Mills Locação, Serviços e Logística (MILS3) Q1 2026 earnings summary

Executive summary

• Achieved record net income of BRL 197.0 million in Q1 2026, up 190.1% year-over-year, driven by operational efficiency, non-recurring tax credits, and PERSE program benefits.

• Net revenue reached BRL 461.2 million, up 11.8% year-over-year, with strong performance in rental, heavy equipment, intralogistics, and formwork/shoring segments.

• Maintained a strong capital structure with leverage at 1.1x Net Debt/Adjusted EBITDA, supporting financial flexibility and growth.

• Advanced ESG agenda, including first-time inclusion in B3's Corporate Sustainability Index and progress in decarbonization and social initiatives.

• Completed the acquisition of Next Rental, expanding equipment portfolio and geographic reach.

Financial highlights

• Net revenue: BRL 461.2 million (+11.8% YoY); adjusted EBITDA: BRL 235.1 million (+13.8% YoY), margin 51.0%.

• Net income: BRL 197.0 million (+190.1% YoY), with a record net margin of 42.7%, impacted by non-recurring tax credits.

• Adjusted operating cash flow: BRL 220.8 million (+46.3% YoY); EBITDA-to-cash conversion: 82.5%.

• CapEx: BRL 96.7 million (-43.6% YoY), with 89% allocated to rental assets.

• Cash and cash equivalents increased to BRL 540.9 million from BRL 434.4 million at year-end 2025.

Outlook and guidance

• Continued focus on expanding long-term contracts and increasing revenue recurrence, particularly in heavy equipment and intralogistics.

• Expectation to resume postponed investments as equipment deliveries and construction projects normalize.

• Strong project pipeline in infrastructure and urban mobility supports positive outlook for 2026.

• ROIC expected to gradually converge toward historical levels as recent investments mature.