Grupo Vamos (VAMO3) Q2 2025 earnings summary

Executive summary

• Achieved record used vehicle and asset sales, with net revenue up 72% year-over-year and 12% sequentially, reflecting strong asset liquidity and resilient leasing demand.

• Rental and leasing revenue grew above inflation, supported by diversified and resilient customer base across multiple sectors.

• Focused on contract extensions and profitability, reducing CapEx and working capital needs while improving returns.

• Maintained high liquidity, with cash and available credit lines covering 80% of gross debt maturing through 2027.

• Strategy emphasizes inventory reduction, higher fleet utilization, and disciplined asset management.

Financial highlights

• Net revenue for 2Q 2025 was R$1,411.7 million, up 16.9% year-over-year, driven by used vehicle sales and lease revenue growth.

• EBITDA increased 13.9% year-over-year to R$911.1 million, but EBIT and net income declined due to higher depreciation, interest rates, and inventory costs.

• Net income dropped 47.9% year-over-year to R$92.8 million, impacted by higher financial expenses and normalized depreciation.

• Adjusted net income reached R$93 million for the quarter.

• Lease services EBITDA margin remained above 86%.

Outlook and guidance

• 2025 guidance revised: EBITDA now R$3,500–3,900 million (was R$3,850–4,150 million); net profit R$300–450 million (was R$450–550 million); leverage target 3.1–3.4x.

• New asset growth projection reduced, contract extensions raised, Sempre Novo leases below initial estimates, and used vehicle sales projected at R$1.3–1.5 billion.

• Focus remains on reducing leverage, increasing fleet utilization, and prioritizing resilient sectors.

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