Mills Locação, Serviços e Logística (MILS3) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of R$433 million in 4Q24 and R$1.6 billion in 2024, up 18% and 14% year-over-year, reinforcing leadership in Brazil's equipment rental market.

• Adjusted EBITDA reached R$210.2 million in 4Q24 and R$760.1 million in 2024, growing 10% and 9% year-over-year, with margin expansion.

• Net income was R$76 million in 4Q24 and R$285 million in 2024, with margins of 17.5% and 18.1%.

• Advanced ESG agenda, earning B Corp certification and inclusion in major sustainability indices, and received multiple industry awards.

• Major acquisition of JM Empilhadeiras expanded portfolio and increased share of long-term contracts.

Financial highlights

• Net rental revenue reached R$398 million in Q4 2024 and R$1.4 billion for the year, growing 8% and 5% respectively.

• Adjusted operational cash flow was R$144 million in Q4 and R$552 million for the year, up over 21% year-over-year.

• Largest dividend payout in company history at R$143 million, a 98% increase over the previous year, with a 50% payout and 6.36% yield.

• Capex totaled R$994.5 million in 2024, with 91.6% allocated to rental assets.

• Free cash flow to firm was negative R$337.8 million in 2024 due to high investment.

Outlook and guidance

• Yield expected to remain flat in 2025, with no price adjustments planned due to macroeconomic conditions.

• CapEx for 2025 to be nearly half of 2024, focusing on heavy vehicles and intralogistics.

• Focus on disciplined capital allocation, cost efficiency, productivity, and expansion of long-term contracts.

• No deceleration observed in early 2025; focus remains on long-term contracts and productivity improvements.

• Strategy includes maximizing synergies, customer relationships, and advancing ESG initiatives.