Mills Locação, Serviços e Logística (MILS3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 419.5 million in 3Q24, up 21% year-over-year, driven by expansion in new rental products, cross-selling initiatives, and portfolio diversification.

• Adjusted EBITDA reached BRL 199 million with a margin of 47.4%, and net income was BRL 71 million, reflecting consistent value generation and profitability.

• Investments totaled BRL 173 million, with 92.9% allocated to rental assets, increasing production capacity and supporting strategic market expansion.

• Maintained leadership as the largest access equipment rental company in Latin America, ranking 22nd globally, with over 110 service locations and inclusion in ESG indices.

• Consolidated net income margin was 16.9% in 3Q24.

Financial highlights

• Net revenue grew 21% year-over-year to BRL 419.5 million in 3Q24.

• Adjusted EBITDA increased 11.5% year-over-year to BRL 199 million, with a 47.4% margin.

• Net income rose 6.1% year-over-year to BRL 71 million; cash net income was BRL 113.4 million, with a 27% margin.

• Operating cash flow reached BRL 204.6 million, up 9.4% year-over-year.

• Free cash flow was negative due to strong investments in rental assets.

Outlook and guidance

• Optimism for margin recovery in the fourth quarter as utilization rates ramp up and price pressures stabilize.

• Continued focus on sustainable growth, product portfolio expansion, and long-term contracts to reduce exposure to cyclical sectors.

• No significant changes expected in leverage, with net debt-to-EBITDA targeted to remain at 1.2x barring major M&A.

• Strategy includes strong cash generation, responsible leverage, and expansion of multi-product offerings.

• Enhanced cash flow predictability and new cross-selling opportunities through portfolio diversification.