Mills Locação, Serviços e Logística (MILS3) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 reached BRL 483 million, up 15% year-over-year, with year-to-date revenue at BRL 1.345 billion, up 17.7%, driven by balanced growth across business units and the Next Rental acquisition.

• 55% of rental revenue now comes from long-term contracts, enhancing revenue predictability and supporting sustainable growth.

• Heavy and intralogistic segments increased in relevance, now accounting for 35.5% of consolidated revenue, with strong performance in Formwork & Shoring.

• Acquisition of Next Rental in August added 738 assets, expanded fleet size by 13% year-over-year to 16,100 machines, and strengthened presence in resilient sectors.

• Strategy focused on operational efficiency, disciplined capital allocation, and segment diversification.

Financial highlights

• Adjusted EBITDA for Q3 2025 was BRL 254.6 million (53% margin), up 27.9% year-over-year, with 9M25 EBITDA at BRL 688.3 million (51.2% margin).

• Cash net income totaled BRL 117.9 million (24.4% margin) in Q3; year-to-date net income reached BRL 363.4 million (27% margin).

• Operating cash flow was BRL 224.7 million in Q3, up 9.9% year-over-year, with nearly 100% EBITDA-to-cash conversion.

• Gross debt at quarter-end was BRL 2.2 billion, with a robust cash position of BRL 913 million and net debt at BRL 1.2 billion.

• Distribution of BRL 42.5 million in interest on equity, representing a 63% payout of quarterly profit.

Outlook and guidance

• Management expects continued competitive pressure in light equipment, with no significant change in the scenario anticipated.

• Focus remains on long-term contracts, especially in Heavy and Intralogistics, and on sustainable growth and operational efficiency.

• Organic investments are planned for 2026, with a selective approach to capital allocation due to the interest rate environment.

• Infrastructure and shoring segments have a strong investment pipeline and backlog, justifying ongoing CapEx.

• ROIC for LTM ended September 2025 at 19.7%, with expectations for gradual return to historical levels as new investments mature.