Localiza Rent a Car (RENT3) Q4 2024 earnings summary

Executive summary

• Consolidated net revenue reached BRL 37.3 billion in 2024, up 29% year-over-year, with strong growth across Car Rental, Fleet Rental, and Seminovos divisions.

• EBITDA totaled BRL 11.9 billion (+13.2% YoY), and net income was BRL 1.8 billion, with ROIC spread at 3.1p.p., improving to 5.0p.p. in 2H24.

• Strategic focus included scaling Seminovos, price reconstitution, cost efficiency, portfolio optimization, customer experience, and systemic integration.

• Expanded digital capabilities, improved customer experience, and recognized as a top employer and for ESG leadership.

• Cash generation from rental activities improved significantly, enabling deleveraging and increased shareholder returns.

Financial highlights

• 4Q24 consolidated net revenue was BRL 9.9 billion (+24.6% YoY); EBITDA was BRL 3.3 billion (+15.5% YoY); net income for 4Q24 was BRL 837 million (+18.7% YoY).

• Car Rental net revenue for 2024 was BRL 9.6 billion (+16.8% YoY); Fleet Rental BRL 8.4 billion (+25.1% YoY); Seminovos BRL 19.2 billion (+37.3% YoY); 280,000 cars sold (+26.4% YoY).

• Free cash flow before interest payments reached BRL 3.3 billion in 2024, reversing a BRL 2.9 billion consumption in 2023.

• Fleet grew 21% to 669,362 cars by year-end.

• Interest on equity distributed totaled BRL 1.68 billion, representing 86.7% of net income.

Outlook and guidance

• 2025 priorities: scale Seminovos, reestablish rental prices, drive cost and productivity efficiency, optimize segment portfolio, enhance customer experience, and complete systemic integration.

• Expect continued price adjustments to offset higher interest rates and maintain profitability.

• Depreciation per car in 1Q25 guided at BRL 6,300–7,300 for Car Rental and BRL 6,800–7,800 for Fleet Rental light vehicles.

• Monitoring macroeconomic risks, including rising interest rates and tighter credit, which may slow fleet rejuvenation but not lead to aging the fleet.

• No formal depreciation guidance for 2025; company will monitor market and adjust as needed.