EARNINGS RELEASE 4Q24
Curitiba, February 20th, 2025 - RUMO S.A. (B3: RAIL3) ("Rumo") announces its results for the fourth quarter of 2024 (4Q24). The results are presented on a consolidated basis, in accordance with Brazilian and international accounting standards (IFRS). Comparisons in this report refer to 4Q24 and 4Q23, unless stated otherwise.
4Q24 and 2024 Highlights
- Transported volume reached 19.9 billion RTK in 4Q24 and 79.8 billion RTK for the year, up 2% and 3%, respectively.
- Market share in Mato Grosso increased by 14 p.p. in 4Q24 and 5 p.p. for the year.
- Tariff growth of 25% in the quarter and 24% for the year, driving 2024 margin expansion.
- Adjusted EBITDA reached R$ 1,667 million in 4Q24 and R$ 7,713 million in 2024, increasing 38% and 37%, respectively.
- Adjusted net income totaled R$ 206 million in 4Q24 and R$ 2,089 million in 2024, more than doubling year- over-year.
- Total Capex amounted to R$ 1,912 million in the quarter and R$ 5,523 million in 2024.
- Financial leverage stood at 1.4x net comprehensive debt/Adjusted EBITDA.
4Q24 | 4Q23 | Chg. % | Summary of financial information | 12M24 | 12M23 | Chg. % |
(Amounts in BRL mln) | ||||||
19,899 | 19,585 | 1,6% | Total transported volume (millions RTK) | 79,847 | 77,258 | 3.2% |
1,201 | 1,195 | 0,5% | Logistics solution volume | 4,814 | 4,857 | -0.9% |
3,463 | 2,616 | 32,4% | Net revenue | 13,936 | 10,938 | 27.4% |
(2,014) | (1,806) | 11,5% | Cost of goods sold | (7,534) | (6,839) | 10.2% |
1,450 | 810 | 79,0% | Gross profit | 6,403 | 4,099 | 56.2% |
41.9% | 31.0% | 11 p.p. | Gross margin (%) | 45.9% | 37.5% | 8 p.p. |
(234) | (188) | 24,5% | Sales, general and administrative expenses | (711) | (601) | 18.3% |
(95) | (9) | >100% | Other op. revenues (expenses) | (147) | (101) | 45.5% |
(465) | - | - | Impairment Rumo Malha Sul | (3,149) | - | - |
(17) | 21 | <100% | Equity pick-up | 33 | 77 | -57.0% |
638 | 634 | 0,6% | Operational profit (loss) | 2,429 | 3,474 | -30.1% |
564 | 573 | -1,6% | Depreciation and amortization | 2,303 | 2,176 | 5.8% |
1,202 | 1,207 | -0,4% | EBITDA | 4,732 | 5,650 | -16.2% |
34.7% | 46.1% | -11 p.p. | EBITDA margin (%) | 34.0% | 51.7% | -18 p.p. |
465 | - | >100% | Non-recurring adjustments¹ | 2,980 | - | >100% |
1,667 | 1.207 | 38,1% | Adjusted EBITDA¹ | 7,713 | 5,650 | 36.5% |
48.1% | 46.1% | 2 p.p. | Adjusted EBITDA margin (%) | 55.0% | 51.7% | 3 p.p. |
(259) | 1 | <100% | Net profit (loss) | (948) | 722 | <100% |
-7.5% | 0.0% | -8 p.p. | Net margin (%) | -6.8% | 6.6% | -13 p.p. |
206 | 1 | >100% | Adjusted net profit (loss)¹ | 2,089 | 722 | >100% |
6.0% | 0.0% | 6 p.p. | Adjusted net margin | 15.0% | 6.6% | 8 p.p. |
1,912 | 1,221 | 56,6% | Capex | 5,523 | 3,737 | 47.8% |
- For better comparability, the results have been adjusted for non-recurring effects, as follows: In 4Q24, EBITDA and Net Income were impacted by a R$ 465 million non-cash impairment provision for Malha Sul. In 3Q24, EBITDA and Net Income were impacted by a R$ 109 million non- cash impairment provision for Malha Sul. In 2Q24, EBITDA was affected by (i) a R$ 2.575 million non-cash impairment provision for Malha Sul and (ii) a R$ 169 million price adjustment from the sale of Rumo's 80% stake in terminals T16 and T19 in Santos, while Net Income was impacted by (i) the R$ 2.575 million impairment provision and (ii) a R$ 112 million price adjustment related to the same transaction | price complement in the sale of Rumo's 80% stake in the T16 and T19 terminals in Santos.
Earnings Conference Call | ||
February 21st, 2025 | Investor Relations | |
Portuguese* - 2PM (Brasília Time) | E-mail: ir@rumolog.com | |
* With simultaneous translation to English | Website: ri.rumolog.com | |
Earnings Release
4Q24
Letter from the CEO
We are pleased with our solid performance in 2024, driven by the successful execution of our strategic plan and the consolidation of key advancements.
We achieved growth in transported volume, reaching 79.8 billion RTK, despite challenges such as the soybean crop failure in Mato Grosso, lower Brazilian corn exports, and the impact of extreme weather events in Rio Grande do Sul on our logistics infrastructure. We delivered a record-high Adjusted EBITDA of R$ 7.7 billion, up 37%, and Adjusted Net Income of R$ 2.1 billion, more than doubling year over year.
Safety remains a non-negotiable priority. However, this year's results underscore the need for continuous improvement. In rail operations, increasing complexity and higher utilization rates led to more severe accidents. On the personal safety front, even though we have recorded zero fatalities and incident severity declined, the frequency has increased. This performance falls short of our expectations, and we remain committed to reinforcing our safety culture.
We invested R$ 5.5 billion, reinforcing our leadership in the development of Brazil's logistics infrastructure. On the Mato Grosso Railway, we accelerated construction across 160 kilometers, mobilizing over 5,000 workers and 1,000 heavy equipment units. In the Malha Paulista, we successfully renegotiated our concession contract obligations and advanced key projects to enhance capacity and safety along this critical logistics corridor. In Santos, we strengthened our strategic positioning by securing agreements with DP World and CHS to develop a new grain and fertilizer terminal - essential infrastructure for Rumo's future growth.
We expanded partnerships through joint investments and portfolio diversification. We launched new rail operations for grain transportation in Tocantins, hardwood pulp in Mato Grosso do Sul, and mining commodities (bauxite) in Goiás. Additionally, we signed co-investment agreements with customers for the acquisition of rolling stock for liquid and dry bulk transportation, enhancing efficiency and optimizing future investments.
We remain committed to maintaining a balanced capital structure and a strong liquidity position. We successfully raised new funding in the Brazilian capital markets, securing a competitive cost of debt with an adequate duration. By year-end, our financial leverage stood at 1.4x, improving from 1.8x in the previous year.
Our sustainability agenda continues to gain market recognition, with Rumo maintaining its position in the Dow Jones Sustainability™ World Index, Dow Jones Sustainability™ Emerging Markets, and the B3 Corporate Sustainability Index. In governance, we joined the UN Global Compact's 100% Transparency Movement and strengthened our ethics and compliance management system. On the social front, we deepened engagement with communities along our railway, collaborating with local authorities and organizations. In climate initiatives, we enhanced rail energy efficiency, reducing specific greenhouse gas emissions and accelerating decarbonization across our value chain.
Our team is well-prepared for future challenges, backed by a strong culture. We restructured our organization to position the company for its next growth cycle, ensuring the strategic alignment and optimal allocation of talent. We also made progress in diversity, achieving 30% representation of women in leadership positions, surpassing our 2030 target.
Looking ahead to 2025, we are set for continued growth. While we are excited about the opportunities the year presents, we remain mindful of the challenging macroeconomic landscape and rising interest rates, which will require heightened discipline in executing our operations and investments.
I extend my gratitude to our investors and partners for their trust, and to our 8,000 railroaders for their dedication. We keep Brazil moving.
Pedro Palma
CEO, Rumo
Earnings Release
4Q24
1. Executive Summary
In 4Q24, Rumo transported 19.9 billion RTK, a 2% increase YoY. For the full year, transported volume reached 79.8 billion RTK, setting a new all-timehigh, up 3% compared to 2023. The quarterly performance was driven by growth in industrial volumes within the North Operation, particularly the ramp-upof new hardwood pulp operations, alongside increased shipments of soybean meal and fertilizers. Over the full year, growth was well-balanced,with volume increases across Rumo's key cargo segments.
Volume - Consolidated and by Operation
+2%
19.6 19.9
(Bln RTK)
+5%
15.5 16.2
-16%
3.1 2.6
+5%
1.0 1.1
Consolidated | North | South | Conteiner |
4Q23 4Q24
Rumo's market share in grain exports through the Port of Santos rose to 77% in the quarter, a 24- percentage-pointincrease. The rail system maintained relatively stable transported volumes, despite lower Brazilian corn export levels in 2024, which contributed to the market share expansion. For the full year, consolidated market share reached 59%, up 8 percentage points from the previous year.
53% | +24.5 p.p. |
14.4
-68%
6.8
-3%
7.6
Grains Exports in Santos - SP
(Mm tons and %)
77% | 51% | +7.8 p.p. |
61.7 | ||
30.2 | -27% |
9.6 | ||
2.2 | -0.3% | |
7.4 | 31.5 | |
59%
53.3
22.0
31.4
4Q23 | 4Q24 | 2023 | 2024 |
Source: Orion and Rumo.
Rumo's market share in Mato Grosso increased by 14 percentage points in the quarter and 5 percentage points in 2024, reaching 58% and 46%, respectively. The strong quarterly performance, reinforcing the railway's position as the state's leading logistics corridor, was driven by early transportation contract agreements and greater rail system reliability.
45%
15.4
+13.7 p.p.
Grains Exports in MT
(Mm tons and %)
58% | 41% |
67.0 |
Earnings Release
4Q24
46%
+4.9 p.p.
58.5
-46% | 11.1 | 39.8 | -20% | 31.9 | ||
8.6 | ||||||
4.6 | ||||||
-2% | ||||||
-6% | 27.2 | 26.6 | ||||
6.9 | 6.5 | |||||
4Q23 | 4Q24 | 2023 | 2024 |
Source: Orion, Comex Stat and Rumo.
Rumo's market share in Goiás reached 31% in the quarter, an 18-percentage-pointincrease. For the full year, market share rose to 25%, up 7 percentage points, underscoring the competitiveness of Malha Central.
Grains Exports in GO
(Mm tons and %)
12% | +18.5 p.p. | 31% |
4.8 |
-55% | ||
2.7 | ||
4.2 | ||
+43% | 1.9 | |
0.6 | 0.8 | |
4Q23 | 4Q24 |
18% | +7.1 p.p. | 25% |
19.9 | ||
16.6 | ||
-24% | ||
16.2 | 12.4 | |
+16% | ||
3.6 | 4.2 | |
2023 | 2024 |
Source: Orion, Comex Stat and Rumo.
Earnings Release
4Q24
In 4Q24, the Southern Operation expanded its grains transportation market share at the ports of Paranaguá (PR) and São Francisco do Sul (SC) by 7 percentage points, reaching 31%. For the full year,
market share stood at 29%, an increase of 4 percentage points compared to the previous year.
Grains Exports in Paranaguá - PR and São Francisco do Sul - SC
(Mm tons and %)
31% | |
24% | +7.5 p.p. |
8.0 |
-43% | ||
5.1 | ||
6.1 | ||
-17% | 3.5 | |
1.9 | 1.6 | |
4Q23 | 4Q24 |
29% | |
25% | +3.9 p.p. |
34.5 | |
29.8 | |
-18% | |
25.9 | 21.1 |
-0.4% | |
8.7 | 8.6 |
20232024
Source: Orion and Rumo.
The Brazilian initial 2024/25 soybean crop estimates have been revised upward, with production now expected to reach 171 million tons and exports projected at 107 million tons, both increasing by 8%. The upward revision is primarily due to higher production in Mato Grosso, which is estimated at 49 million tons and exports at 32 million tons, reflecting increases of 18% and 28%, respectively. This adjustment is driven by an expansion in planted area and favorable weather conditions that have enhanced agricultural productivity in the region.
For the 2024/25 season, initial estimates project Brazilian corn production at 131 million tons and exports at 43 million tons, representing increases of 2% and 7%, respectively. In Mato Grosso, production is expected to reach approximately 50 million tons, with expanded planted area partially offsetting a return to historical productivity levels, while exports are projected to remain stable at around 28 million tons.
Production and Exports in Brazil
(Mm tons and %)
23/24 | 24/25e | Chg. % | |
Soybean | |||
Production | 159 | 171 | +8% |
Exports | 99 | 107 | +8% |
Corn | |||
Production | 128. | 131 | +2% |
Exports | 40 | 43 | +7% |
Source: MI Rumo, AG Rural, Veeries, Orion, Comex Stat. IMEA
Note: (e) - estimates
Production and Exports in MT
(Mm tons and %)
23/24 | 24/25e | Chg. % | |
Soybean | |||
Production | 42 | 49 | +18% |
Exports | 25 | 32 | +28% |
Corn | |||
Production | 53 | 50 | -5% |
Exports | 27 | 28 | +2% |
Earnings Release
4Q24
Sustainability
Reaffirming our commitment to sustainability, we reduced the specific carbon emissions of our trains by 3.33% compared to 2023, avoiding 6.9 million tons of CO₂ emissions-equivalentto the emissions that would have been generated if the entire transported volume had been moved by trucks.
Additionally, for the second consecutive year, Rumo remains the only logistics company in Brazil included in both the World and Emerging Markets portfolios of the Dow Jones Sustainability Index (DJSI), a global benchmark for environmental, social, and governance (ESG) performance.
Financial Highlights
In 4Q24, net revenue reached R$ 3,463 million, a 32% increase compared to 4Q23. For the full year, revenue totaled R$ 13,936 million, growing 27% versus 2023, driven by an additional 2.6 billion RTK in transported volume and an increase of 24% in the average annual tariff.
Variable costs increased 35% in the quarter and 13% for the year, reflecting higher transported volumes and higher unit fuel costs. Additionally, one-off cost variations in the quarter included the booking of R$ 90 million at Rumo SA, offset by revenue at Rumo Malha Paulista, as well as a lower impact from take-or-pay agreements compared to the previous year. Fixed costs and SG&A expenses totaled R$ 741 million in the quarter and R$ 2,784 million for the year, increasing 2% and 12%, respectively. These increases were aligned with the necessary structure to strengthen processes, support expansion strategy, drive efficiency gains, and enhance risk management.
Adjusted EBITDA reached R$ 1,667 million in 4Q24, growing 38% compared to 4Q23, with a margin of 48%. For the full year, EBITDA totaled R$ 7,713 million, an 37% increase, primarily driven by higher margins throughout the year and increased transported volumes.
Adjusted net income was R$ 206 million in the quarter and R$ 2,089 million for the year, more than doubling compared to 2023.
Financial leverage, measured as the net comprehensive debt-to-Adjusted EBITDA ratio, ended the year at 1.4x, remaining stable compared to the previous quarter and below the level recorded at the end of the prior year. This reflects Rumo's deleveraging progress in 2024.
Earnings Release
4Q24
2. Consolidated Operating and Financial Indicators
4Q24 | 4Q23 | Chg. % | Summary of financial information | 12M24 | 12M23 | Chg. % |
(Amounts in BRL mIn) | ||||||
19,899 | 19,585 | 1.6%Total transported volume (millions RTK) | 79,847 | 77,258 | 3.4% | |
15,986 | 16,246 | -1.6% | Agricultural products | 65,778 | 64,365 | 2.2% |
443 | 512 | -13.5% | Soybean | 22,382 | 21,311 | 5.0% |
2,954 | 2,597 | 13.8% | Soybean meal | 11,581 | 10,496 | 10.3% |
9,332 | 10,119 | -7.8% | Corn | 20,541 | 22,202 | -7.5% |
1,391 | 1,391 | 0.0% | Sugar | 5,285 | 4,720 | 12.0% |
1,784 | 1,522 | 17.2% | Fertilizers | 5,729 | 5,282 | 8.5% |
83 | 105 | -21.0% | Other | 260 | 354 | -26.6% |
2,805 | 2,312 | 21.3% | Industrial products | 9,909 | 9,071 | 9.2% |
1,397 | 1,534 | -8.9% | Fuels | 5,839 | 5,866 | -0.5% |
1,408 | 778 | 81.0% | Industrial | 4,070 | 3,205 | 27.0% |
1,108 | 1,027 | 7.9% | Containers | 4,160 | 3,822 | 8.9% |
3,463 | 2,616 | 32.4% | Net revenue | 13,936 | 10,938 | 27.4% |
3,020 | 2,379 | 26.9% | Transportation | 12,459 | 10,040 | 24.1% |
206 | 183 | 12.6% | Logistic solution¹ | 749 | 661 | 13.3% |
237 | 54 | >100% | Other revenues² | 728 | 237 | >100% |
1,202 | 1,207 | -0.4% | EBITDA | 4,732 | 5,650 | -16.2% |
34.7% | 46.1% | -11 p.p. | EBITDA margin (%) | 34.0% | 51.7% | -18 p.p. |
465 | - | >100% | Non-recurring adjustments | 2,980 | - | - |
1,667 | 1,207 | 38.1% | Adjusted EBITDA | 7,713 | 5,650 | 37.0% |
48.1% | 46.1% | 2 p.p. | Adjusted EBITDA margin (%) | 55.0% | 51.7% | 3 p.p. |
- Revenue from sugar transportation using other railways or road transportation.
- It includes revenue from the pass-through fee of other railways, and revenue from volumes contracted and not executed according to commercial agreements (take-or-pay), among others.
4Q24 | 4Q23 | Chg. % | Yield by Operation | 12M24 | 12M23 | Chg. % |
Northern Operation | ||||||
148.5 | 114.6 | 29.6% | Yield (R$/000 RTK) | 158.2 | 124.2 | 27.4% |
81.6% | 79.1% | 2.5 p.p. | % Volume | 79.7% | 78.5% | 1.2 p.p. |
Southern Operation | ||||||
159.5 | 144.4 | 10.5% | Yield (R$/000 RTK) | 174.7 | 153.9 | 13.5% |
12.9% | 15.6% | -2.7 p.p. | % Volume | 15.1% | 16.6% | -1.4 p.p. |
Container Operation | ||||||
182.6 | 156.8 | 16.5% | Yield (R$/000 RTK) | 157.2 | 140.5 | 11.9% |
5.6% | 5.2% | 0.4 p.p. | % Volume | 5.2% | 4.9% | 0.3 p.p. |
Consolidated | ||||||
151.8 | 121.5 | 24.9% | Yield (R$/000 RTK) | 160.6 | 130.0 | 23.6% |
Earnings Release
4Q24
3. Results by Business Unit
Business Units
The business units (reportable segments) are organized as follows:
• | Northern Operation | Malha Norte, Malha Paulista and Malha Central |
• | Southern Operation | Malha Oeste and Malha Sul |
• | Container Operation | Container operations, including Brado Logística |
Results by business unit | Northern | Southern | Container | Consolidated | ||
4Q24 | Operation | Operation | Operation | |||
Transported volume (million RTK) | 16,231 | 2,560 | 1,108 | 19,899 | ||
Net operating revenue | 2,830 | 424 | 209 | 3,463 | ||
Costs of services | (1,483) | (356) | (175) | (2,014) | ||
Gross profit | 1,347 | 68 | 34 | 1,450 | ||
Gross margin (%) | 47.6% | 16.1% | 16.4% | 41.9%. | ||
Sales, general and administrative expenses | (187) | (30) | (17) | (234) | ||
Other operating revenue (expenses) & eq. pick-up | (65) | (51) | 4 | (112) | ||
Impairment Malha Sul | - | (465) | - | (465) | ||
Depreciation and amortization | 438 | 92 | 34 | 564 | ||
EBITDA | 1,533 | (387) | 55 | 1,202 | ||
EBITDA margin (%) | 54.2% | -91.2% | 26.3% | 34.7%. | ||
Non-recurring adjustments | - | 465 | - | 465 | ||
Adjusted EBITDA | 1,533 | 79 | 55 | 1,667 | ||
Adjusted EBITDA margin (%) | 54.2% | 18.6% | 26.3% | 48.1% | ||
Results by business unit | Northern | Southern | Container | Consolidated | ||
12M24 | Operation | Operation | Operation | |||
Transported volume (million RTK) | 63,615 | 12,072 | 4,160 | 79,847 | ||
Net revenue | 11,097 | 2,154 | 685 | 13,936 | ||
Costs of services | (5,336) | (1,595) | (602) | (7,534) | ||
Gross profit | 5,760 | 559 | 83 | 6,403 | ||
Gross margin (%) | 51.9% | 26.0%. | 12.1% | 45.9% | ||
Sales, general and administrative expenses | (549) | (97) | (65) | (711) | ||
Other operating revenue (expenses) & eq. pick-up | 64 | (184) | 7 | (114) | ||
Impairment Malha Sul | - | (3,149) | - | (3,149) | ||
Depreciation and amortization | 1,696 | 489 | 118 | 2,303 | ||
EBITDA | 6,971 | (2,382) | 143 | 4,732 | ||
EBITDA margin (%) | 62.8% | -110.6% | 20.9% | 34.0% | ||
Non-recurring adjustments | (169) | 3,149 | - | 2,980 | ||
Adjusted EBITDA | 6,802 | 768 | 143 | 7,713 | ||
Adjusted EBITDA margin (%) | 61.3% | 35.7% | 20.9% | 55.0% |
Earnings Release
4Q24
Northern Operation
4Q24 | 4Q23 | Chg. % | Operational data | 12M24 | 12M23 | Chg. % |
16,231 | 15,497 | 4.7% | Total transported volume (millions RTK) | 63,615 | 60,647 | 4.9% |
13,791 | 13,718 | 0.5% | Agricultural products | 55,561 | 54,196 | 2.5% |
2 | 10 | -80.0% | Soybean | 17,505 | 17,351 | 0.9% |
2,750 | 2,409 | 14.2% | Soybean meal | 10,762 | 9,705 | 10.9% |
8,622 | 9,298 | -7.3% | Corn | 19,376 | 20,186 | -4.0% |
722 | 545 | 32.8% | Sugar | 2,488 | 1,917 | 29.8% |
1,695 | 1,457 | 16.4% | Fertilizers | 5,431 | 5,037 | 7.8% |
2,440 | 1,778 | 37.2% | Industrial products | 8,053 | 6,451 | 24.8% |
1,235 | 1,209 | 2.2% | Fuels | 4,856 | 4,320 | 12.4% |
1,205 | 570 | >100% | Industrials | 3,198 | 2,131 | 50.1% |
148.5 | 114.6 | 29.6% | Average transportation yield | 158.2 | 124.2 | 27.3% |
Transported volume in the Northern Operation reached 16.2 billion RTK in 4Q24 and 63.6 billion RTK for the full year, reflecting 5% growth in both comparisons. In the quarter, the ramp-upof Suzano's new plant drove higher hardwood pulp transportation, while fertilizer shipments increased, aligning with an 8% rise in Mato Grosso's imports during the period. Over the full year, volume growth was well-balancedacross Rumo's key cargo segments.
4Q24 | 4Q23 | Chg. % | Financial data | 12M24 | 12M23 | Chg. % |
(Amounts in BRL mln) | ||||||
2,830 | 1,997 | 41.8% | Net revenue | 11,097 | 8,346 | 33.0% |
2,410 | 1,776 | 35.7% | Transportation | 10,061 | 7,535 | 33.5% |
206 | 183 | 12.7% | Logistic solution | 749 | 661 | 13.3% |
215 | 38 | >100% | Other revenues1 | 287 | 150 | 91.3% |
(1,483) | (1,239) | 19.7% | Costs of services | (5,336) | (4,706) | 13.4% |
(729) | (509) | 43.2% | Variable costs | (2,339) | (2,059) | 13.6% |
(317) | (336) | -5.8% | Fixed costs | (1,306) | (1,166) | 12.0% |
(437) | (394) | 10.9% | Depreciation and amortization | (1,692) | (1,481) | 14.3% |
1,347 | 758 | 77.8% | Gross profit | 5,760 | 3,640 | 58.2% |
47.6% | 38% | 10 p.p. | Gross margin (%) | 51.9% | 43.6% | 8 p.p. |
(187) | (146) | 28.1% | Selling, general and administrative expenses | (549) | (460) | 19.2% |
(65) | 51 | >100% Other op. revenue (expenses) and equity pick- | 64 | 74 | -13.5% | |
up | ||||||
438 | 395 | 11% | Depreciation and amortization | 1,696 | 1,487 | 14.0% |
1,533 | 1,058 | 44.9% | EBITDA | 6,971 | 4,741 | 47.0% |
54.2% | 53.0% | 1 p.p. EBITDA margin (%) | 62.8% | 56.8% | 6 p.p. | |
- | - | >100% Non-recurring adjustments² | (169) | - | >100% | |
1,533 | 1,058 | 44.9% | Adjusted EBITDA | 6,802 | 4,741 | 43.5% |
54.2% | 53.0% | 1 p.p. | Adjusted EBITDA margin (%) | 61.3% | 56.8% | 4 p.p. |
- It includes revenue from the pass-through fee of other railways, and revenue from volumes contracted and not executed according to commercial agreements (take-or-pay) and others.
² For better comparability, the result was adjusted for non-recurring effects, namely: 2Q24: EBITDA - R$ 169 million | price adjustment related to the sale of Rumo's 80% equity interest in the T16 and T19 terminals in Santos.
Net operating revenue reached R$ 2,830 million in the quarter and R$ 11,097 million for the full year, representing growth of 42% and 33%, respectively. This increase was driven by higher transported volumes and higher average transportation yields.
Variable costs increased 43% in the quarter and 14% for the full year, primarily due to higher transported volumes and rising unit biofuel costs. In the quarter, one-off variations in other variable costs were driven by: (i) Booking of R$ 90 million in costs at Rumo SA, offset by revenue at Rumo Malha Paulista, with no impact on consolidated results; and (ii) A lower impact from take-or-pay penalties compared to the previous year. Fixed costs and SG&A expenses rose by R$ 23 million in the quarter and R$ 230 million for the full year, representing increases of 5% and 14%, respectively.
Adjusted EBITDA reached R$ 1,533 million in 4Q24 and R$ 6,802 million in 2024, increasing 45% and 44%, respectively. In addition to higher transported volumes, margin expansion was the main driver of growth.
Earnings Release
4Q24
Southern Operation
4Q24 | 4Q23 | Chg. % | Operational data | 12M24 | 12M23 | Chg. % |
2,560 | 3,061 | -16.4% Transported volume (million RTK) | 12,072 | 12,789 | -5.6% | |
2,195 | 2,527 | -13.2% | Agricultural products | 10,217 | 10,169 | 0.5% |
441 | 502 | -12.1% | Soybean | 4,877 | 3,960 | 23.1% |
204 | 188 | 8.6% | Soybean meal | 820 | 791 | 3.7% |
710 | 820 | -13.5% | Corn | 1,165 | 2,016 | -42.2% |
668 | 847 | -21.1% | Sugar | 2,797 | 2,803 | -0.2% |
89 | 65 | 36.0% | Fertilizers | 299 | 245 | 22.0% |
83 | 105 | -21% | Other | 260 | 354 | -26.7% |
365 | 533 | -31.5% | Industrial products | 1,855 | 2,620 | -29.2% |
162 | 325 | -50.2% | Fuel | 983 | 1,546 | -36.4% |
203 | 208 | -2.3% | Industrial | 872 | 1,074 | -18.8% |
159.5 | 144.4 | 10.5% | Average transportation yield | 174.7 | 153.9 | 13.5% |
The Southern Operation transported 2.6 billion RTK in 4Q24 and 12.1 billion RTK in 2024, reflecting declines of 16% and 6%, respectively. In 2Q24, extreme weather events in Rio Grande do Sul caused damage to the Malha Sul railway infrastructure, leading to the indefinite shutdown of Tronco Sul. This directly disrupted the transportation flow of fuel and industrial products. Additionally, in 4Q24, the agricultural cargo portfolio was impacted by lower transported sugar volumes and a decline in corn exports.
4Q24 | 4Q23 | Chg. % | Financial data | 12M24 | 12M23 | Chg. % | |
(Amounts in BRL mln) | |||||||
424 | 451 | -6.0% | Net operating revenue | 2,154 | 2,033 | 6.0% | |
408 | 442 | -7.7% | Transportation | 2,109 | 1,968 | 7.2% | |
16 | 10 | 60.0% | Other revenues1 | 46 | 65 | -29.3% | |
(356) | (419) | -15.0% | Cost of services | (1,595) | (1,644) | -3.0% | |
(105) | (113) | -7.1% | Variable costs | (458) | (452) | 1.3% | |
(158) | (156) | 1.3% | Fixed costs | (648) | (605) | 7.1% | |
(92) | (151) | -39.1% | Depreciation and amortization | (489) | (587) | -16.7% | |
68 | 32 | >100% | Gross profit | 559 | 389 | 43.7% | |
16.1% | 7.1% | 9 p.p. | Gross margin (%) | 26.0% | 19.1% | 7 p.p. | |
(30) | (27) | 11.1% | Selling, general and administrative expenses | (97) | (88) | 10,2% | |
(51) | (44) | 16,3% | Other op. revenue (expenses) and equity pick-up | (184) | (104) | 77,0% | |
(465) | - | - | Impairment Rumo Malha Sul | (3,149) | - | - | |
92 | 151 | -39.1% | Depreciation and amortization | 489 | 588 | -16.8% | |
(387) | 111 | <100% | EBITDA | (2,382) | 785 | <100% | |
-91.2% | 24.6% | -116 p.p. | EBITDA margin (%) | -110.6% | 38.6% | -149 p.p. | |
465 | - >100% | Non-recurring adjustments² | 3,149 | - | >100% | ||
79 | 111 | -28.8% | Adjusted EBITDA | 768 | 785 | -2% | |
18.6% | 24.6% | -6. p.p. | Adjusted EBITDA margin (%) | 35.7% | 38.6% | -3 p.p. |
1It includes revenue from volumes contracted and not executed according to commercial agreements (take-or-pay).
2For better comparability, the result was adjusted for non-recurring effects, specifically: 4Q24: EBITDA - R$ 465 million | impairment provision
in the Malha Sul, with no cash flow effect. 3Q24: EBITDA - R$ 109 million | provision for impairment at Malha Sul, with no cash flow impact.
2Q24: Adjusted EBITDA - R$ 2,575 million | provision for impairment at Malha Sul, with no cash flow impact.
Net operating revenue totaled R$ 424 million in the quarter and R$ 2,154 million for the full year, reflecting a 6% decline in the quarter and 6% growth for the year. The increase in the average transportation yields offset the lower transported volumes, mitigating the impact on the Southern Operation's revenue.
Variable costs decreased 7% in the quarter but rose 1% for the full year, directly influenced by lower transported volumes. Fixed costs and SG&A expenses increased by R$ 5 million in the quarter and R$ 53 million for the year, representing growth of 3% and 8%, respectively.
The Company recorded a non-cash impairment provision of R$ 465 million in the quarter and R$ 3.149 billion for the full year.
Adjusted EBITDA reached R$ 79 million in 4Q24 and R$ 768 million in 2024, declining 29% and 2%, respectively, primarily reflecting the impact of lower transported volumes, as previously mentioned.