Grupo Vamos (VAMO3) Q1 2025 earnings summary

Executive summary

• Achieved record consolidated net revenue of R$1,332.0 million in 1Q25, up 23.6% year-over-year, driven by strong leasing and used asset sales performance.

• Leasing segment revenue grew 25.4% to R$1,251.1 million, with net revenue from services up 14.6% and asset sales up 81.9%.

• Fleet utilization improved to 85%, with a 19.5% reduction in asset repossessions compared to 1Q24.

• Used vehicle sales surged 81.9% year-over-year to a record R$290.5 million, supported by digital tools and expanded sales network.

• Net income declined 45.6% year-over-year to R$107.8 million, impacted by higher financial expenses and tax rate.

Financial highlights

• Net revenue reached R$1,332.0 million (+23.6% year-over-year), driven by leasing and record used asset sales.

• EBITDA grew 10.1% to R$886.7 million, with leasing EBITDA margin at 89%.

• Net margin declined to 8.1% from 18.4% in 1Q24.

• Gross margin on used asset sales was 7.2%, below the 10% target due to accelerated sales and asset mix.

• Net debt increased 15.7% year-over-year to R$11.8 billion; leverage at 3.3x Net Debt/EBITDA.

Outlook and guidance

• 2025 guidance: EBITDA R$3,850–R$4,150 million; net profit R$450–R$550 million; net CAPEX R$2,000–R$2,200 million; leverage 3.0x–3.2x.

• Management expects continued improvement in fleet utilization and ROIC, with a positive trend for the remainder of 2025.

• Targeting fleet utilization rate of 90% by year-end.

• Focus on increasing occupancy, reducing inventories, and improving profitability and deleveraging.