Mills Locação, Serviços e Logística (MILS3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$450.1 million in 2Q25 and R$862.5 million in 6M25, up 21.6% and 19.2% year-over-year, respectively, driven by rental growth and a focus on long-term contracts.

• Adjusted EBITDA was R$227.2 million in 2Q25, up 25.7% year-over-year, with a margin of 50.5%; net income was R$87.3 million, up 23% year-over-year.

• Acquisition of Next Rental for R$180 million in July 2025, adding 738 assets and expanding into mining, forestry, agribusiness, and construction sectors.

• Interest on equity payout of R$48.9 million announced for shareholders in Q2 2025.

• Focus on sustainable growth, operational efficiency, and disciplined capital allocation, with 50% of rental revenue from long-term contracts.

Financial highlights

• Net revenue: R$450.1 million in 2Q25, up 21.6% year-over-year; adjusted EBITDA: R$227.2 million, margin 50.5%.

• Net income: R$87.3 million in 2Q25, margin 19.4%; cash net income: R$151.9 million, margin 33.7%.

• Adjusted operating cash flow: R$114.3 million in 2Q25, up 31.2% year-over-year.

• CapEx: R$162.9 million in 2Q25, down 64.9% year-over-year, with 93.3% allocated to rental assets.

• Leverage: 1.4x net debt/EBITDA; gross debt: R$1.6 billion; net debt: R$1.1 billion as of June 30, 2025.

Outlook and guidance

• Margins expected to remain healthy, with ongoing focus on productivity, SG&A reduction, and operational excellence.

• CapEx for the second half to remain at similar levels, focused on heavy and Intra Logistics segments.

• Backlog and contract pipeline support strong performance into 2025 and 2026, with continued expansion in the Southern region and forestry sector.