Trisul (TRIS3) Q2 2024 earnings summary

Executive summary

• Net revenue reached R$318.5 million in 2Q24, up 19.3% year-over-year and 5.2% sequentially, with 1H24 revenue at R$621.3 million, a 21.7% increase year-over-year.

• Gross profit for 2Q24 was R$79.4 million, up 24.5% year-over-year, with a gross margin of 24.9%.

• Net profit for 2Q24 was R$31.0 million, a 5.3% increase year-over-year, with a net margin of 9.7%.

• Four projects were delivered in 2Q24, totaling R$745.6 million in PSV, including both mid-income and high-income segments.

• Landbank expanded to R$5.6 billion in PSV as of 2Q24, with a strategic increase in off-balance assets to support future launches.

Financial highlights

• Adjusted EBITDA for 2Q24 was R$61.4 million, up 11.8% year-over-year, with an adjusted EBITDA margin of 19.3%.

• Net debt stood at R$678.6 million, with a net debt/equity ratio of 47.4% at the end of 2Q24.

• Cash and cash equivalents were R$269.6 million, down 13.4% sequentially.

• Total indebtedness at 2Q24 was R$948.2 million, down 4% from March 2024.

• Operating cash flow was negative R$24.7 million in 1H24, an improvement from negative R$68.9 million in 1H23.

Outlook and guidance

• Guidance for gross sales and launches remains between R$1.8 billion and R$2.2 billion for the 18 months starting July 2023.

• Management expects continued revenue growth supported by a robust backlog of unrecognized revenue (R$586.9 million) and a gross margin to be appropriated of 37.6%.

• Important launches are planned for the second half of 2024, with confidence in meeting targets.

• Strategic land acquisitions position the company for launches starting in 2026.

• Net debt to equity ratio is expected to fall significantly by year-end due to project deliveries and receivables.