Mills Locação, Serviços e Logística (MILS3) Q1 2026 earnings summary

Executive summary

• Achieved record net income and net revenue for Q1 2026, with net income up 190.1% year-over-year to BRL 197.0 million, driven by operational efficiency, non-recurring tax credits, and robust cash generation despite seasonal and macroeconomic headwinds.

• Expanded long-term rental contracts, increasing revenue predictability and recurrence, especially in heavy equipment and intralogistics units.

• Maintained a strong capital structure with leverage at 1.1x Net Debt/Adjusted EBITDA, supporting financial flexibility and growth.

• Advanced ESG agenda, including first-time inclusion in B3's Corporate Sustainability Index and progress in decarbonization and social initiatives.

Financial highlights

• Net revenue reached BRL 461.2 million, up 11.8% year-over-year, with adjusted EBITDA of BRL 235.1 million, up 13.8% and margin expanding to 51.0%.

• Net income totaled BRL 197.0 million, including a significant positive impact from non-recurring tax credits; recurring net income would have been BRL 65.5 million.

• Adjusted operating cash flow was BRL 220.8 million, up 46.3% year-over-year, with EBITDA to cash conversion at 82.5%.

• CapEx was BRL 96.7 million, down 43.6% year-over-year, with 89% allocated to fleet expansion and renewal.

Outlook and guidance

• Continued focus on organic and inorganic growth opportunities, with a preference for markets offering greater revenue predictability and expansion of long-term contracts.

• Expectation to resume postponed investments in the next quarter as equipment deliveries and construction projects normalize.

• ROIC expected to gradually converge toward historical levels as recent investments mature.