Armac Locação Logística e Serviços (ARML3) investor relations material

Executive summary

• Q3 gross revenue reached a record R$653.2M, up 22.1% YoY; Rental & Services EBITDA was R$260.3M, up 31.2%, with a 56.5% margin.

• Consolidated net revenue was R$607.1M and net income was R$47.4M; 9M revenue totaled R$1,603.9M and net income R$68.3M.

• LTM adjusted EBITDA was R$945.1M, including Engelog, Braslift, Termov and Escad.

• Fourth consecutive quarter of sequential growth; management cited operating cash generation above 80% of EBITDA.

Financial highlights

• Rental & Services revenue rose 16.1% YoY to R$505.5M; asset sales revenue increased 71.3% to R$147.7M.

• Q3 gross profit was R$222.6M and operating income R$166.7M; net income was R$47.4M versus R$38.3M in Q3 2025.

• 9M Rental operating cash flow was R$565M; free cash flow to the firm was R$507M and free cash flow to equity R$201M.

• 9M net income included R$46.8M in preliminary bargain-purchase gains, a non-recurring item.

Outlook and guidance

• Short-term target is net debt/EBITDA below 2.0x within a few quarters, supported by operating cash generation and fleet renewal agreements.

• From 2027 for 3–5 years, fleet renewal agreements are expected to leave cash CapEx R$100M–R$200M annually below asset-sale inflows.

• Growth plans prioritize recycling underused assets and investing in higher-return assets without increasing employed capital.

• Demand for Terram warehouse projects is expected to remain at current levels over the next 24 months, supported by low vacancy and project backlog.

• Tax reform transition from 2026 to 2032 may affect revenue, asset sales, credits, pricing, contracts and systems; impacts remain uncertain pending regulation.