Even Construtora e Incorporadora (EVEN3) Q3 2024 earnings summary

Executive summary

• Completed divestment of Melnick, focusing exclusively on São Paulo operations with a robust pipeline in mid to high-end segments and greater shareholder flexibility.

• Net revenue for 9M24 reached R$1.7 billion, up 38% year-over-year; gross profit was R$459 million, with adjusted gross margin improving to 30.7%.

• Net income for 9M24 was R$164 million, a 21% increase year-over-year; annualized ROE reached 12.1%.

• Three projects delivered in 3Q24 in São Paulo, totaling 480 units and R$260 million in PSV.

• Strong sales volumes in finished and near-delivery inventory, reflecting high product acceptance and quality.

Financial highlights

• Net sales for 9M24 totaled R$1.017 billion, up 47% year-over-year; inventory sales grew to R$841 million.

• Adjusted gross margin for the period was 30.7%, up 5.4 percentage points, driven by higher sales margins and successful launches.

• Consolidated net loss in 3Q24 was R$110 million, impacted by Melnick divestment and minority interest reclassification.

• Accumulated cash generation was R$212 million in 9M24; R$230 million in dividends paid in 2024.

• ROE LTM at 12.1%; cash at R$823 million; net debt/equity ratio at 22.5%.

Outlook and guidance

• Future results will be exclusively from São Paulo operations, leveraging a strong land bank and robust launch pipeline in upscale neighborhoods.

• Launch pipeline for 2025 and 2026 is robust, with R$2 billion in PSV for 2025, mostly approved or in final approval stages.

• Expectation of around R$200 million in cash generation and recurring dividends at about 50% of net income for next year, subject to market conditions.

• Next 12 months expected to deliver approximately 2,500 units.