Localiza Rent a Car (RENT3) Q1 2026 earnings summary

Executive summary

• Consolidated net revenue reached R$12.3 billion in 1Q26, up 21.2% year-over-year, with EBITDA of R$4.1 billion (+23.7%), EBIT of R$2.7 billion (+32.4%), and net income of R$1.2 billion (+45.0%).

• Excluding a R$177 million after-tax gain from subsidiary divestment, net income was R$1,045 million, surpassing R$1 billion in a quarter for the first time.

• Achieved record vehicle sales in Seminovos (95,384 units), with strong performance across Car Rental and Fleet Rental segments, supported by pricing management and operational efficiency.

• Investments in technology, digitalization, and AI, including the launch of an app integrated with ChatGPT, reinforced innovation leadership.

• Free cash flow before interest was robust at R$2.2 billion for the quarter.

Financial highlights

• Car Rental net revenue: R$2,789 million (+8.5% y/y); average daily rate up 7.0% to R$157.4; utilization rate at 82.1%.

• Fleet Rental net revenue: R$2,323 million (+3.8% y/y); average daily rate up 6.9% to R$107.5; utilization rate at 96.8%.

• Seminovos net revenue: R$7,106 million (+34.5% y/y); 95,384 vehicles sold, a record for the quarter.

• EBITDA margin: Car Rental 67.4% (+2.2 p.p. y/y), Fleet Rental 88.0% (75.9% ex-divestment, +5.9 p.p. y/y), Seminovos 3.1%.

• Net debt at R$30.2 billion, down 2.8% from year-end 2025; net debt/fleet value at 0.55x; net debt/EBITDA LTM at 2.08x.

Outlook and guidance

• Continued focus on disciplined capital allocation, sustainable growth, and value creation amid a competitive automotive market.

• Ongoing reduction in severe-use fleet exposure, targeting fewer than 10,000 vehicles by year-end 2026.

• Expansion of digital and AI initiatives to enhance customer experience and operational efficiency.

• Management highlighted ongoing price recomposition, cost management, and fleet optimization to sustain returns.

• Active debt management initiatives are expected to further reduce costs and extend debt duration.