Mills Locação, Serviços e Logística (MILS3) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of R$432.6 million in 4Q24 and R$1.6 billion in 2024, up 17.8% and 14.3% year-over-year, reinforcing leadership in Brazil's equipment rental market.

• Adjusted EBITDA reached R$210.2 million in 4Q24 and R$760.1 million in 2024, growing 10.1% and 8.5% year-over-year, with margin expansion to 48.6%.

• Net income for 4Q24 was R$75.7 million (net margin 17.5%), and for 2024, R$285.2 million (net margin 18.1%).

• Advanced ESG initiatives, earning B Corp certification, inclusion in major sustainability indices, and multiple industry awards.

• Major acquisition of JM Empilhadeiras expanded the intralogistics segment and increased exposure to long-term contracts.

Financial highlights

• Net rental revenue grew 20.0% in 4Q24 and 16.6% in 2024, driven by long-term agreements (44% of rental revenue in 4Q24 vs. 33% in 4Q23).

• Adjusted operating cash flow was R$144.2 million in 4Q24 and R$552.1 million in 2024, up 21.7% and 24.3% year-over-year.

• Paid record dividends of R$143.3 million in 2024, 98.3% higher than 2023, with a 50% payout and 6.36% dividend yield.

• Capex totaled R$169.0 million in 4Q24 and R$994.5 million in 2024, with 91.6% allocated to rental assets.

• Free cash flow to firm was negative R$65.4 million in 4Q24 and negative R$337.8 million in 2024, reflecting high investment.

Outlook and guidance

• Strategy for 2025 focuses on disciplined capital allocation, cost efficiency, productivity, and expanding long-term agreements.

• CapEx for 2025 to be nearly half of 2024, focusing on heavy vehicles and intralogistics amid high interest rates.

• No deceleration observed in early 2025; focus remains on long-term contracts and productivity improvements.