Armac Locação Logística e Serviços (ARML3) investor relations material

Executive summary

• Gross revenue grew from 70 million in 2019 to 2 billion in 2025, with 2Q25 revenue at R$481.8–491.4 million, up 8.1% year-over-year, driven by a premium business model and strong asset sales.

• Adjusted Rental EBITDA reached R$168.5 million in 2Q25, up 11% sequentially, with margin improving by 3.7 p.p. to 45.6%.

• Operational cash flow for 1H25 surged to R$460 million, up 90–94.4% year-over-year, with annualized recurring managerial operating cash flow at R$540 million.

• Asset sales in 1H25 totaled R$138–138.5 million, up over 200% year-over-year, supporting fleet renewal and regional expansion.

• Major management restructuring, decentralization, and cost reduction initiatives were completed, positioning for sustainable growth.

Financial highlights

• Gross rental revenue for 1Q25 was R$409.5 million, up 1.4% sequentially, but down 3.2% year-over-year due to discontinued contracts.

• Adjusted rental EBITDA margin reached 45.6% in 2Q25, up 3.7 p.p. sequentially.

• Net loss of R$3.7–6.7 million in Q2, mainly due to nonrecurring expenses and higher financial costs.

• Asset sales gross margin was 7% in 1H25.

• Operational cash flow run rate is BRL 45 million per month.

Outlook and guidance

• Management expects continued margin improvement, targeting sustainable rental EBITDA margins above 50%.

• Net CapEx for 2025 is expected to be close to zero, with asset sales funding new investments and fleet renewal.

• Utilization rate is expected to return to 80% over the year, supporting revenue growth.

• Store network expansion to 20 units by year-end, with new stores maturing in 4–6 months.

• Regional expansion and proximity to clients remain strategic priorities.