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

Executive summary

• Achieved record net revenue of R$1.6 billion in 2024 (up 14.3%–14% YoY), with R$432.6 million in 4Q24, driven by rental and sales growth and leadership in Brazil's equipment rental market.

• Adjusted EBITDA reached R$760.1 million in 2024 (up 8.5%–9% YoY), with margin expansion to 48.6% in 4Q24.

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

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

• Completed the acquisition of JM Empilhadeiras, expanding the intralogistics segment and contributing to revenue and earnings.

Financial highlights

• Net rental revenue grew 16.6% in 2024, reaching R$1.4 billion, with long-term contracts rising from 33% to 44% of rental revenue.

• Operating cash flow was R$552.1 million in 2024, up 24.3% YoY.

• Record dividend payout of R$143.3 million in 2024, a 98% increase over 2023, with a 50% payout ratio and 6.36% yield.

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

• Free cash flow to firm was negative R$337.8 million in 2024 due to high investment.

Outlook and guidance

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

• CapEx for 2025 to be nearly half of 2024, with focus on heavy vehicles and intralogistics.

• No deceleration observed in early 2025; market remains dynamic.