In This Article:
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Marcopolo SA (BSP:POMO3) reported strong growth in revenues and results for the fourth quarter of 2024, with EBITDA reaching 461 million and net income at 318 million.
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The Brazilian bus production grew by 22.7% in 2024 compared to 2023, surpassing pre-pandemic levels.
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Consolidated net revenues increased by 30% in the fourth quarter, reflecting a better market scenario and expansion in both domestic and international operations.
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International operations were a highlight in 2024, contributing significantly to results, with strong performance expected in 2025, particularly in Mexico and Argentina.
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The company has a strong order book for 2025, projecting a consistent pace of production similar to the end of 2024, which should align production and deliveries efficiently.
Negative Points
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Production for exports from Brazil decreased by 8.7% in the fourth quarter of 2024.
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EBITDA was negatively impacted by a non-recurring provision related to employee compensation and adverse results from the Canadian subsidiary, New Flyer.
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The company faced a negative impact of almost 50 million due to exchange rate variations caused by the devaluation of the Brazilian real.
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There was a slight contraction in EBITDA margin compared to the previous quarter, attributed to a mix of portfolio composition and external market dynamics.
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The competitive environment remains challenging, with no significant increase in capacity from competitors, requiring Marcopolo SA to focus on efficiency and gradual growth.
Q & A Highlights
Q: Have higher interest rates impacted your order book, and can you comment on the size of your order book for domestic exports and external units? Also, what are the demands in different export markets for Marcopolo? A: (CEO) We have a strong order portfolio, especially for road buses. We are making our production more flexible to meet the needs of these orders. In urban buses, we see opportunities for electric and articulated buses. The interest rate is a concern, but road travel is showing positive trends. Export markets like Argentina and Mexico are showing growth, and we have closed important orders for 2025.
Q: Can you explain the dynamics of profitability and the impact of raw materials on margins? Also, what are your plans for cash generation given the low leverage levels? A: (CFO) The profitability mix is due to the composition of our portfolio. We haven't identified significant inflationary impacts on costs, and commodity prices are stable. Regarding cash generation, we continue with a payout policy of 40-50% of results and have internal projects to enhance competitiveness and sustainability.