Grupo Vamos (VAMO3) Q1 2025 earnings summary

Executive summary

• Achieved record consolidated net revenue of R$1,332 million in 1Q25, up 23.6% year-over-year, driven by strong leasing and used asset sales performance.

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

• Fleet utilization rate improved to 85%, reflecting better contract deployment, extensions, and inventory reduction.

• Asset repossessions declined nearly 30% from 2024 average, indicating improved credit assessment and risk management.

• Raised R$1.9 billion in new debt at competitive rates, reinforcing liquidity and capital structure.

Financial highlights

• Net revenue reached R$1,332 million, up 23.6% year-over-year, driven by all segments, especially used vehicle sales.

• EBITDA grew 10.1% to R$886.7 million; EBIT was flat due to temporary margin contraction from depreciated idle assets.

• Net income was R$107.8 million, down 45.6% year-over-year due to higher financial expenses and tax rates.

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

• Net debt increased to R$11.8 billion, with leverage at 3.3x–3.4x Net Debt/EBITDA.

Outlook and guidance

• 2025 guidance: EBITDA R$3.85–4.15 billion, net income R$450–550 million, net capex R$2.0–2.2 billion, and leverage 3.0–3.2x.

• Reaffirmed BRL 5 billion in deployed CapEx for 2025, with 34% from used assets, reducing net CapEx needs.

• Management expects continued improvement in fleet utilization and ROIC, targeting 90% utilization by year-end.

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