Mills Locação, Serviços e Logística (MILS3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of R$419.5 million in 3Q24, up 21% year-over-year, driven by expansion in new rental products, cross-selling, and portfolio diversification.

• Adjusted EBITDA reached R$199 million with a margin of 47.4%, up 11.5% year-over-year.

• Net income was R$70.8 million, a 6.1% increase, with a net margin of 16.9%.

• Investments totaled R$173 million, with 92.9% allocated to rental assets, increasing production capacity and supporting strategic expansion.

• Maintained leadership in Latin America for access equipment rental, advanced ESG initiatives, and continued inclusion in the B3 IDIVERSA Index.

Financial highlights

• Net revenue grew 21% year-over-year to R$419.5 million in 3Q24; rental revenue up 19.7%.

• Adjusted EBITDA increased 11.5% year-over-year to R$199 million, with a 47.4% margin.

• Net income rose 6.1% year-over-year to R$70.8 million; net cash income was R$113.4 million.

• Operating cash flow was R$204.6 million, up 9.4% year-over-year.

• Free cash flow was negative R$8 million due to strong investments in rental assets.

Outlook and guidance

• Focus on organic and inorganic growth, margin recovery, and portfolio expansion, with optimism for margin stabilization as utilization rates improve.

• Continued commitment to ESG, including decarbonization and diversity.

• No significant changes expected in leverage, with net debt-to-EBITDA targeted to remain at 1.2x barring major M&A.