Armac Locação Logística e Serviços (ARML3) Q4 2025 earnings summary

Executive summary

• Navigated a challenging macroeconomic environment with high interest rates, focusing on operational adaptation, commercial review, and asset liquidity to drive profitability and growth.

• Gross revenue for 4Q25 reached R$541.4 million, up 4.4% year-over-year, with used asset sales surging 141.4% to R$111.2 million.

• Rental fleet expanded 7.2% year-over-year to 12,587 units by 4Q25, with a milestone of 14,000 units reached after recent acquisitions.

• Three acquisitions in 2025 (Termov, Braslift, Engelog) are expected to add R$100 million in EBITDA in 2026.

• Achieved strong cash generation and EBITDA margin recovery to 50%, positioning for robust growth in 2026.

Financial highlights

• Gross revenue for Q4 2025 was R$541.4 million, up 4.4% year-over-year; annual revenue surpassed R$2 billion, a 5% increase.

• Rental revenue declined 5.3% year-over-year to R$420 million due to contract terminations and demobilizations.

• Sales of pre-owned assets reached R$111.2 million in Q4, up 141.4% year-over-year.

• Operating management cash flow was R$160.3 million in Q4 and over R$950 million for the year.

• EBITDA for Q4 was R$289 million, with annual EBITDA exceeding R$980 million.

Outlook and guidance

• 2026 priorities include integrating acquisitions, maintaining margin and working capital gains, deleveraging, and selective growth.

• Management targets leverage near 2.0x net debt/EBITDA and continued market share expansion, despite a challenging macroeconomic environment.

• Focus on investing only where incremental returns exceed capital cost, preserving margins and working capital.

• Expansion of used equipment store network planned, aiming to double locations by year-end 2026.

• Forward-looking statements highlight growth expectations amid market uncertainties.