Tenda Alea Site Visit: Productivity Initiatives to Support Scale-Up and Profitability Improvement

Research evidence excerpt

Tenda Alea Site Visit: Productivity Initiatives to Support Scale-Up and Profitability Improvement

J P M O R G A N Latin America Equity Research

30 June 2026

Tenda Overweight

TEND3.SA, TEND3 BZ

Alea Site Visit: Productivity Initiatives to Support Scale- Price (30 Jun 26):R$36.55

Up and Profitability Improvement

Latin American Cement &

Today, we attended Tenda’s site visit in Ribeirão Preto (presentation here), where Construction / Real Estate

the company hosted a tour followed by a meeting with senior executives to discuss Marcelo Motta AC

Alea’s outlook and recent developments. Overall, the meeting reinforced our (55-11) 4950-6712

positive view on the company, reflecting Alea’s efforts to increase efficiency and marcelo.g.motta@jpmorgan.com

Banco J.P. Morgan S.A.

productivity, even though Alea should not be FCF-positive until year-end in our

Jonathan S. Koutras

view. Alea’s target return is to have the same ROIC as Tenda, even with a gross

(55-11) 4950-3549

margin 2-3pp below. We see Tenda trading at 5.3x P/E 27e vs CURY at 7.3x and jonathan.s.koutras@jpmchase.com

DIRR at 6.8x. Banco J.P. Morgan S.A.

Adrian E Huerta

• Alea’s business model. Divided into 3 major verticals; i) foundation; ii) (52-81) 8152-8720

assembly; and iii) finishing - where most of the current challenges are, adrian.huerta@jpmorgan.com

including; wet areas, ceiling, and wall finishing. The goal is to have each J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P.

construction region with a productivity of 1k units per year, having ~48 Morgan Grupo Financiero

employees vs ~85 currently, leading to an IP (productivity index) of 0.55, Garrett Greenblatt

which represents the construction of 4 houses per day that could increase with (1-212) 622-0424

garrett.greenblatt@jpmorgan.com

higher efficiency.