Localiza Rent a Car (RENT3) Q3 2025 earnings summary

Executive summary

• Net revenue for 3Q25 reached R$10.7 billion, up 10.8% year-over-year, with adjusted EBITDA of R$3.54 billion (+6.8% YoY), EBIT of R$2.3 billion (+11.2% YoY), and adjusted net income of R$871 million (+7.3% YoY), despite a one-off R$929 million pre-tax impact from the IPI tax reduction; annualized ROIC was 15.4% with a 5.3 p.p. spread over cost of debt.

• Strategic focus on operational efficiency, innovation, and customer experience, with digital initiatives such as AI-powered assistants and FAST Digital Pickup driving productivity and high NPS scores.

• Record used car (Seminovos) sales with 75,473 cars sold, supporting fleet rejuvenation and cost efficiency.

• Continued investments in technology, cloud, and AI to strengthen competitive positioning and stakeholder value.

Financial highlights

• Consolidated rental revenue grew 6.1% to R$4.9 billion; Seminovos revenue rose 15.1% to R$5.8 billion year-over-year.

• Adjusted EBITDA margin for Car Rental reached 67.7% and Fleet Rental 73.4%; free cash flow before interest for 9M25 was R$4.5 billion.

• Net debt stood at R$31.1 billion (0.60x fleet value, 2.33x EBITDA LTM), with R$12.3 billion in cash covering short-term obligations.

• Basic EPS for 3Q25 was R$0.24595; diluted EPS R$0.24318.

Outlook and guidance

• Focus on restoring ROIC spread, cost discipline, and operational excellence, with ongoing optimization of fleet mix and reduction of severe-use contracts.

• Targeting 1 million contracts in Car Rental by 2025, leveraging digital and AI-driven customer journeys.

• Anticipate gradual increase in used car sales volume to reach optimal fleet age, targeting 85,000 cars sold per quarter to achieve 15-month average age.

• If interest rates decline and ROIC spread reaches 7–8 p.p., may resume accelerated growth and market consolidation.