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 for 2024 totaled BRL 11.9 billion (+13.2% YoY), and net income was BRL 1.8 billion, with a ROIC spread of 3.1 percentage points, improving to 5.0 points in 2H 2024.

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

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

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

Financial highlights

• Car Rental revenue grew 16.8% year-over-year in 2024; Fleet Rental up 25.1%; Seminovos up 37.3% with 280,000 cars sold (+26.4% YoY).

• 4Q 2024 consolidated net revenue was BRL 9.9 billion (+24.6% YoY), EBITDA BRL 3.3 billion (+15.5% YoY), and profit BRL 837 million (+18.7% YoY).

• EBIT for 2024 was BRL 5.8 billion, with 4Q24 EBIT up 12.5% to BRL 2.0 billion.

• Free cash flow before interest payments reached BRL 3.3 billion in 2024, reversing a prior year outflow.

• Fleet size at year-end: 669,362 cars (+21% YoY).

Outlook and guidance

• 2025 priorities: scale Seminovos, maintain price discipline, drive cost and productivity efficiency, optimize segment portfolio, enhance customer experience, and complete integration.

• Management expects continued positive cash generation and further leverage reduction, despite macroeconomic headwinds.

• Depreciation guidance for 1Q25: BRL 6,300–7,300 per car (Car Rental), BRL 6,800–7,800 (Fleet Rental light vehicles).

• Monitoring macroeconomic risks: rising interest rates, economic slowdown, and tighter credit.