Localiza Rent a Car (RENT3) Q2 2025 earnings summary

Executive summary

• Achieved solid results in 2Q25, focusing on restoring ROIC spread and operational efficiency amid a challenging macroeconomic environment.

• Price increases and cost management drove revenue and margin expansion in Car and Fleet Rental divisions.

• Integration of Locamerica and system upgrades enabled synergies, operational simplification, and cost efficiencies.

• Digital initiatives improved customer experience, with record digital pick-ups in Car Rental.

• Consolidated net revenue reached R$9.9 billion, EBITDA R$3.3 billion, and EBIT R$2.0 billion in 2Q25.

Financial highlights

• Consolidated net revenue grew 9.4% year-over-year to R$9.9 billion in 2Q25.

• EBITDA increased 40.1% year-over-year to R$3.3 billion; EBIT was R$2.0 billion.

• Adjusted net income was R$768 million; accounting loss of R$169 million due to non-cash write-off of Locamerica tax credits.

• Annualized ROIC at 13.7%, with a 4.1 p.p. spread over after-tax cost of debt.

• Net debt totaled R$31.3 billion, with net debt/EBITDA LTM at 2.36x and net debt/fleet value at 0.59x.

Outlook and guidance

• Expect to capture R$2.3 billion in cash tax benefits over five years from goodwill amortization, offsetting the tax credit write-off.

• Anticipate a one-off pre-tax impact of R$800 million to R$1 billion in 3Q25 due to IPI tax reduction affecting car values.

• Strategy remains focused on price recovery, cost efficiency, and disciplined capital allocation, with ongoing margin expansion expected.