Grupo Vamos (VAMO3) Q2 2025 earnings summary

Executive summary

• Achieved record net revenue, EBITDA, and used asset sales in 2Q25, with net revenue up 16.9% year-over-year, driven by resilient leasing demand, contract extensions, and asset liquidity, despite high interest rates and macroeconomic headwinds.

• Gross rental revenue and leasing fleet grew, supported by diversified customer base and above-inflation revenue growth, but repossessions and early contract terminations increased due to stricter credit approval and sector-specific stress.

• Focused on contract extensions, profitability, and disciplined asset management, reducing CapEx and working capital needs while maintaining high liquidity, with cash and credit lines covering 80% of debt maturing through 2027.

• Strategy emphasizes inventory reduction, higher occupancy, and selective asset purchases, with a shift toward resilient sectors and digital sales channels.

• Completed the spin-off of Vamos Linha Amarela in late 2024, focusing operations on truck, machinery, and equipment leasing.

Financial highlights

• Net revenue for 2Q25 was R$1.41 billion, up 16.9% year-over-year, and H1 2025 net revenue reached R$2.74 billion, up 20% year-over-year, driven by leasing and used asset sales.

• EBITDA for H1 2025 was R$1.80 billion, with 2Q25 EBITDA at R$911.1 million, up 13.9% year-over-year; adjusted EBITDA margin declined to 63.5%.

• Net income for H1 2025 was R$200.6 million, down from R$376.3 million in H1 2024; 2Q25 net income dropped 47.9% year-over-year to R$92.8 million, impacted by higher depreciation and financial expenses.

• Lease services EBITDA margin remained above 86%, but EBIT and net income margins were pressured by higher inventory and finance costs.

• Used asset sales revenue hit a record, up 71.9% year-over-year, with trucks achieving a 13.6% gross margin.

Outlook and guidance

• 2025 guidance revised: capex now R$4.1–4.7 billion, EBITDA R$3,500–3,900 million, net profit R$300–450 million, and leverage target 3.1–3.4x; focus on contract extensions, selective asset purchases, and improving utilization.

• Sempre Novo leases and new asset growth projections reduced, while contract extensions and used vehicle sales targets increased.

• Utilization rate target of 90% may not be reached in 2025 but expected in 2026.

• Management cautions that projections are subject to risks and may not materialize as expected.