Rumo (RAIL3) Q3 2024 earnings summary

Executive summary

• Transported volume reached 21.7 billion RTK in 3Q24, up 2% year-over-year, led by the North Operation, while the South Operation was impacted by the suspension of the Tronco Sul railway stretch due to extreme weather events.

• Achieved record quarterly results with adjusted EBITDA of R$2,214 million (up 22%) and adjusted net income of R$794 million, driven by higher transported volumes, improved yields, and market share gains in key states and ports.

• Completed major infrastructure projects, including the viaduct over BR-163, and advanced the Mato Grosso Greenfield Railway to peak mobilization.

• Market share in grain exports through the Port of Santos rose to 61%, up 8 p.p., and in Mato Grosso to 43%, up 5 p.p.; South Operation's share at Paranaguá and São Francisco do Sul ports increased to 26%.

• Net revenue grew 18% year-over-year to R$3,752 million in 3Q24, with the highest quarterly net income in company history.

Financial highlights

• Adjusted EBITDA reached R$2,214 million in 3Q24 (59% margin, up 22% YoY); adjusted net income was R$794 million, an all-time high.

• Net revenue: R$3,752 million in 3Q24 (+18% YoY); 9M24 net revenue R$10,473 million (+26% YoY).

• Financial leverage improved to 1.4x net debt/Adjusted EBITDA, with net debt stable at R$10.2 billion.

• Capex totaled R$1,468 million in 3Q24 (+64% YoY), driven by expansion projects, especially in Mato Grosso.

• Recurring CAPEX increased 31.5% to R$455 million; expansion CAPEX rose 84.2% to R$529 million.

Outlook and guidance

• Soybean production for 24/25 is projected to increase 9% YoY to 171 million tons, with exports up 4% to 103 million tons; corn production expected to rise 6% to 130 million tons, with exports up 20% to 46 million tons.

• Mato Grosso's soybean production forecasted to grow 12% YoY, supporting continued volume growth.

• Management is optimistic about 2025, expecting a strong crop season and robust operational execution.

• Ongoing investments in infrastructure and rolling stock to support capacity expansion and operational efficiency.

• Soybean and corn market outlooks indicate stable or growing production and exports for Brazil and Mato Grosso, supporting continued demand for rail logistics.