Localiza Rent a Car (RENT3) Q4 2025 earnings summary

Executive summary

• Achieved consolidated net revenue of BRL 41.8 billion in 2025, up 12.1% year-over-year, driven by rental operations and expanded Seminovos sales.

• EBITDA reached BRL 13.8 billion, a 15.4% increase, reflecting tariff adjustments, productivity gains, and cost efficiency.

• Adjusted net income was BRL 3.4 billion; reported net income was BRL 1.87 billion, impacted by non-cash items including IPI reduction and tax loss write-off.

• Achieved strong execution of strategic priorities, including scaling used car sales, digitalization, and operational excellence, with NPS above 85%.

• Completed integration of Fleet Rental systems and Locamerica merger, enabling synergies, goodwill amortization, and corporate simplification.

Financial highlights

• Car Rental net revenue: BRL 10.4–10.5 billion (+8.0–8.1% YoY); Fleet Rental net revenue: BRL 9.1 billion (+8.6% YoY); Seminovos net revenue: BRL 22.1 billion (+15.1% YoY).

• EBITDA margin: 67% in Car Rental (vs. 62% in 2024), 72.6% in Fleet Rental (vs. 66.8% in 2024); Q4 2025 consolidated rental EBITDA margin 72.6%.

• Free cash flow before interest was BRL 6.3 billion, nearly doubling from 2024.

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

• Adjusted ROIC for 2025: 14.6%, with a 4.7 percentage point spread; annualized ROIC for Q4 2025: 15.5%, with a 5.5 p.p. spread.

Outlook and guidance

• 2026 focus 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 expected to be moderate, balancing pricing and volume, with a larger growth cycle anticipated in 2027.

• Continued focus on productivity gains, fleet optimization, and reduction of severe usage vehicles.

• No formal financial projections disclosed for 2025.