Armac Locação Logística e Serviços (ARML3) Q1 2026 earnings summary

Executive summary

• Gross revenue reached R$488.5 million in 1Q26, up between 1.4% and 4.4% year-over-year, with a 6.3% drop in rental revenue and a 73.2% increase in asset sales revenue.

• Adjusted EBITDA rose 38.3% year-over-year to R$213.5 million, driven by operational efficiency and R$42.0 million in non-cash gains from acquisitions.

• Net income attributable to controlling shareholders was R$-3.3 million, while consolidated net income was R$13.3 million, up 6.3% year-over-year, impacted by non-recurring items and acquisition accounting.

• Two major acquisitions (Engelog and Braslift) were completed and consolidated, with investment in Escad announced in April 2026.

• Management is leveraging strong liquidity (R$1,042.4 million in cash) and capital structure to pursue growth, fleet renewal, and market consolidation.

Financial highlights

• Gross revenue: R$488.5 million (+1.4% YoY); rental revenue: R$378.3 million (-6.3% YoY); asset sales: R$110.2 million (+73.2% YoY).

• Adjusted EBITDA: R$213.5 million (+38.3% YoY); margin: 47.3% (+12.2 p.p. YoY).

• Net income: R$13.3 million (+6.3% YoY); adjusted net income: R$15.2 million (-6.4% YoY).

• Net debt: R$2,001.3 million (+20.8% YoY); Net debt/EBITDA: 2.37x; expanded Net Debt/EBITDA: 2.44x.

• Annualized Adjusted ROIC was 15.6%, up 2.2 p.p. year-over-year.

Outlook and guidance

• Management expects continued operational efficiency and margin improvement, with organic revenue growth projected in the low double digits for 2026 and EBITDA margins expected to exceed 50% for the full year.

• CAPEX guidance remains robust, with R$537.6 million invested in 1Q26, focused on fleet renewal, expansion, and M&A.

• Expansion of pre-owned equipment stores to at least 30 units by year-end, targeting annual used-asset sales capacity above R$1.0 billion.

• The company anticipates further deleveraging, leveraging strong cash generation and asset sales.

• Management highlights risks and uncertainties that could impact future results, including market and economic volatility.