extrajudicial enforcement of financed vehicles may stimulate credit; company investing in yard expansion and fleet renewal.