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 rental revenue expansion and operational excellence.

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

• Net income was R$67.9 million, with a net margin of 16.5%, and cash net income was R$93.6 million, with a 22.7% margin.

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

• Interest on equity payout for 1Q25 totaled R$13.7 million.

Financial highlights

• Rental net revenue grew 20.1% to R$381.6 million, with long-term contracts rising to 47% of rental revenue from 32% a year ago.

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

• CapEx for the quarter was R$171.2 million, with 95.3% allocated to rental asset acquisitions.

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

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

Outlook and guidance

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

• No change in 2025 outlook; disciplined capital allocation continues amid challenging macroeconomic conditions and rising interest rates.

• Focus remains on sustainable growth, operational excellence, and expansion in Heavy Rental and Intralogistics, with secured revenue for 2025 through new agreements.

• Strong infrastructure project pipeline supports positive medium- and long-term demand outlook.

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