Localiza Rent a Car (RENT3) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 results with consolidated net revenue of R$10.1 billion, EBITDA of R$3.3 billion, and net income of R$842 million, up 14.8% year-over-year, driven by fleet renewal, price adjustments, and cost efficiency.

• Strategic priorities included scaling Seminovos, rental price recomposition, productivity, portfolio optimization, customer experience, and system integration.

• Fleet was reduced by about 41,000 cars after the peak season to improve utilization and productivity, aligning with productivity goals.

• Continued cost management, tariff adjustments, and business portfolio optimization supported results.

Financial highlights

• Consolidated net revenue reached R$10.1 billion, up 16.7% year-over-year; EBITDA was R$3.3 billion (+13.9% YoY); net income was R$842 million (+14.8% YoY).

• EBIT for Q1 2025 was R$2.1 billion, up 11.5% year-over-year.

• Car Rental net revenue grew 9.1% YoY to R$2.57 billion, Fleet Rental net revenue up 13.3% YoY to R$2.24 billion, and Seminovos net revenue up 22.2% YoY to R$5.3 billion.

• 74,720 cars sold in Seminovos (+15% YoY), with network expanded to 244 stores.

• Annualized ROIC was 13.7%, with a 4.4 p.p. spread over post-tax cost of debt.

Outlook and guidance

• Focus remains on restoring ROIC spread, cost efficiency, and integrating fleet rental systems for further synergies in H2 2025.

• Expect stable rental volumes and continued tariff adjustments to support ROIC spread.

• Depreciation per car remains within guidance; no new guidance will be issued, but ongoing monitoring will continue.

• Tax rate expected in the high teens for the remainder of the year, after one-off benefits in Q1.