Mills Locação, Serviços e Logística (MILS3) Q4 2025 earnings summary

Executive summary

• Achieved record net revenue of BRL 1,838.0 million in 2025, up 16.7% year-over-year, with strong growth in rental and diversification across segments.

• Adjusted EBITDA reached BRL 941.2 million, a 23.8% increase versus 2024, with margin expansion to 51.2%.

• Net income for the year was BRL 301.2 million, up 5.6% year-over-year, with cash net income rising 21.5% to BRL 502.4 million.

• Record dividend distribution of BRL 255.1 million announced, with an 85% payout ratio and 8% dividend yield.

• Maintained disciplined capital allocation, prepaying debt and distributing dividends, supporting both organic and inorganic growth.

Financial highlights

• Fourth quarter net revenue was BRL 492.7 million, up 13.9% year-over-year, marking a record quarterly revenue.

• Adjusted EBITDA for Q4 was BRL 253 million, up 20% year-over-year, with a margin above 51%.

• Full-year adjusted operating cash flow reached BRL 786 million, a 20% increase, with cash conversion at 87% of EBITDA.

• CapEx for the year was BRL 675.7 million, down 32% from 2024, with over 80% allocated to rental assets and BRL 180 million for the Nex Rental acquisition.

• Gross debt at year-end was BRL 1.7 billion, with a reduction of BRL 443 million after prepayment of the seventh debenture.

Outlook and guidance

• Focus remains on increasing recurring revenues, targeting resilient sectors, and expanding long-term contracts for 2026.

• CapEx in 2026 will prioritize fleet renovation and growth, with a 60% allocation to heavy equipment and 40% to intralogistics/forklifts.

• Strategic priorities include digitalization, operational efficiencies, and selective M&A.

• Expectation to maintain recurring margins at 50% and consistent results in formwork and shoring, supported by a robust pipeline.