Mills Locação, Serviços e Logística (MILS3) Q3 2025 earnings summary

Executive summary

• Achieved record net revenue of BRL 482.7 million in 3Q25 (up 15.1% YoY) and BRL 1,345.3 million in 9M25 (up 17.7% YoY), driven by balanced growth across business units and the Next Rental acquisition.

• Adjusted EBITDA rose 27.9% to BRL 254.6 million in 3Q25 (margin 52.7%), with 9M25 Adjusted EBITDA at BRL 688.3 million (margin 51.2%).

• 55% of rental revenue now comes from long-term contracts, enhancing revenue predictability.

• Acquisition of Next Rental in August added 738 assets and expanded presence in resilient sectors.

• Cash net income reached BRL 117.9 million in 3Q25 (margin 24.4%) and BRL 363.4 million in 9M25 (margin 27.0%).

Financial highlights

• Gross revenue in 3Q25 was BRL 529.6 million, up 15.0% YoY; 9M25 gross revenue was BRL 1,478.5 million, up 18.0%.

• Adjusted operating cash flow in 3Q25 was BRL 224.7 million (+9.9% YoY), with EBITDA-to-cash conversion at 99.6%.

• Leverage stable at 1.5x Net Debt/Adjusted EBITDA; average debt cost at CDI + 1.28% p.a. and average maturity of 3.6 years.

• CapEx in 3Q25 totaled BRL 261.2 million, with 93% allocated to rental assets; 9M25 CapEx was BRL 595.4 million.

• Distribution of BRL 42.5 million in interest on equity, representing a 63% payout of quarterly net income.

Outlook and guidance

• Focus remains on sustainable growth, operational efficiency, and disciplined capital allocation, with continued expansion in long-term contracts and diversification across resilient sectors.

• Management expects continued competitive pressure in light equipment, with no significant change in the scenario anticipated.

• ROIC for LTM ended September 2025 at 19.7%, with expectations for gradual return to historical levels as new investments mature.