Mills Locação, Serviços e Logística (MILS3) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 412.4 million in 1Q25, up 16.8% year-over-year, driven by rental revenue growth and operational excellence.

• Adjusted EBITDA rose 21.4% to BRL 206.5 million, with a margin of 50.1%, reflecting improved efficiency and cost control.

• Net income was BRL 67.9 million, with a net margin of 16.5%, and cash net income was BRL 93.6 million, with a 22.7% margin.

• Awarded the 2025 IAPA/YEP Sustainability Award, highlighting ESG commitment.

• Distributed BRL 13.7 million in interest on equity for 1Q25.

Financial highlights

• Rental net revenue increased 20.1% year-over-year to BRL 381.6 million, led by heavy vehicles and intralogistics segments.

• Adjusted operational cash flow was BRL 151 million, up 29.9% year-over-year, with EBITDA-to-cash conversion at 73%.

• CapEx for the quarter was BRL 171.2 million, down 9.1% year-over-year, with 95.3% allocated to rental asset acquisitions.

• Leverage (Net Debt/Adjusted EBITDA) stood at 1.4x, with gross debt of BRL 1.8 billion and average cost of CDI +1.44% p.a.

• Free cash flow to firm (adjusted) was BRL 48.8 million, up 55.1% year-over-year.

Outlook and guidance

• CapEx for 2025 expected to be lower than 2024, with investments concentrated in 1Q and 2Q.

• No change in 2025 outlook; disciplined capital allocation continues amid challenging macroeconomic conditions and rising interest rates.

• Management remains confident in growth prospects, focusing on sustainable value creation and operational excellence.

• Strong infrastructure project pipeline and long-term contracts support positive medium- and long-term demand outlook.