Mills Locação, Serviços e Logística (MILS3) Q4 2025 earnings summary

Executive summary

• Achieved record net revenue of BRL 1.84 billion in 2025, up 16.7% year-over-year, with strong growth in Rental and Formwork & Shoring segments and diversification across business lines.

• Adjusted EBITDA reached BRL 941.2 million, up 23.8% year-over-year, with margin expansion to 51.2%.

• Net income totaled BRL 301.3 million, a 5.6% increase, with cash net income rising 21.5% to BRL 502.4 million.

• Record dividend and interest on equity distribution of BRL 255.1 million, with an 85% payout ratio and 8% dividend yield.

• Major acquisitions included Next Rental in 2025 and JM Empilhadeiras in 2024, expanding equipment portfolio and geographic reach.

Financial highlights

• Fourth quarter net revenue was BRL 492.7 million, up 13.9% year-over-year, with gross revenue rising 14.3%.

• Adjusted EBITDA for Q4 was BRL 252.9 million, up 20.3% year-over-year, with a margin above 51%.

• Full-year adjusted operating cash flow reached BRL 786 million, up 20%, with cash conversion at 87% of EBITDA.

• CapEx for 2025 was BRL 675.7 million, down 32.1% from 2024, with 83% allocated to rental assets and BRL 180 million for the Next Rental acquisition.

• Leverage reduced to 1.3x Net Debt/EBITDA, with average debt cost down to CDI + 1.08% p.a.

Outlook and guidance

• Focus for 2026 on disciplined execution, operational efficiencies, and selective M&A, with continued investment in fleet expansion and digitalization.

• Strategic priorities include expanding long-term contracts, targeting resilient sectors, and maintaining recurring margins at 50%.

• Preparing for regulatory changes from Brazil’s tax reform, with no immediate impact expected on 2025 results.

• Climate transition plans and decarbonization targets are being implemented, aligned to TCFD and SBTi standards.