Mills Locação, Serviços e Logística (MILS3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$412.4 million in 1Q25, up 16.8% year-over-year, driven by strong rental growth, expansion in Heavy Rental and Intralogistics, and effective strategy execution.

• Adjusted EBITDA rose 21.4% to R$206.5 million, with a margin of 50.1%, reflecting operational efficiency and disciplined cost management.

• Net income was R$67.9 million, stable year-over-year, with a net margin of 16.5%.

• Cash net income increased to R$93.6 million, with a cash net margin of 22.7%.

• Received the IAPA Sustainability Award 2025, highlighting ESG leadership.

Financial highlights

• Rental net revenue grew 20.1% to R$381.6 million; long-term agreements now represent 47% of rental revenue, up from 32% in 1Q24.

• Adjusted operating cash flow was R$151.0 million, up 29.9% year-over-year; EBITDA-to-cash conversion reached 73.2%.

• CapEx totaled R$171.2 million, with 95.3% allocated to rental assets.

• Leverage (Net Debt/Adjusted EBITDA) at 1.4x, with gross debt of R$1.8 billion and cash of R$715.9 million.

• ROIC for the last twelve months was 20.0%; ROE at 19.4%.

Outlook and guidance

• Focus remains on sustainable growth, operational excellence, and disciplined capital allocation amid challenging macroeconomic conditions.

• Continued expansion in Heavy Rental and Intralogistics, with secured revenue for 2025 through new agreements.

• Strong infrastructure project pipeline and diversified portfolio support positive medium- and long-term demand.

• CapEx for 2025 expected to be lower than 2024, with investments concentrated in 1Q and 2Q.

• Ongoing evaluation of organic and inorganic growth opportunities aligned with strategic vision.