Ladies and gentlemen, welcome to the [audio distortion] Vamos Conference Call to discuss the results for the second quarter 2025. Today with us at this conference call are Mr. Gustavo Couto, Chief Executive Officer of Vamos, and José Cezário, Chief Financial Investor Relations Officer. This conference call is being recorded and the replay will be available on the company's website or at grupovamos.com.br. The presentation is already available for download in both Portuguese and English. We would like to inform you that all participants will be in listen-only mode during the company's presentation. We'll then start the Q&A session with further instructions that will be provided.
Before moving on, we would like to let you know that any statements that may be made during this conference call regarding the company's business outlook, projections, and operational and financial goals represent the beliefs and assumptions of Vamos management and are based on information currently available to the company. Forward-looking statements are not guarantees of performance, they involve risks, uncertainties, and assumptions as they relate to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry trends, and other operating factors may affect the company's future results and lead to results that will be materially different from the forward-looking statements. I will now hand over to Mr. Gustavo Couto that will begin the presentation. Mr. Couto, the floor is yours.
Good morning, everyone. Thanks for joining our 2Q 2025 Earnings Conference Call. I will begin with the highlights on page three. We reached a new record for used vehicle sales, with strong net revenue growth of 72% compared to 2Q 2024, an increase of 12% compared to 1Q 2025. Once again, proving the quality and liquidity of our assets, as well as the capability of our team. Even with all the growth, Vamos accounts for only 4.5% of the market for sales in used trucks up to 10 years old, and even in a smaller fraction of the total market. We also posted record net revenue from services, with rental growing above inflation, a result of resilient demand for lease of all types of assets in various sectors of the economy.
New customer wins, contract price adjustments, and the implementation of the strong volume signed in 1Q 2025, and parts of the volume signed in 2Q 2025. Added to this is our strategy to contract extensions with fair price adjustments, contributing to rental profitability, reducing the need for net CapEx, and lowering working capital requirements. By June, we've reached an accumulated amount of almost BRL 508 million in contract extensions, equivalent to 49.2% of all contracts that matured so far, ahead of our guidance. This focus on profitability in all contracts that are sustainable has allowed us to achieve an internal rate of return of 0.9 percentage points and a yield expansion of 0.4 percentage points. This proves our ability to price contracts effectively and our purchase power for new assets.
Finally, I'd like to highlight that our cash position remains profitable, and considering the available credit lines, covers 80% of our gross debt until 2027. Now, I'll hand it over to Cezário to continue the presentation. I'll be back later.
Thanks, Couto. Good morning, everyone. I'm starting with slide five, talking about the lease segment results. Considering all contracted CapEx, we reached nearly BRL 1 billion in new contracts, with a significant increase in IRR to 21.7% and yield to 9.1%. This reinforces our ability to price correctly our competitive advantages when negotiating the purchase of assets and the company's focus on prioritizing leasing of assets already in inventory. Demand for new vehicle leases remains relatively strong, even in the current environment of high interest rates and asset prices. Contract extensions remain above guidance.
28% of contracted CapEx in 2Q 2025 contributes to the strategy of growing without reducing the need for net CapEx and working capital while meeting the needs of our customers. It's important to highlight that these contracts undergo price adjustments at the time of extension, reflecting case-by-case asset revaluation and ensuring sustainable profitability for our business. Since renewable products, we continue working on maturing the contract value for this product, which is a major opportunity for Vamos and our customers. The slower than planned pace reflects the learning curve, the time needed for asset preparation, and longer negotiation timelines with customers. On the other hand, it reflects a more limited market for the assets currently in inventory compared to the resilient demand for brand assets. Even so, since the launch of Sempre Novo, the company has managed to lease approximately BRL 605 million with an average IRR of 22%.
Our commercial strategy continues to seek balance between leases of our inventory, growing the Sempre Novo businesses, and securing new businesses with financially solid customers at good profitability levels. Next slide, we bring the volume of CapEx deployed this quarter, BRL 931 million, a 19.7% drop compared to 2Q 2024, explained by the lower volume of contracted CapEx. However, I highlight that this drop was smaller than the drop in contracted CapEx, mainly due to the partial deployment of a large volume contracted in 1Q 2025. The amount of assets to be deployed in the second half of 2025 reflects consistency in the volume of contracts for new assets, as well as the improvements needed to grow contracts involving Sempre Novo. In the lower part of the slide, we see that our backlog of contracted assets to be deployed continues to grow, supported by new contracts signed.
Of the BRL 984 million in CapEx to be deployed, 50% is already in our inventory. On the bottom right chart, revenue backlog totals BRL 13.2 million this quarter, a 5% reduction versus March 2025, due to shorter average contract terms and the suspensions of BRL 659 million in revenue related to assets repossessed or returned. In slide seven, we talk about assets repossessions and returns in 2Q 2025 in more detail. The more challenging business environment, as already mentioned, has negatively affected some clients, especially in certain sectors, leading to new cases of early asset returns, either due to default or the need to adjust lease scopes in some contracts. In this context, in order to protect our results from potential increases in delinquency levels, we have maintained diligence and agility in asset repossession, resulting in volumes of returns and repossessions above what we consider normal for our business.
Looking at the first chart, we see that although repossessions remain at high levels, they have shown double-digit declines in both year-over-year comparisons, directly resulting from restricted credit approval for new clients and greater sector diversification the company has been focusing on. However, repossessions in 2Q increased compared to 1Q 2025 due to the company's decision to accelerate repossessions from grain transportation clients, which accounted for 30% of the repossession volume in 2Q 2025, as shown on the top right chart. As a result, we reduced our revenue exposure to this sector to just 1.38% in June 2025, compared to 2.67% in December 2024 and about 10% at its peak in 2021. The grain transportation segment, together with rural producers, other agribusiness segments, and general cargo transportation, accounted for a high concentration of 72% of all assets repossessed by the company since 2023.
We also emphasize that the repossession volume in 2Q 2025 came mainly from small and medium-sized customers, with no repossession from any of the company's 40 largest customers. Finally, I'd like to highlight that the ratio of allowance for doubtful accounts to net revenue from grant-from-lease services has remained relatively stable since 1Q 2024, after excluding the non-recurring effects of the extraordinary write-off and is expected to follow a downward trend in the coming quarters, both because of a stricter, more selective credit analysis and the company's agility to stopping revenue recognition and repossessing assets from delinquent clients to protect our assets and maintain the profitability of our operations. On page eight, our lease fees grew both compared to 2Q 2024 and 1Q 2025, with new contracts signed.
However, the utilization rate dropped by one percentage point compared to 1Q 2025 due to higher rental inventory, as we will now explain using the chart in the lower part of the slide. As you can see, we remain fully committed to reducing our inventory, and we are doing everything possible in this direction. We are purchasing new assets only on demand, reducing new asset inventory by 9.3% in just three months, and we deploy more than purchased. In addition, the BRL 771 million in new asset inventory, BRL 404 million, or 57%, is already being deployed into signed contracts. On the sales side, we've recorded an all-time volume of used vehicle sales, 38% above the value of assets retired due to contract terminations, and we expect this to continue as we succeed in contract extensions while also seeking to increase our used vehicle sales volumes.
Despite the deliveries, the higher rate of asset repossession this quarter caused the asset inventory to increase more than the lease fee, which in turn reduced our utilization rate compared to what we expected for this time of the year. If not for the BRL 365 million repossessions, we would have reduced inventory by BRL 137 million, directly improving its utilization. I also note that the balance of assets available for sale or lease in June 2025 was BRL 2.7 billion net of depreciation. We reassure our commitment to improving utilization by year-end as asset sales grow and new contracts are deployed. On slide nine, we show total fleet growth of 4.3%, with growth in all asset segments. We also take this opportunity to show how diversified the company's revenue is today.
We operate in more than 16 sectors of the economy, which allows us to mitigate potential revenue losses from repossessions in some sectors, with demand in others which tend to offset the effect. In this quarter, we highlight increased share in the logistics, urban cleaning, commerce, e-commerce, electric power, agri-business excluding grains, engineering, services, industrial, and fuel transportation segments. Moving to slide ten, I want to highlight the diversification of the company's assets and clients, supported by our strategy of offering solutions based on customer needs, making Vamos much more than just a truck lease company. In this regard, I'd like to point out that Vamos is a leader in the forklift lease segment, with 7,000 assets leased and approximately BRL 1 billion in asset value.
The segment accounts for 12% of our lease revenue, with appropriate profitability, low delinquency, a portfolio of more than 245 customers with high quality, and long-term contracts, generally over five years, and extension potential of up to ten years. On page 11, we discuss the lease segment results. Net revenue from services grew 8.7% in the quarter compared to 2Q 2024, mainly reflecting incremental revenue from deployments during the period, more than offsetting revenue declines from repossessions and the commercial challenges faced. Lease services EBITDA totaled BRL 862.7 million, margin above 86%. It could have been better if it were not for the revenue loss from repossessed assets that are not generating lease revenue, combined with additional expenses we are incurring to maintain and prepare used assets for sale or lease.
The company also recorded a non-recurring provision of BRL 14.8 million related to adjustment to be payable provision for acquisitions, which are treated as non-recurring and excluded from the analysis for better comparability. Depreciation remains under control at adequate levels to reflect the current used vehicle price environment. The increases in annualized depreciation per vehicle, as well as the implied depreciation rates in this chart, simply reflect the natural normalization process for truck depreciation rates. As the company retires and sells assets with lower depreciation rates, resulting from the significant appreciation of the assets since 2020, it buys new assets with depreciation rates more aligned with expected market prices. Machines and equipment continue to have a more linear depreciation, with rates between 9% - 10%.
EBIT margin in services we see a contraction due to the carrying idle fixed assets, mainly from repossessions, which continue to be depreciated without the offsetting lease revenue. Now, in slide 12, I'd like to talk about the highlights in used vehicle sales. Before discussing the quarterly results achieved this quarter, I would like to give you some context on the truck and road equipment sales in Brazil. According to Fenabrave, the first half of 2025 showed a 1.2% increase in new truck sales. However, the projection for the year has been revised downwards to a 5% drop, showing a weaker second half. ANFIR reported a nearly 20% decline in the sales of new trailers and semi-trailers, with dump and grain trailers for grain transportation falling 40% year-to-date compared to the same period of 2024.
Other types of equipment, dolly, sugarcane trailers, and leg trailers also saw significant declines compared to 2024. On the other hand, we look at the top right chart. We see that both new and used truck prices have remained stable even after the strong appreciation from 2019 to 2024, which gives us confidence in our depreciation rate. On the bottom left chart, we show the increase in sales volume in terms of the number of assets, both for trucks and machinery and equipment. In the chart on the right, we analyze Vamos trucks and bus sales versus the used asset market of up to 10 years old based on Fenabrave's historical data. We see that even with Vamos' strong sales volumes, the market niche is much larger, with our estimated market share at only 4.5%.
We also note that the up to 10 years old market has been gaining share within total used sales, which gives us even more comfort to continue growing leases without having to increase our depreciation rates. Moving to the next slide, we bring our financial results for used vehicles with record sales revenue of BRL 324.3 million this quarter, up 72% from the same quarter last year. Gross margin on asset sales was 7.5% for the quarter, maintaining a healthy profitability end to 2Q 2025, supported by healthy prices and a sale mix with greater exposure to trucks, which had a margin of 13.6%. The gross margin of -2.6% for other asset sales reflects the company's efforts to provide greater liquidity to assets, most with long inventory aging at a time of more restricted sales for assets in 2025.
The company's asset inventory available for sale was BRL 659 million in [June 30] 2025. In addition to this, the company had BRL 1.4 billion in residual value of used assets available for lease or sale, as indicated on the previous slide when we talked about fleet and utilization rates. Also, I'd like to mention that we continue to look for new locations for used vehicle stores and seek partnerships to increase our commercial reach in the segment. This year, we already opened a new store in Itajaí, Santa Catarina, and a new store in Pavuna, Rio de Janeiro. With this, we'll have a total of 21 stores in addition to 87 30-part points in different regions of Brazil.
Now, we are talking about the company's consolidated results and the quarterly evolution of the main indicators: net revenue totaled BRL 1.4 billion in 2Q , up 16.9% versus the same quarter last year, driven by strong contributions from the used vehicles business and above-inflation growth in lease revenue. The drop in consolidated EBITDA margin reflects the higher share of used vehicles in the revenue mix, as well as the annual margin reductions in each segment. EBITDA for the quarter fell 9% compared to the same period last year, mainly due to higher depreciation, explained both by fleet growth and by the normalization of the depreciation rate, also impacted by carrying idle asset inventory, as already explained.
Net income of BRL 83 million in the quarter mainly reflects, in addition to what I previously mentioned: higher depreciation, lower revenue from repossessed assets not yet sold or leased, the increase in net financial expenses, driven both by the higher base interest rate and the larger net debt balance. On slide 16, to better illustrate the effects on our results leading to net income, we show the main movements explaining the variations. As we can see, carrying idle fixed asset inventory has two important impacts on net income: first, the depreciation without the offsetting lease revenues, and second, the financial cost of the debt issued by the company to purchase non-revenue generating assets.
Added to this, we have a 4.2% increase in net debt, mainly due to fleet growth and the significant rapid increase in the base interest rate, nearly up 40% in the past 12 months, leading to adjusted net income to BRL 93 million for the quarter. On the next slide, we show the evolution of our return on invested capital and return on equity over the last 12 months. As mentioned earlier, the rate is temporarily affected by invested assets that are not generating revenue. On the right side of the slide, if we normalize the effect, considering a 91% utilization rate excluding used vehicles inventory from the denominator, and a 70% EBITDA margin, normalized rate should be around 17.4%.
This is not a projection since we are looking backward, but it naturally reinforces our focus on optimizing the company's capital employed through initiatives to reduce idle asset inventory, either by selling these assets or leasing them through the Sempre Novo product. Regarding return on equity, the main effect comes from the reduction in net income, as mentioned. Finally, moving to slide 18, we talk about the main financial indicators and leverage for the quarter. Net debt grew 4.2% compared to 1Q 2025, mainly reflecting the investments made by the company, as shown in the net debt walk on the right side of the slide. We close the quarter with a leverage of 3.4x net debt to EBITDA for covenant purposes.
If it weren't for the payment of dividends in the form of interest on equity, our net debt would have increased by only 2% when comparing June 30 to March 31, 2025, meaning that the lease cash generation plus asset sales nearly matched the amount we paid in interest and invested in new assets. At the end of June, we had approximately BRL 4.1 billion in cash and financial investments, which together with available credit lines, totaled BRL 4.4 billion, coverage equivalent to 80% of the gross debt maturing and payable through December 2027.
If we look at the ratio of net debt plus accounts payable to suppliers and receivable securitization to fleet value, we ended 2Q 2025 at 1.3 x, a conservative measure in our view since it does not take into account the market value of our assets, which currently generate 7% margins on sales, nor the balance of the receivables, which would make this ratio even lower. Now, I will hand it back to Couto.
Thanks, Cezário. Now, we'll move on to slide 19. You may recall that on November 12 last year, we disclosed the material facts projecting our deployed CapEx for 2025 at BRL 5 billion, comprising BRL 3.3 billion in new assets plus BRL 700 million in contract extensions and an additional BRL 1 billion in Sempre Novo deployments, the new product we launched in 2024.
Considering our estimates for used vehicle sales of BRL 1.2 billion, this would result in approximately BRL 2.1 billion in net CapEx. Later, together with the release of 1Q 2025 results in April, we also provided financial guidance based on the operational guidance we had given in November last year, getting to a net income range of BRL 450 million- BRL 550 million. This helped investors understand what the company would look like after the spin-off. Recognizing that the business environment and macroeconomic conditions have become more challenging, and to better reflect the results achieved through 2Q 2025, along with the challenges and opportunities we expect for the remainder of the year, we believe it's necessary to adjust the 2025 guidance. Note that we have revised the projection for growth through new assets to BRL 3 billion.
We also adjusted the volume of contract extensions with the same assets and price adjustments to a range between BRL 800 million - BRL 900 million. The volume of Sempre Novo leases should come in below our initial estimates from late last year. However, used vehicle sales have reached record levels every month this year, leading us to a new projection of BRL 1.3 billion- BRL 1.5 billion by year-end. Now, let's move to the last slide where I share my closing remarks. We will prioritize reducing inventory and increasing fleet utilization. We'll continue working to reduce the new asset inventory, which was already much more normalized, and reduce used vehicles inventory, either through rentals or leases. Leases or sales, I'm sorry. In addition, we work to reduce the company's leverage, moderating interest rates, growth, efficiency in inventory turnover, and asset sales.
Our future contracted revenue remains resilient at BRL 13 billion, with potential to grow as we continue leasing assets we have already invested. The record volume of used vehicle sales is a result of the liquidity of our assets, extension of our commercial reach, and use of digital channels. We have broadened our channels, and our work has proven effective. Contract management and business risk mitigation give us greater agility in repossessing assets, as well as selectivity in credit analysis. Extending contracts with price adjustments is part of our strategy to improve the profitability of vested assets, and it's an excellent alternative for our customers to avoid escalating costs. The new contracts proposed by the company prove our ability to price fairly and follow the current economic environment.
The commercial area will focus on resilient sectors of our economy, such as the internal logistics, with exercising proper credit management for projects and customers. We are now open for your questions. Thank you very much.
We'll now start the Q&A session for investors and analysts. If you want to ask a question, just click on raise hand. If your question is answered, you can leave the queue by clicking on lower hand. If you want to submit a question in writing, please enter your question in the Q&A field, followed by your name and company. Our first question comes from André Ferreira from Bradesco BBA. Mr. Ferreira?
Good morning, everyone. Thanks for taking my questions. I have two questions. First, to understand your guidance, talking about lower numbers, the hedge of BRL 300 million - BRL 400 million is lower than the range of BRL 100 million.
In the first half, you already delivered BRL 200 million. I'd like to know what you consider the highest risk. Is it repossession, accommodation of sales for the gross income of third and fourth quarters, leading the second half to take the final number to the lowest point of our guidance? Also, new repossessions of the quarter, if we exclude grain transportation, we would still have BRL 250 million higher than what you had in the first quarter. My question is if there was a decision to accelerate risk possession as a whole, not only in grain transportation, and how much you expect for repossessions in the third and fourth quarter? Thank you.
André , this is Couto speaking. Thanks for asking your questions. About the guidance, what we see clearly is, first, we do not have a prospect.
We are not expecting for the lower part of the range, a possibility of a lower interest rate, which would lead to the maintenance of the current cost of debt. This is an important aspect. Another relevant point is for us to get to the peak of the range. We would have a range of repossessions above what we expected. The pace of repossessions, and I'm going to connect to your second question, leads us to some measures. First, a closer management, more diligent, and agile to any signs in specific sectors of the company. We indeed see that we'll probably have a level of repossessions above expected in some sectors that can be affected by the current economic situation. It's also natural, André, that we have some adjustment in case of the demand of some players.
Right now, people are having more pressured businesses because of the macroeconomic scenario, and people are seeking more efficiency in fleet size costs. That leads us to have some friendly returns of some assets that eventually could be optimized in the scope of those clients. When we stop and look at that, the highest range of the net income comes from this effect. We want to be more cautious, more transparent, showing to you that this is going to be a challenging year. Now, when we look at the different sectors of the economy where we do see some level of repossessions or returns, we are talking about sectors that have some kind of seasonality and that have come up with some situation, like general cargo transportation, for instance.
On the other hand, we are growing in sectors that are performing very well in the economy: e-commerce, for example, other services like electric energy, logistics, engineering, manufacturing. These are factors that we are seeking to have greater focus and growth, but naturally, there are some situations in some sectors that may be a bit more impacted by seasonality. André , I hope I have answered your two questions. If not, just give me a follow-up. Thank you.
Very, very clear. Thank you very much.
Our next question comes from Pedro Bruno from XP. Mr. Bruno, your mic is clear.
Good morning, everyone. Thanks for taking my questions. I would like to ask about the balance between lease margins, focusing on preparing costs, and also used assets looking forward. Thinking of your strategy that I think has been already implementing of encouraging used vehicle sales as an alternative to leases in the Sempre Novo product, which were a bit below expected. As an alternative to Sempre Novo leases, more sales. What we saw is that you were able to keep the margin quarter on quarter for used vehicles this quarter, even with relevant growth, I think 12% quarter on quarter in your top line. I would like to understand how we should understand the dynamic of these two effects.
That cost, if you could give us some color, how much this affected lease margins for the second half of the year, what we should expect from now on, and this possible impact on used vehicles margins if you really expect it to happen as you are encouraging more sales to address the challenges of non-leased assets. The balance between these two effects on your margins for lease and used vehicles. Thank you.
Hi, Pedro. This is Couto speaking. I'm going to start answering your question, but Cezário can add to that later on. Lease margins and assets prepped. We have been focused on having returned or repossessed assets to have a second lease cycle. All this preparation takes into consideration that the asset may be sold, as it's been going on at a quite positive speed if you consider the year-on-year or quarter-on-quarter comparison, as you mentioned it.
Now, you see that in the EBITDA margin between the first and second quarters, we do see a variation of 2 , 3 percentage points, which is something that is related to, yes, a higher cost in preparing these assets. A higher cost of maintenance for these assets. You clearly see a fluctuation, but with margins at very healthy levels. EBITDA margin in the company historically will get to 85%, 90% when you think of lease EBITDA margins. Now, Pedro, the main offender of our margin, and I would like to draw your attention to the EBIT margin, is idleness because you are depreciating the asset, and at the same time, you do not have a revenue connected to this asset. Our greater effort has to be putting this fleet to work, either by leasing it or by selling it.
Going to the second question, the used vehicles margin, we indeed see, and we did show that on chart 12, if I'm not mistaken, that used vehicle sales continue to appreciate in such a way that we see that depreciation rates are suitable and our assets continue net and appreciated. The main point here is that, yes, sometimes it's worth accelerating sales, as we are doing. Yes, eventually doing away with some margin. It may happen, especially with assets that we have a bit more inventory, like the assets that came from agribusiness, heavy trailers. We can have a bit more effort to do away with margin to see the utilization rate going up faster and therefore going back to lease EBITDA margin with higher utilization. It is a combined effort. We are going to focus on lease, which will bring us better EBITDA margin.
If you have depreciation, I have to have revenue. If I have no revenue and I'm not going to lease the asset, we better sell it. If we have to sell it faster and do away with 2% , 3% points margin, given the scenario of interest rates, we are going to do that because the cash effect is important for the company now. All that said, this is the balance I have, and I hope I have answered your question. Cezário said that he's okay, but I hope I have answered your question, Pedro.
Yes, you have. Thank you very much.
Our next question comes from Guilherme Mendes from JPMorgan. Mr. Mendes, your mic is clear.
Hi, good morning, Couto, Cezário. Thanks for taking my question. I have two follow-ups, really, thinking of models for your case. First, repossessions. You did talk about how other sectors have been impacted. Couto, something you mentioned, if I'm not mistaken in other calls, was to model the 5% of the asset base in terms of repossessions for the future in a conservative way. Looking forward, one or two years' time, do you think that this is a doable assumption or not? Second point, depreciation. You did mention how used vehicle prices are performing well, so depreciation seems to be controlled. Depreciation is probably going to grow and converge to a higher value. I would like you to help us think of when this is going to happen. That is, when are we going to see a depreciation that is more back to normal? Thank you very much.
Guilherme, thanks for asking your questions. I'm going to answer the first, and I'll leave Cezário with the second. Okay. Repossession. Guilherme, the answer is yes. I still believe in the 5% as the normalized level thinking about the company in the future, 2026, 2027. This year, we cannot exclude market factors, the liquidity rates going up in the main financial institutions, the central bank, et cetera. With that, we have closer attention to the scenario of very high interest rates and somehow a pressured economy, as we have seen in the market. We are trying to be faster, and it is something that we just mentioned earlier. It's best to have a truck that is not operating than it is poorly leased. It's better to repossess the asset, although it pressures our utilization rate. These are net assets.
They can be sold or they can be released in different contracts, in more sustainable contracts. This is the decision of the company, and we are going to continue to do so. We'll probably see still a higher level of repossessions this year compared to the 5% that I do believe is a normalized number for future times. This year, as we saw in the first half of the year, about BRL 500 million in returns and repossessions. It is probable that in the second half of the year, we see something at this magnitude, given that we do not see an improvement in the macroeconomic scenario for this year. In the future, for your models, 5% is a very reasonable number, very close to what we believe is going to be true. Cezário?
Hi, Guilherme. About depreciation, on slide 11 of the presentation, we showed implied rates that we have for our main asset: trucks, the most representative of our fleet. You see a growth along recent quarters. We depreciated 4.3%. This quarter, it was 5.4%. We are already showing a certain trend of growing depreciation, as we've always mentioned. I don't believe the rate is going to grow substantially, as we saw in previous quarters, and for some reasons. First, because there is a certain stability in prices when you think of our assets prices in recent quarters. I do not see an acceleration in the depreciation of prices. Also, OEMs are following a movement that is similar to what we saw in previous years, that is, adjusting prices at least to make up for inflation.
This year, we had price adjustments specifically in the beginning of the year, not only because of inflation, but also because of the foreign exchange rate, because you know that these assets have components that are priced in dollars. That makes new asset prices go up, and therefore, used vehicles prices appreciate. I really believe that although in recent quarters, we are showing a growing depreciation rate, it should not grow, if you think for the next four quarters, as much as you saw in the past four quarters. We revisit depreciation rates at least twice a year, considering all that I mentioned: market prices for used vehicles, projection of depreciation of our fleet. It's very hard to give you a hard number, but I do believe that we are close to a depreciation rate for the future that is similar to what we showed this quarter.
Very clear. Thank you very much, Couto, Cezário. Have a good day.
Our next question comes from Daniel Gasparetti from Itaú BBA. Mr. Gasparetti?
Good morning, everyone. Thanks for the opportunity. I have a quick question. I was taking a look at your table on page seven about repossessed assets, and we have a substantial amount of assets that perhaps were not referenced in the inflation rates that we had in 2021. What do you think about margins for the sale of these assets? I would like to explore this specific issue. Thank you very much.
Hi, Gasparetti. It's a pleasure to have you here. Thanks for your question. Gasparetti, we have been showing you that we are keeping our purchasing power, which ensures to us a good capacity to sell our assets even after their full cycle, that is, five to six years. More and more, you know that this period is extending to beyond the five years, which is the basic assumption of our business, but also when we have to sell these assets in the short term. If you will see, we are keeping very healthy margins when we break down the truck segment, which is most of our assets. Very healthy margins in the sale of used assets, as we showed you a bit ahead of the slide that you mentioned.
Both in the sales of assets that fully depreciated, not fully because it's never 100%, but after the full cycle of operation, and also when we have to sell these assets earlier. You see that this is a consequence of our purchasing power, the discounts that we have with the OEMs because of our unique scale vis-à-vis market prices. It gives us the confidence, both for assets that completed the full cycle or in a situation where we have to sell faster. We always have suitable positive margins. This is what we have been working on, and this is what we see in sales as a whole.
I hope I have answered your questions. If not, please let me know.
No, very clear. Thank you very much.
Our next question comes from [James Tice] from Morgan Stanley. Mr. [Tice]?
Yes. Hello. Sorry, I wasn't on mute. Thank you for taking my question. Just one thing. I think during the first quarter conference call, you mentioned that you expected to reach utilization of 90% by year-end. Can you give any update on that expectation? We do much appreciate it. Thank you.
Hi, [Jim]. Thanks for your question. This is Couto speaking. We, yes, continue to pursue levels above 90%, given the level of repossessions that was slightly higher in the second quarter. I prefer to be cautious for the levels of repossessions for the second half of the year. I prefer to be very candid, to be close to the 90%. We might not get to the 90% until the end of the year, which is our goal, to be beyond the 90%. Perhaps a bit below. I do not want to give you any guidance different from what we had, but it might be very difficult to be above the 90%. We should be very close to the 90%. We are going to work very much on that. I think the sale of used assets has been responding very well, as you saw.
We have a very, very positive expectation for the sale of used assets in the second half of the year, and also an expectation to improve our Sempre Novo lease numbers for the second half. Again, being cautious and very transparent, I don't think we are going to get to the 90%. We are pursuing this number. If we don't get to the 90% this year, we will certainly get it next year.
All right, thank you.
Our next question comes from Filipe Nielsen from Citi. Mr. Nielsen, your mic is clear.
Hello, everyone. Thanks for taking my question. I have a question and a follow-up. My question is about credit. You did mention a lot about delinquency and a tighter interest rate scenario. Considering the current scenario, as you mentioned, it has been more of an offender of the demand for new contracts and the demand of a client that sometimes you have to repossess assets earlier, or that sometimes prefers to postpone contracts because of credit, lack of credit. I would like to understand where credit has pressured you most, if it is in demand or in sales, and also about depreciation. If you take a look at the breakdown between machinery and trucks, I did understand clearly. Can you hear me?
Yes, Filipe, we can hear you loud and clear.
Okay, going back.
In depreciation, you did show the breakdown between machinery and trucks. I did understand well the dynamics and trends of depreciation per se, but I would like to understand if the main offender is machinery and truck depreciation is more stable, or if it's to see both walking hand in hand up, although at a slower pace. Thank you.
Hi, Filipe. This is Cezário speaking. Your first question, delinquency. I think the answer is positive for both aspects. First, the current economic environment with interest rates and tighter credit, more general, that has been reflected in the demand for new contracts. We have been very selective, very strict in terms of taking new clients and projects. Obviously, the current scenario generates a greater pressure in the whole process.
That has also meant phases in which we set up to talk to clients and accelerate repossessions to avoid problems to continue for longer. We see that problems are coming up more frequently than expected, especially again because of a time that we are still expecting a recovery of the economy and etc. We believe that to better protect our balance sheets and our assets, we should sometimes seek a solution faster. That sometimes is an early repossession of assets. This is fruit of the whole macroeconomic environment and a delinquency environment that is higher. As for depreciation. Before that, you did talk about the sale of used assets. How much a tighter credit has translated in more difficulties to sell used assets? We are sustainably and continuously increasing sales levels.
Despite the increase, we also do feel a challenge with regards to credit availability to our clients that buy used assets. We believe that we would be at a sales pace that would be a lot better than today if it weren't for the credit restrictions we are feeling in the country today. Our sales channel for used vehicles is reporting a more challenging scenario in terms of credit or potential clients. The whole environment is not helping. Still, we are hitting record sales in used vehicles.
Cezário, this is Couto speaking. If you allow me, Filipe, about sales, I would like to draw your attention to the fourth. These effects that commercial banks that provide credit to our clients are denying more credit. Despite that, I would like to call your attention to the ability of our team and our tools in digital marketing.
We have intensified efforts in digital marketing. We have expanded our commercial reach, and that not only with our own stores, as you saw in recent months, we opened a new store, but also with partners, third parties that are more and more responding to a higher share of used vehicle sales. By increasing our reach in terms of sales, we have been more than enough to overcome the current time where we have more difficulties of credits to our clients. When interest rates eventually go down and credit is more available, our foundations for the sale of used vehicles are still being created and are stronger to get to a time in the economy that is better. When the market picks up with lower interest rates and more available credit, we'll have an even greater ability to sell. Sorry, Cezário.
No, it's okay.
Here's Cezário again, depreciation of machines and equipment, if they would be an offender for the growth of our rates, I don't think so. I don't see that. Of course, each situation is a situation. Depreciation depends on when the asset was purchased, the dynamics of prices for new assets at the time. In machinery and equipment, especially for agricultural equipment, we saw a price adjustment that was very high until 2022. After that, there was a bit of an adjustment down because of a more retracted demand, because of the crisis that we saw in the agribusiness. In the case of heavy equipment, construction, mining, I do not see a huge price depreciation. I think prices tend to be at a normal depreciation rate.
We already use a stronger depreciation for machinery and equipment than for trucks, but we are very comfortable that our annual reviews lead us to a very conservative standing in terms of depreciation.
Thank you very much. Very clear answers.
Our next question comes from Alberto Valerio from UBS. Mr. Valerio?
Good morning, Cezário, Couto. Thanks for the opportunity. First of all, I'd like to thank you for the guidance you have provided. It has helped us a lot, and this new way of reporting is really helpful. Considering this, I would like to hear from you about next year. I know there's a lot to happen, but I think investors are a bit anxious to come back to Vamos. This is a good player, and we are seeing the top line is like below what we had for, I don't know, two years ago or a year ago. If you could give us a driver to go back to your top line growth, anything more cyclic in agribusiness? Is it the situation in Brazil in terms of GDP, interest rates?
What could lead Vamos to pick up its growth in terms of sales, CapEx, be it contracted, deployed? That would be really helpful. Thank you very much.
Hi, Alberto. Thanks for your feedback about the material guidance. We always work to be as transparent as possible and give you clear, objective information. We'll continue to do so to provide even better information. As for our pipeline, I'm going to divide the answering too. The first is that we have been showing consistency in our pace of growth and the signing of new contracts. If you will consider, we have been able to deploy contracts at a very strong level. Even when we compare to the main competitor, that is when someone decides to buy a truck, we are growing in closing new contracts at higher rates than those that are buying new trucks.
The leasing model today is no longer something that the market is unaware of. Everyone that is going to renew or expand their fleets today, and I can say that quite comfortably, everyone considers leasing, and they do the math. It makes sense for us to consider that the pace of growth will continue happening and that opportunities will continue present in the coming quarters. I think that the volume of new businesses that we have is a proof of that. You're right to say that revenue top line is growing less than what we showed in previous years or quarters. Obviously, this is because of the size or volume of repossessions. We had a huge amount of repossessions in the grain transportation sector. It grew too fast. As we grew too fast, we had to shrink also very fast to preserve our assets and our balance sheet.
Had we hadn't these effects, we would be seeing very acceptable levels, even below the 5% in terms of early returns and repossessions. Let's be honest, it's natural that a company the size of Vamos to have some percentage of clients that are going to go through difficulties. It's just natural to see some clients or sectors going through some type of adversities. This is part of the business. Now, when you combine those two effects, that is an early return and repossession diversified into different sectors, which did happen, several sectors because of the current interest rate and macroeconomic scenario is normal. When you combine the grain transportation sector and the market as a whole, yes, we did see our revenue not growing as much as we are used to.
We have to wait for the market to improve, but we are also taking a series of measures to accelerate things. We are improving our utilization rate. It was 84% this quarter. We were at 82%, then 85%, now 84%. We are going to continue pursuing the 90%, and that is the top one priority of the company. When we go back to the 90%, you'll see our top line normalized and we're growing in a more consistent manner because growth is coming, but on the other side, we are cleaning some of our portfolio, which hurts our portfolio. I do believe that in 2026, you're going to see a company operating above the 90% utilization rate, and therefore, at a pace of growth of this year and last year, and continuing so with profitability, with sustainability, and expanding our services in Brazil.
Alberto , I hope I have answered your question, but I'm very confident that this business model, despite the hiccups we saw in recent months, is quite promising, is quite interesting, and it's very important for both the country and our clients.
Very clear, Couto. Thank you very much.
Our next question comes from Rogério Araújo from Bank of America. Mr. Araújo?
Good morning, Couto, Cezário. Thanks for taking my question. The breakdowns that you were offering a re really very good for us to analyze results. I have some follow-ups in terms of asset repossession. First, in addition to the economic scenario that you very well explained, you also have the component that in the past credit was easier, and now it is more strict. When do you think you're going to be able to put in this inventory? Second, now you talked about credits being more strict. That shows a CapEx level for the future that is probably more close to 4 than 5. This level of repossession, 5% normalized. If you think of a company that is not growing, in five years' time, we are going to have 25% repossessions. That is one for each four trucks is repossessed. Does the math make sense? Am I missing something?
If that's the case, shouldn't the company make credits even stricter and therefore reduce the level of repossessions? Do you follow any company abroad to understand normalized levels, to know what is natural? Anything that you could share would be really appreciated.
Hi, Rogério. This is Couto. I'm going to ask Cezário to add to my question at any time. I'm going to start with the end. The 5% normalized in a company that is not growing. I think this is something that does not happen with us because the company will continue to grow. We have the opportunities to continue to grow. We have the balance sheet to continue to grow. If we have a favorable business environment, we will continue to grow. You see that we had good growth volume compared to the time of acquisition. Lease is gaining momentum in Brazil.
We will see an addressable market to continue growing. What I'd like to draw your attention to is the fact that several sectors are growing sustainably. On page 9, for example, we see an increase in urban cleaning, e-commerce growing a lot. Not only the ones that we have on our slides, but several others. Agribusiness continues to be strong, not grain transportation. That is a bit more volatile. When you're talking about sugar ethanol, other sectors in agribusiness that continue to pose great opportunities for the country. Infrastructure, services, Brazil demands infrastructure. Room for growth in a healthy, sustainable manner. I have no questions that we'll have. To imagine that 5% a year for a company that does not grow is not an assumption that we consider. It's quite pessimistic. I do not believe this, thinking of the opportunities that the company has in the market. This is what?
In terms of credit and being more selective. Rogério, we grew fast. In the past, we naturally rented credit. I think that our mistakes were much more connected to specific factors. It's just natural that companies will go through difficulties in their history. We are used to following that from close. That should not reflect in huge repossession amounts for the future. Now, specifically, when we talk about some sectors that were very cyclic, I think this was our greatest lesson learned. For us to avoid huge repossession levels, we have to avoid exposure to seasonal sectors. You know repossessions will happen. We have to have some credit risk when we lease, but we have to be cautious with that. When I see a sector that is very cyclic, very seasonal, and I increase exposure, then I might have greater problems. This is what happens.
When we talk about the 5%, again, Rogério, this is an assumption that we learned to be cautious about. I believe with the quality of our client portfolio, clients that are strong financially and are more and more considering lease as an alternative, we can even be below the 5%. I'm not going to promise you that because today I am above 5%. First, I have to get to the 5% for then you consider how much we can grow sustainably. I don't know if Cezário wants to add.
Just quickly, I think that repossessions, the greatest problem with repossessions, has been the concentration of assets of the same type, so to speak, and from agribusiness. Repossessions are more concentrated in this sector. I don't really believe that a normal level would be 5%. Although today we are above that, it shouldn't be a problem.
Again, we have a structure with reach. We are growing. We are selling these assets. Sometimes we have the capacity to lease these assets for a second cycle. I think it's a very positive dynamic. I should, that we'll just, we are going to get to a level of repossessions that is going to be absolutely uncontrolled. Again, with utilization rates above 90%, that is a healthy level of occupancy. I think that we are adjusting the machine. We are oiling the machine to work well in terms of second life leases through the Sempre Novo Project and also growing our capacity of selling assets fast. As we have a portfolio of usable assets that is more diversified, not as concentrated as we have today because of the fleets coming from agribusiness, it would be easier to resell and to have a second cycle of leasing.
That should be a natural process and the business as usual with a high utilization rate and the levels of our business that we believe possible. From what I understood, the level of BRL 4 billion for CapEx that is being revisited for the year, you don't expect to be kept for the future. You should see it up. With a market environment improving, we will try, yes, higher numbers. The answer, yes, we have room to grow more than that, but we have to wait to see how the market behaves. We have room to grow more. We don't see a lack of opportunity to grow. Quite the opposite. We do have the willingness to grow.
Thank you very much, Couto and Cezário.
Thanks again, Rogério, for your question.
I think that we are getting to the close of our call. There are several questions that we are getting in writing. Our IR team is asking me to tell you that we are going also to answer them in writing. With that, we are going to close the Q&A session. Is that correct? The Q&A session is now closed. We are going to hand over to Mr. Couto for the company's closing remarks.
Everyone, once again, thanks for following us. A few takeaway messages that I would like to bring to you. First, today, everyone considers leasing a truck other than buying. This is something that is more and more present already in the reality of companies and fleet owners in the country. This gives us the confidence we have a very good market to work with. We have very transparently brought to you a bunch of sectors. Also, we see large companies sharing their needs with us.
More and more companies that just invested in their own fleets have the opportunities of improving their numbers through leaseback operations. We'd also see an opportunity in this area to continue growing with this type of product, which brings to us, again, an opportunity for doing business fast with very fast deployment, delivering results also very fast. Economic sectors that are growing fast, e-commerce and others. Another aspect that we are still not doing well, but we will, and we are going to focus on, are contracts of two, three years' time, especially with second cycle assets. This is something we are working on and that we should see opportunities coming from this area. Two important aspects. Prices. I think it's proven that we do have the capacity to price right and be competitive, even working to reduce inventory with less advanced purchases.
We still are able to purchase well and price well, even in a business environment with very high interest rates. We see yields, our internal rate of return, proving our capacity to price right. The extension of contracts with same assets is also a huge opportunity for the company. Since the beginning, since we started, we have been saying that when we started giving you more visibility of Vamos, this is an opportunity for clients and for ourselves because we can adjust prices, ensure good quality to clients at a much more competitive price than renewing the fleet. Just extending the cycle of the assets to seven years instead of five is a great opportunity for both clients and ourselves. Finally, the major focus of the company is to seek efficiency of asset turnover, efficiency of fleet utilization of 90%.
The sale of used assets is already showing very important indicators. We believe that lease at the Sempre Novo Project will bring us great opportunities. We are confident and working very hard for this to show already in the second half of the year. Thanks for following us. Thanks for trusting us. We are very confident that this business is just starting. Thank you very much.
Vamos Conference call is now closed. We thank you very much for attending and wish you a good afternoon.