Gafisa (GFSA3) Q4 2024 earnings summary

Executive summary

• Achieved a 90% increase in gross sales and a 63% reduction in contract cancellations compared to 4T23, with gross sales in 4Q24 reaching R$281 million and sales velocity at 14%, 5 p.p. higher than 4Q23.

• Delivered R$1.2 billion in project completions, the highest in five years, with six developments completed in São Paulo and Rio de Janeiro.

• Portfolio shifted to 80% high-end units, reflecting a successful luxury market strategy.

• Achieved 100% of ESG goals, including Great Place to Work, green building certifications, 76% recycled steel usage, and triple ISO certifications.

Financial highlights

• Net revenue grew 43% year-over-year in 4T24, reaching R$259 million, with net operating revenue up 40% year-over-year and 17% sequentially.

• Adjusted net income surged 343% versus 3T24, totaling R$58 million, and rose 141% for the full year.

• Adjusted gross profit for 2024 increased 22% year-over-year to R$214 million.

• EBITDA for 2024 grew 47% year-over-year to R$53 million.

• Cash and equivalents rose 42% year-over-year to R$416 million.

Outlook and guidance

• Plans to launch two iconic projects in Rio de Janeiro and invest in landbank in São Paulo and Rio de Janeiro in 2025.

• Focus on sustainability, energy efficiency, renewable energy, and waste management to advance toward a low-carbon economy.

• Management notes that forward-looking statements are subject to risks and uncertainties, and actual results may differ from projections.