Localiza Rent a Car (RENT3) Q3 2025 earnings summary

Executive summary

• Achieved net revenue of R$10.7 billion, EBITDA of R$3.5 billion, EBIT of R$2.3 billion, and net income of R$871 million in 3Q25, with annualized ROIC at 15.4% and a 5.3 p.p. spread over cost of debt, reflecting strong operational and financial execution.

• Consolidated net revenue rose 10.8% year-over-year in 3Q25, driven by growth across all business segments.

• Strategic focus on innovation, operational efficiency, and customer experience, including AI-powered virtual assistants and digital pickup, driving productivity and high NPS scores.

• Record sales in Seminovos, with over 75,000 cars sold and a reduction in average car age at sale, supporting fleet rejuvenation and cost efficiency.

• One-off IPI tax reduction impact of R$929 million pre-tax, with adjusted results excluding this effect for year-over-year comparisons.

Financial highlights

• Consolidated revenues grew 10.8% year-over-year to R$10.7 billion; rental revenue up 6.1% to R$4.9 billion, Seminovos revenue up 15.1% to R$5.8 billion.

• Adjusted consolidated EBITDA rose 6.8% year-over-year to R$3.5 billion, with car rental EBITDA margin at 67.7% and fleet rental margin at 73.4%.

• Adjusted net income increased 7.3% year-over-year to R$871 million, driven by higher EBITDA and partially offset by increased financial expenses.

• Adjusted EBIT for 3Q25 was R$2.3 billion, up 11.2% year-over-year.

• Free cash flow before interest for the nine months totaled R$4.5 billion.

Outlook and guidance

• Expectation of stable or gradually improving margins, with focus on maintaining ROIC spread and cost efficiency.

• 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., company may resume accelerated growth and market consolidation.

• Ongoing focus on restoring ROIC spread, cost discipline, and operational excellence.

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