Brazil · Delayed Price · Currency is BRL Localiza Rent a Car Earnings Call Transcripts
Fiscal Year 2025
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Delivered strong revenue and EBITDA growth in 2025, driven by higher rental rates, robust used car sales, and operational efficiencies. Focus for 2026 is on restoring ROIC spread, fleet rejuvenation, and moderate growth, with continued investments in technology and network expansion.
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Q3 2025 saw double-digit revenue growth, record used car sales, and strong margin expansion, with adjusted net income up 7.3% year-over-year. Operational efficiency, innovation, and disciplined capital management drove a 15.4% annualized ROIC, despite IPI tax impacts.
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Q2 2025 saw strong revenue and margin growth driven by price increases and cost efficiencies, with net revenue up 9.4% and EBITDA up 40.1% year-over-year. Strategic focus on higher-return segments, disciplined capital allocation, and integration synergies supported improved ROIC and financial ratios.
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Q1 2025 saw double-digit revenue and profit growth, driven by price adjustments, cost efficiency, and strong performance in Car Rental, Fleet Rental, and Seminovos. ROIC spread and margins improved, with continued focus on fleet rejuvenation and disciplined capital allocation.
Fiscal Year 2024
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Revenue grew 29% year-over-year to BRL 37.3 billion in 2024, with strong gains in all divisions and improved profitability. Strategic focus remains on fleet renewal, price discipline, and cost efficiency amid rising interest rates and tighter credit.
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Solid 3Q 2024 results with 32.3% revenue growth, strong margins, and robust cash generation. Positive trends in pricing, fleet renewal, and used car sales support outlook, while disciplined capital allocation and a rational competitive environment underpin continued value creation.
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Second quarter 2024 saw strong revenue growth but a net loss due to higher depreciation and impairment, as the company accelerated fleet rejuvenation and adjusted to market normalization. Guidance anticipates margin and ROIC spread normalization by late 2025, with continued expansion in used car sales and operational efficiency initiatives.