Mills Locação, Serviços e Logística (MILS3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$450.1 million in 2Q25, up 21.6% year-over-year, driven by rental growth, sustainable expansion, and disciplined capital allocation.

• Adjusted EBITDA was R$227.2 million in 2Q25, up 25.7% year-over-year, with a margin of 50.5%.

• Net income was R$87.3 million in 2Q25, up 23% year-over-year, with a 19.4% margin.

• Acquisition of Next Rental for R$180 million, adding 738 assets and expanding into mining, forestry, agribusiness, and new regions.

• Long-term contracts represented 50% of rental revenue, increasing predictability.

Financial highlights

• Adjusted operating cash flow reached R$114.3 million in 2Q25, up 31.2% year-over-year.

• Investments totaled R$162.9 million in 2Q25, down 64.9% year-over-year, with 93.3% allocated to rental assets.

• Cash net income for 2Q25 was R$151.9 million, with a margin of 33.7%.

• EBITDA margin improved to 50.5% in 2Q25; net margin was 19.4%.

• Distribution of R$48.9 million in Interest on Equity for 2Q25.

Outlook and guidance

• Margins expected to remain healthy, with ongoing focus on productivity, SG&A reduction, and operational excellence.

• CapEx for the second half to remain at similar levels, focused on heavy and Intra Logistics segments.

• Continued focus on long-term contracts, especially in Heavy Equipment and Intralogistics, to drive revenue predictability.

• Backlog and contract pipeline support strong performance into 2025 and 2026.

• Expansion in the Southern region and forestry sector through Next Rental acquisition.