Mills Locação, Serviços e Logística (MILS3) Q2 2026 earnings summary

Executive summary

• Net revenue reached BRL 472.2 million in Q2 2026, up 4.9% year-over-year, driven by Heavy Equipment and Formwork & Shoring units.

• Adjusted EBITDA was BRL 268.9 million, up 18.3% year-over-year, with margin expanding by 6.5 percentage points to 56.9%.

• Net income rose 21.7% year-over-year to BRL 106.3 million, with a net margin of 22.5%.

• Awarded the Pró-Ética seal for integrity, ethics, and compliance standards.

• Long-term contracts accounted for 55% of rental revenue, enhancing revenue predictability.

Financial highlights

• Adjusted operating cash flow reached BRL 188.3 million, up 23.2% year-over-year, with EBITDA-to-cash conversion at 66.2%.

• Capital expenditures were BRL 88.6 million, down 45.6% year-over-year, with 91% allocated to rental assets.

• Leverage (Net Debt/Adjusted EBITDA) declined to 1.16x, with gross debt stable and 95.1% of debt maturing in more than 12 months.

• Return on equity (LTM) was 26.5%; return on invested capital (LTM) was 21.7%.

• Net margin improved to 22.5% in Q2 2026 (+3.1 p.p. YoY).

Outlook and guidance

• Focus remains on expanding long-term contracts, operational efficiency, and sustainable growth.

• Some postponed investments may resume in H2 2026, depending on project progress.

• No further non-recurring events expected for Next Rental in upcoming quarters.

• Management remains cautious due to rising delinquency rates and a challenging macroeconomic environment.