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

Executive summary

• Net revenue reached R$472.2 million in 2Q26, up 4.9% year-over-year, and R$933.3 million in 6M26, up 8.2% year-over-year, driven by Heavy Equipment and Formwork & Shoring units.

• Adjusted EBITDA grew 18.3% to R$268.9 million in 2Q26, with margin expanding 6.5 p.p. to 56.9%; 6M26 adjusted EBITDA was R$504.0 million, up 16.2%.

• Net income rose 21.7% to R$106.3 million in 2Q26, with a net margin of 22.5%; 6M26 net income was R$303.3 million, up 95.4%.

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

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

Financial highlights

• Adjusted EBITDA margin reached 56.9% in 2Q26, up 6.5 p.p. YoY; adjusted operating cash flow in 2Q26 was R$188.3 million (+23.2% YoY).

• CapEx in 2Q26 was R$88.6 million, down 45.6% YoY; 91% allocated to rental assets.

• Leverage (Net Debt/Adjusted EBITDA) at 1.16x, down 0.2x YoY; net margin at 22.5%.

• ROE (LTM) was 26.5%, ROIC (LTM) reached 21.7%.

• Cash and cash equivalents increased to R$470.3 million as of June 30, 2026.

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.

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

• Regulatory approval for the Loxam SAS transaction is pending, which could impact future strategic direction.