Localiza Rent A Car Sa · BMFBOVESPA:RENT3
Localiza Rent A Car Sa — Q2 2025 Earnings Presentation
31 slides from Localiza Rent A Car Sa's earnings presentation, Aug 12, 2025
Slide 1: Earnings Release
Earnings Release
Slide 2: Quarterly Overview
Quarterly Overview: In the second quarter of 2025, we achieved solid results, aligned with our priority of rebuilding the ROIC spread. We made consistent progress in executing our operational fronts, reinforcing the resilience of our business model even in a challenging macroeconomic environment. We
Slide 3: IPI Reduction
IPI Reduction: At the end of 2Q25, a new IPI reduction for new cars was announced, regulated by Decree No. 12,549, published on July 10, 2025. The measure is part of the National Green Mobility and Innovation Program (Mover), launched in 2023, and is aligned with decarbonization and sustainability g
Slide 4: Car Rental Division
In 2Q25, net revenue from the Car Rental division reached R$2,461 million, an 8.3% increase compared to 2Q24. We continued our price recovery and productivity management process. In the quarter, the average daily rate reached R$148.9, an increase of 10.6% year-on-year, with the utilization rate rema
Slide 5: Fleet Rental Division
In 2Q25, the Fleet Rental division reported net revenue of R$2,248 million, 10.2% higher than in the same period last year, driven by the increase in the average daily rental rate and the stability in the number of daily rentals. In line with our strategic priorities for the year and with the goal o
Slide 6: Seminovos
In 2Q25, net revenue from Seminovos reached R$5,141 million, a 9.1% increase compared to 2Q24. Car sales volume showed a slight drop of -0.6%, with an increase in the average selling price. On June 26, the press reported a reduction in the IPI (Tax on Industrialized Products) for entry-level cars, i
Slide 7: Car Rental Growth and Network
The chart above shows the growth of the Car Rental division. We ended the quarter with 691 locations, 604 in Brazil, 16 in Mexico, and 71 in five other South American countries. At the end of June, the car sales network consisted of 244 stores in 126 cities. In 2H25, we will continue the process of
Slide 8: Fleet Renewal and Car Purchases
After reducing our purchase volume in 1Q25 to adjust our fleet to post-peak season demand, we resumed purchasing cars to renew our fleet in 2Q25. We ended the quarter with the addition of 5,136 cars and a net investment of R$1,521 million in Brazil. In the quarter, 74,037 cars were purchased, 49,943
Slide 9: Fleet Renewal Investment per Car
In the Car Rental division, the average purchase price was R$82.3 thousand and the average sales price reached R$72.7 thousand in 2Q25, resulting in a fleet renewal investment of R$9.6 thousand per car. The gradual advancement of fleet rejuvenation and the reduction in average kilometer per car sold
Slide 10: Fleet Size
The Company ended the quarter with a fleet of 632,957 cars, stable compared to 2Q24 and in line with the objective of prioritizing price recovery and increasing fleet productivity. 10
Slide 11: Consolidated Net Revenue
The Company continues to report net revenue growth, with a 9.4% increase in 2Q25 compared to the same period last year, totaling R$9,900 million. Rental revenue grew 9.3%, while revenue from Seminovos, the Company's efficiency business, totaled R$5,166 million in the quarter (including Mexico), a 9.
Slide 12: Consolidated EBITDA
In the quarter, consolidated EBITDA totaled R$3,293 million, a 40.1% increase compared to the same period last year. In 2Q24, EBITDA was impacted by the effects of the floods in Rio Grande do Sul, in addition to the Adjustment to Recoverable Value of cars, which totaled R$386.0 million. Excluding th
Slide 13: Fleet Rental Margins and Costs
In Fleet Rental, the margin was 71.0%, an increase of 12.8p.p. compared to 2Q24. The margin excluding Trucks and other Initiatives reached 73.4%. In 2Q24, the Fleet Rental margin was impacted by the recognition of R$113 million related to the adjustment to the recoverable value and adjustments assoc
Slide 14: Depreciation and Car Prices
Depreciation is calculated using the straight-line method, considering the difference between the car's purchase price and the estimated selling price at the end of its useful life, net of the estimated costs and expenses for sale. The estimated selling price is recurrently reassessed so that the bo
Slide 15: EBIT
In 2Q25, EBIT was R$2,020 million. The annual comparison is impacted by the recognition of additional depreciation and impairment in 2Q24 of approximately R$1.7 billion. For the first half of the year, EBIT totaled R$4,084 million. EBIT Margin includes the results of Seminovos and is calculated base
Slide 16: Adjusted Net Income
In 2Q25, we reported adjusted net income of R$768 million. The annual comparison is impacted by the recognition of additional depreciation and adjustment to the recoverable value in 2Q24. For the first half of the year, adjusted net income totaled R$1,611 million. Due to the incorporation of Locamer
Slide 17: Cash Generation and Capex
In 1H25, the Company reduced its fleet after the peak season and the strong car purchases made at the end of 2024. The cash generated from rental activities (R$5,301 million) and the positive net capex (R$ 502 million) were partially consumed by the reduction in accounts payable to automakers. 17
Slide 18: Net Debt and Cash
As of June 30, 2025, the Company's net debt totaled R$31,348 million, an increase of 4% when compared to the debt 12/31/2024. The Company ended the quarter with R$9,483 million in cash, sufficient to cover short-term debt, as well as ‘accounts payable’ to automakers, and continues to advance in acti
Slide 19: Swap Contracts
As of June 30, 2025, the Company had R$20.4 billion in swap contracts, with an average rate of 11.5%, with the objective of protecting the cash flows of Fleet Rental from variations in interest rates. Approximately 1/3 of these swap contracts are renewed annually, following the maturities of the Fle
Slide 20: ROIC and Leverage Ratios
In the annual comparison, the net debt/fleet value and net debt/EBITDA LTM ratios showed significant improvement, due to the progress in the price recomposition process and the efficiency agenda. In 1H25, the annualized ROIC was 13.7%. The 4.1p.p. spread over the cost of debt reflects a 2.1p.p. incr
Slide 21: Interest on Capital Approved
In the quarter, the Board of Directors approved the payment R$533.8 million in Interest on Capital, which will be made on August 19, 2025, based on the shareholding position as of June 27, 2025. Interest on capital approved in 2025: Reference Approval Shareholding Payment Gross amount Gross amount p
Slide 22: Car Rental and Franchising Results
CAR RENTAL RESULTS AND FRANCHISING 2021 2022 2023 2024 Var. 1H24 1H25 Var. 2Q24 2Q25 Var. Car rental and franchising gross revenues, net of discounts and cancellations 4,851.3 7,211.5 9,118.6 10,652.1 16.8% 5,114.2 5,551.0 8.5% 2,515.0 2,718.5 8.1% Taxes on revenues (455.9) (701.3) (863.1) (1,005.6)
Slide 23: Car Rental Results - Mexico
CAR RENTAL RESULTS - MEXICO 2023 2024 Var. 1H24 1H25 Var. 2Q24 2Q25 Var. Car rental and Seminovos - net revenues 10.8 107.0 890.7% 39.9 95.7 139.8% 24.3 49.3 102.9% Direct costs - Car Rental and Car Sales (23.4) (136.2) 482.1% (64.1) (107.5) 67.7% (39.2) (53.7) 37.0% Gross profit (12.6) (29.2) 131.7
Slide 24: Fleet Rental Results
FLEET RENTAL RESULTS 2021 2022 2023 2024 Var. 1H24 1H25 Var. 2Q24 2Q25 Var. Fleet rental gross revenues, net of discounts and cancellations 1,325.2 3,567.7 7,367.4 9,213.5 25.1% 4,429.9 4,948.3 11.7% 2,250.9 2,480.9 10.2% Taxes on revenues (127.3) (343.0) (690.2) (860.0) 24.6% (413.6) (461.6) 11.6%
Slide 25: Consolidated Results
CONSOLIDATED RESULTS 2021 2022 2023 2024 Var. 1H24 1H25 Var. 2Q24 2Q25 Var. Car rental and franchising gross revenues, net of discounts and cancellations 4,851.3 7,211.5 9,129.4 10,734.1 17.6% 5,146.6 5,603.3 8.9% 2,531.8 2,743.5 8.4% Fleet Rental gross revenues, net of discounts and cancellations 1
Slide 26: Selected Operating Data
SELECTED OPERATING DATA 2021 2022 2023 2024 Var. 1H24 1H25 Var. 2Q24 2Q25 Var. Average operating fleet: Car Rental - Brazil (**) 195,242 246,922 285,103 293,700 3.0% 295,227 291,328 -1.3% 288,932 285,626 -1.1% Fleet Rental 61,962 142,703 258,334 288,783 11.8% 288,185 283,334 -1.7% 288,304 281,483 -2
Slide 27: Assets
ASSETS 2021 2022 2023 2024 1H25 CURRENT ASSETS: Cash and cash equivalents 444.1 1,505.6 2,000.9 3,568.6 1,953.0 Financial assets 4,565.4 4,053.8 8,321.3 7,856.9 6,296.3 Trade accounts receivable 1,310.4 2,480.2 3,681.6 4,033.7 3,717.5 Derivative financial instruments - swap 89.6 283.0 87.7 572.0 218
Slide 28: Statement of Income
STATEMENT OF INCOME 2021 2022 2023 2024 1H25 Total net revenues 10,901.3 17,783.4 28,902.6 37,271.6 20,039.3 COSTS AND EXPENSES: Direct costs (5,798.0) (9,173.2) (16,157.4) (22,547.3) (11,870.9) Selling, general, administrative and other expenses (1,405.8) (2,021.1) (2,222.3) (2,809.6) (1,549.3) Car
Slide 29: Consolidated Cash Flow
CONSOLIDATED CASH FLOW 2021 2022 2023 2024 1H25 CASH FLOWS FROM OPERATING ACTIVITIES: Net income 2,043.7 1,841.2 1,803.1 1,813.3 673.9 Adjustments to reconcile net income and cash and cash equivalents provided by operating activities: Depreciation and amortization 473.5 2,063.6 4,624.3 6,109.5 2,534
Slide 30: Definitions
• Adjustment to present value: Adjustment do present value of the financial investment contracted in the business combination of Companhia de Locação das Américas. • Adjustment to recoverable value: Adjustment to the recoverable value of assets based on the review of estimates of the realizable sell
Slide 31: Data
Data: Tuesday, August 12, 2025. English (with simultaneous translation into Portuguese) 11am (BRT) | 10am (EDT) | 3pm (BST) Registration link: Here Replay available at ri.localiza.com after the event. To access the results, please visit Results Center. For further investor relations information, ple