Localiza Rent a Car (RENT3) Q4 2025 earnings summary

Executive summary

• Achieved strong execution of strategic priorities in 2025, including scaling used car (Seminovos) sales, price recomposition in rental segments, and cost efficiency improvements, with significant progress in all business divisions and consistent value generation.

• Sold over 296,000 cars (+5.9% YoY), expanded Seminovos network by 21 stores, and set a quarterly record with 77,358 cars sold in 4Q25 (+7.8% YoY).

• Completed system integration and corporate simplification, including Locamerica incorporation and divestment of Voll stake for R$382 million, generating a 5x return on investment.

• Recognized for innovation, customer service, and sustainability, with NPS above 85% and ranking as the 7th most valuable brand in Brazil.

• Expanded digitalization, AI-driven customer service, and operational excellence.

Financial highlights

• Consolidated net revenue for 2025 was R$41.8 billion, up 12.1% year-over-year; 4Q25 revenue was R$11.0 billion (+11.7% YoY).

• EBITDA reached R$13.8 billion in 2025 (+15.4% YoY); 4Q25 EBITDA was R$3.7 billion (+12.1% YoY).

• Adjusted net income for 2025 was R$3.4 billion; reported net income was R$1.87 billion, impacted by IPI reduction and tax loss write-off.

• Free cash flow before interest and other effects was R$6.3 billion, nearly doubling from 2024.

• Net debt at year-end was R$31.1 billion, with a net debt to fleet value ratio of 0.57x and net debt/EBITDA of 2.26x.

Outlook and guidance

• 2026 focus remains on restoring ROIC spread to target levels, rejuvenating the fleet, and maintaining strong Seminovos sales pace.

• Investments planned in brand, network, and technology to reinforce leadership and long-term value creation.

• Growth in 2026 will be moderate, balancing pricing and volume, with a larger growth cycle expected in 2027.

• Continued focus on productivity gains, fleet optimization, and reduction of average vehicle age and mileage.