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

Executive summary

• Gross revenue for Q4 2025 reached R$541.4 million, up 4.4% year-over-year, with annual revenue at R$2,049.5 million, up 5.0% year-over-year; used asset sales surged 141.4% in Q4 to R$111.2 million.

• Operational cash flow exceeded R$950 million in 2025, supporting investments in fleet renewal, acquisitions, and dividends while reducing net debt.

• Three acquisitions (Termov, Braslift, Engelog) completed in 2025, expanding presence in forklifts and yellow line equipment, with expected EBITDA contribution of R$100 million in 2026.

• Rental fleet expanded to 12,587 units by year-end 2025, reaching 14,000 after acquisitions.

• Management focused on empowering local decision-making, exiting unprofitable contracts, and building a high-performance, diverse team.

Financial highlights

• Rental EBITDA for Q4 2025 was R$188.1 million, up 8.8% year-over-year, with a margin of 49.5% (+6.0 p.p. YoY); annual EBITDA exceeded R$980 million.

• Net income for Q4 2025 was R$29.7 million, up 162.8% year-over-year, but full-year net income fell 58% to R$73.8 million.

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

• Free cash flow for equity was R$393 million in 2025.

• Total CAPEX in 2025 was R$845.4 million (+19.8% YoY), with Q4 CAPEX at R$364.3 million (+408% YoY).

Outlook and guidance

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

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

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