Ladies and gentlemen, welcome to the Vamos conference call to discuss the results for the third quarter 2026. Joining us today are Mr. Christian Hahn, CEO, and Mr. Rodrigo Faria, Interim CFO and Investor Relations Officer. This conference call is being recorded, and the replay will be available on the company's website, ri.grupovamos.com.br. The presentation is already available for download in Portuguese and in English. All participants will be in listen-only mode during the presentation. We will then begin the Q&A session when further instructions will be provided. Before we proceed, 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 because they relate to future events, and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operating factors may affect the company's future results and could cause results to differ materially from those in the forward-looking statements. I will now hand over to Mr. Christian Hahn, who will begin the presentation. Mr. Hahn, the floor is yours.
Good morning, everyone, and welcome to our third quarter 2026 earnings call. I will start the presentation on slide two. I would like here to go over the main highlights of the quarter. We continue to deliver significant operational improvements, including higher fleet utilization, lower asset inventories, limited fleet growth, and reduced net CapEx requirements. These are translating into strong financial results, including net income of BRL 151 million, which tripled in 12 months, which represents an annualized return on equity of 20%, exclusive the effects of the capital increase on those financial results and shareholders' equity. EBITDA exceeded BRL 1 billion for the first time, growing faster than revenue, while leverage fell below 3x for the first time in five years.
Now, specifically talking about each business division on slide three, we start with Leasing. Among the various improvements in our operating metrics, I would highlight record net revenue up 11% year-over-year. Record EBITDA of BRL 1 billion, rose up 15%. EBITDA margin of 88.1%, up 2.6 percentage points. Contracted CapEx of BRL 1.2 billion, up 42% compared to 3Q 2025. Record lease fleet of BRL 17.5 billion. Fleet utilization of 88.8%. A significant 56% reduction in asset repossessions. Strong performance in used asset leasing with a 200% increase in contract extensions, reaching a record BRL 482.9 million.
In fact, when we add up the contracts secured in just the first nine months, we have already exceeded our full-year guidance. Also, a record BRL 195.1 million in contracts for the Sempre Novo product, up 181% compared to 3Q 2025. In used asset sales, the company increased sales volumes of older, more challenging assets while maintaining sales margins at expected levels. Used asset inventories declined by 26%. Trailers inventories decreased by 61%, and year-to-date sales volume increased by 20%. The number of machinery and equipment units sold grew 84% in 3Q 2026 and 65% in the first nine months of the year, while gross margins on truck sales remained at 7%, both in the quarter and year-to-date through September.
Slide five, I would like to present the trend in our fleet, both in terms of gross fixed asset value and number of assets. As we have seen over the past few quarters, fleet expansion has slowed due to a reduced need to purchase new assets, given the opportunities we have identified to lease used assets and extract greater value from our existing fleet. As shown on the slide, lease revenue grew 8.6% compared to 3Q 2025, outpacing fleet growth, both in terms of fixed asset value and number of assets. Gross fixed asset, in turn, increased 4.1% compared to 3Q 2025. Highlights include 16.8% growth in forklifts, driven by stronger demand from intralogistics operations, and 6.6% growth in trucks, truck tractors, and trailers serving a variety of sectors.
On the other hand, construction and agricultural assets have seen lower demand for new contracts and increased asset disposals from the sugar and ethanol sector in 2026, in addition to the more challenging environment facing agribusiness as a whole. In terms of units, the fleet declined by 0.6%. Next slide, we have contracted CapEx, which in 3Q 2026 totaled BRL 1.2 billion, up 42% compared to 3Q 2025, bringing growth for the first nine months of the year to 26.6%. The increase in contracted CapEx was driven not only by higher contracting volumes for new assets, but also by a new record in contracted CapEx for our Sempre Novo product, benefiting from a better mix of used assets in inventory and the relatively young age of our fleet.
In addition, we saw fewer contract renewals for new assets, given the strong volume of contract extensions, which we will discuss in more color on the next slide. As for the lower IRR on contracted CapEx in 3Q 2026, this is mainly explained by a higher proportion of contracts with larger customers, consistent with the trend we have seen throughout the year, as well as shorter average contract terms. In the pie chart in the upper right-hand corner, demand was diversified, particularly across general cargo transportation, logistics, and industrial sectors. Deployed CapEx in the third quarter 2026 totals BRL 965 million, up 9.2% compared to 3Q 2025.
For the first half of the year, total deployed CapEx reached BRL 2.5 billion, down 3.8% compared to the same period 2025, as contracting activity in 2026 was more concentrated in the second and third quarters, whereas in 2025, a larger share occurred in the first half of the year. Also to highlight is that new asset contract deployment has been accelerating as the company receives more assets from manufacturers. Meanwhile, the lower volume of Sempre Novo deployments compared to the second quarter reflects the asset preparation process. Once the process is completed, it will contribute to increased deployments.
Slide seven, we show our contract extensions. Starting this quarter, we are reporting this separately, excluding them from both contracted CapEx and deployed CapEx, since contract extensions do not involve cash outlays or a deployment process. This quarter, extensions reached a new record, exceeding our guidance for the full year 2026 in just nine months. As we can see on the right, the year-to-date total of BRL 970 million accounted for 129% of the BRL 700 million guidance midpoint and 108% of the upper end of the guidance range, BRL 900 million.
This reflects the relatively young age of the fleet compared to the average fleet in Brazil, which gives our leasing contracts significant extension potential, particularly in an inflationary environment characterized by continuously high prices for new trucks in Brazil. On slide eight, we show the trend in asset repossessions and early returns. This quarter, repossessed asset volumes declined significantly, 55.6% compared to 3Q 2025 and 41.2% compared to the adjusted volume for the second quarter 2026, reaching their lowest level since repossessions began in the first quarter of 2023.
In addition, repossessions showed no significant concentration in any particular sector. As a result, repossessions and early returns have now remained below the 5.5% level recorded in 2025 for four consecutive quarters. For the first time, they are also more closely aligned with the delinquency rate of 2% recorded throughout 2026, a level more consistent with historical patterns. In addition, diversification of repossessed assets continues to improve compared to the company's historical figures since 2023. Unlike any previous quarter, no single sector accounted for a significant share of repossessions.
This is important because it contributes to a better mix of used assets, which can be either leased through the Sempre Novo product or sold through the used asset sales business. The company has been taking a stricter approach to delinquent customers to speed asset repossessions. This has only been possible thanks to the improvement in our used asset sales and the development of our Sempre Novo product. This has allowed us to improve the quality of the customer base while also securing new contracts that undergo a more strict approval process.
On slide nine, we show that we have also continued to reduce our inventories in idle assets, both new and used. The balance of BRL 2.2 billion in September 2026 represented an 18% reduction over 12 months, driven in part by leasing activity, particularly increasing leasing of used assets through Sempre Novo, which allows us to deploy more assets than we purchase. At the same time, record contract extensions and fewer repossessions have reduced the number of assets being removed from operation and added to inventory, reducing the need for used asset sales.
Comparing September and June 2026 balances, the slight increase in inventories was due exclusively to higher asset purchases, consistent with the increase in contracted CapEx for the new assets during the year, and a greater concentration of assets coming off lease at the end of the quarter. It is also important to highlight that the combined inventory reductions from leasing, totaling BRL 306 million, and asset sales, totaling BRL 909 million, amounted to BRL 1.2 billion, equivalent to 45% of September 2025 inventories.
Finally, I would like to clarify that the BRL 2.2 billion balance in September 2026 refers to the gross fixed asset value, that is, the original amount paid for these assets. Of this total, only BRL 1.2 billion relates to used assets, of which BRL 938 million have the potential to be leased through Sempre Novo. Another BRL 123 million relates to older assets or assets whose conditions make them suitable only for sale. The net book value of these assets after depreciation, which reflects the company's estimated market value for them, is BRL 1.3 billion.
With that in mind, let's move to slide 10, where we present a theoretical exercise. Based on average monthly used asset sales revenue of BRL 109 million over the last 12 months, we estimate our inventories represent approximately 11.4 months of sale. Assets eligible for leasing through Sempre Novo represent an estimated 6.1 months of inventory, while assets available exclusively for sale represent an estimated 5.3 months of inventory. Considering that an inventory turnover period of around three months would be ideal for a used heavy asset sales operation, currently we have equivalent to approximately eight months of excess inventory to address through sales alone, without factoring in the benefits of growing demand for our Sempre Novo product.
Now moving to slide 11, we show the trend in new and used asset inventories and their corresponding average turnover periods. Looking specifically at new asset inventories in the upper chart, we reached BRL 435 million in September 2026, with a slight increase reflecting higher deliveries from manufacturers. These assets are currently being prepared for immediate deployment. Even so, our average inventory turnover period remains at a historical low of 1.6 months. Looking only at used asset inventories in the chart below, the balance declined to BRL 1.8 billion, its lowest level since the third quarter of 2024.
The inventory turnover period increased slightly to 8.6 months due to a greater concentration of used assets coming off lease in September, making it impossible to sell them before the end of the quarter. I would also like to highlight that inventory of assets eligible for Sempre Novo product reached its lowest level since the third quarter of 2024. The next slide highlights the size of our inventory in terms of number of assets. In September 2025, we had a total of 7,998 assets in inventory, with a high concentration of trailers and also truck tractors. Truck tractors accounted for 26.6%.
Most of these assets came from the grain transportation sectors, which had been the largest source of repossession since 2023, and we have mitigating this exposure, and today, this sector accounts for only 1% of our revenue. Now, 12 months later, the total number of assets has declined by 26.1%, to 5,908, and the largest reductions occurred precisely in trailers and also truck tractors. When we group these assets into two, trucks, truck tractors, and trailers, and machinery and equipment on the other side, we see a significant imbalance in our used asset inventory mix in September 2025, which has since been adjusted to better reflect the composition of our overall fleet.
On the bottom part of the slide, we see the same trend analyzing these inventories based on their gross fixed asset value. On slide 13, we present the trends in fleet utilization and the value of leased fixed assets. We ended the third quarter of 2026 with a fleet utilization rate of 89%, an increase of 2 percentage points over the 12 months, and virtually unchanged from June 2026. The reason utilization remained at 89% was the increase in new assets inventories, as these assets are currently being prepared for deployment over the coming months. This is a natural consequence of the strong volume of new assets contracts signed, particularly in second quarter of 20 26.
Excluding the impact of the increase in these inventories between June and September, our utilization rate in the third quarter would have been 89.3%. That represents an increase of 0.3 percentage point over three months. Another way to show the improvement in fleet utilization is to exclude new assets undergoing preparation and assets held for sale from that calculation. This is the approach more commonly used in the vehicle rental industry. When we make this adjustment, we can see that fleet utilization continues to increase, reaching 95% in September 2026, its highest level since June 2024.
Turning now to our leased fleet, its value reached BRL 17.5 billion in September 2026, a new record and an increase of 8.5% over 12 months, outpacing the 4.7% growth in our total fleet. This reinforces our message that we are able to extract greater value from our existing asset base, improving profitability, cash generation, while reducing our net CapEx requirements. Moving on to slide 14, we highlight the diversification of our rental revenue and the declining concentration among our largest customers.
From an industry perspective, we continue to see well-diversified demand across various sectors of the economy. Looking at the tables in the middle of the slide, particularly in the comparison between September 2026 and September 2025, we can see that several sectors have increased their share of our revenue, such as logistics, sugar and ethanol, retail and e-commerce, urban sanitation, fuel transportation, among others. And a t the same time, when you look at the chart on the right-hand side of the slide, we can see that our 100 largest customers continue to account for a smaller share of revenue as we bring new customers every day. This directly contributes to our diversified revenue growth, bringing rental revenue to a record of BRL 1.2 billion.
Moving on to slide 15, let's discuss the final results of our Leasing operations. In third quarter of 2026, net service revenue reached BRL 1.2 billion, a new record, and an increase of 11.4% compared to third quarter of 2025. That was supported by higher fleet utilization, a record leased fleet, higher yields of new contracts, and contractual price adjustments. Leasing services EBITDA also reached a new record, exceeding BRL 1 billion for the first time, an increase of 14.8% compared to third quarter of 2025, outpacing revenue growth driven by higher revenue, cost and expense control, and the resulting expansion in EBITDA margin.
Turning now to fleet depreciation shown on the lower left chart, depreciation levels remain appropriate, allowing us to achieve margins of between 0%-1% on used asset sales, as indicated in our full-year guidance. The increase in depreciation rates reflects a normalization process as additions of new assets to our fixed asset balance accelerate. Also, we have offered selective price discounts that we offer its discounts, one-time discounts on a limited number of green line and yellow line machines, truck tractors, and trailers that sustained some damage.
This decision was based on a market study we conducted, which showed that selling these assets more quickly at lower prices would be more advantageous than attempting to recover their market value through additional maintenance expenses, which would also offer only limited price recovery and increase the time they would remain in our yards. The costs associated with this damage were duly charged to and paid by the respective leasing customers, as we usually do and t hese temporary increases in depreciation will also be mitigated as these affected assets are sold.
Leasing services EBIT reached BRL 680 million in the third quarter of 20 26, up 9.4% compared to the third quarter of 2025, with an EBIT margin of 58.7%. The number of assets sold in the third quarter of 2026 was in line with the second quarter of 26, but declined 9.7% compared to the third quarter of 2025. This was largely due to an exceptionally strong sales volume in that period last year, which accounted for 30% of total asset sales for all 2025, something we did not see this year. The reduction in sales volume is mainly explained by the greater use of our used asset inventory to meet the record demand for Sempre Novo contracts throughout the year.
And at the same time, fewer used assets than expected have been coming off lease, both because of contract expirations, which have been reduced by record contract extensions, and because of the lower number of assets repossessed throughout the year. Even so, looking at the first nine months of 2026, sales volumes increased by 20.1% in line with our sales expectations for the year. We have also seen banks becoming more restrictive in extending credit to finance purchases of used assets, resulting in a decline in financing approval rates for our used asset sales customer throughout the year, with conditions deteriorating further in recent months.
Revenue totaled BRL 301 million, down 23.8% compared to the third quarter of 2025 and f or the first nine months of the year, revenue reached BRL 986 million, down 2.4% compared to the same period in 2025. So the fact that revenue declined more than unit sales volume is mainly due to the higher average age of the assets sold and sales mix resulting in a lower average selling price. In the third quarter of 2026, the average age of assets sold was higher than in comparison quarters, as inventories of newer assets, particularly repossessed assets, are increasingly being used for leasing through our Sempre Novo product, which has continued to set new records in contracted volumes.
In addition, fewer repossessions combined with a high volume of contract extensions over recent quarters have contributed to an increase in the average age of our fleet, particularly assets coming off lease and being made available for sale. Our used asset sales mix in the third quarter of 2026 also had a higher concentration of equipment such as forklifts, pallet trucks, machinery, attachments, and various other items that have lower average selling prices on a per-unit basis. I will now turn over to our CFO, Rodrigo Faria, who will provide more details on our consolidated financial results.
Good morning, everyone. Thanks, Christian. Starting with slide 18, we are going to talk about consolidated financial results. Consolidated net revenue increased 4.3% compared to 3Q 2025, supported by growth of 11.4% in Leasing revenue and 28.3% in industrial operations. Consolidated EBITDA for 3Q26 reached a new record of BRL 1 billion, up 15.8% year-over-year, outpacing revenue growth and resulting in margin expansion. EBIT totaled BRL 687 million, up 10.4% compared to the same period last year.
In the third quarter of 2026, net financial expenses totaled BRL 480 million, declining 14.7% and 12.4% compared to 3Q 2025 and 2Q 2026 respectively. The reduction was driven by lower IPCA/TLP rates associated with FINAME, including a negative adjustment in August, combined with the reduction in the benchmark interest rate and deleverage. As a result, net income in 3Q 2026 increased 199.1% year-over-year to BRL 151 million. As we can see in the chart in the lower right-hand corner, this marked our fourth consecutive double-digit sequential net income growth and the highest in the past seven quarters.
On slide 19, we show cash generation and changes in net debt. As you can see, the company generated BRL 32 million in operating cash flow as the strong performance of our Leasing operations with record net revenue and EBITDA more than offset the lower contribution from asset sales and higher CapEx disbursements. In addition, the company continues to gradually reduce its outstanding balance of receivables, excluding the reduction that would have remained stable between June and September this year.
Slide 20, on the first chart, we continue comfortable with our net debt amortization schedule and continue to monitor market opportunities that allow us to improve debt maturity profile in 2027 and 2028. Leverage 2.9x , we reached the lowest level in the five years and below our guidance of three times for December this year, mainly driven by the strong contribution from EBITDA and control over net debt. Our fleet value to net debt coverage ratio improved once again, reaching 1.36x .
Finally, I would highlight the continued reduction in our outstanding balance of receivable assignments, which declined 48% in 12 months, combined with the reduction in covenant net debt. It helped have our leverage ratio down from 3.6x- 3.12x . On slide 21, we talk about rates of return. LTM return on invested capital as of June 2026 was 13.7%. After-tax cost of debt was 10.6%, with a ROIC spread of 3.1 percentage points. LTM return on invested capital was lower due to the reduced EBITDA contribution from used asset sales, further normalization of depreciation, and higher effective tax rate.
Return on equity was 13.7%. Adjusting for the effects of approximate BRL 600 million capital increase and annualized third quarter 2026 net income, it would have reached 19.8%. That shows the significant potential the company has to increase return on equity through continued operational improvements and strong leverage management, even before factoring in any further interest rate cuts. That concludes my presentation. I will turn the floor back to Christian for his closing remarks.
Final slide, I would like to reinforce our view of the business opportunities ahead. In Leasing, we operate in a market where penetration remains low, demand is resilient and growing. We also have approximately BRL 700 million in used assets available for leasing at market level, which will allow us to grow our leasing results without requiring additional CapEx. We see tremendous opportunities to expand our addressable market. To capture these opportunities responsibly, we have pursued selective growth, focusing on profitability and appropriate contract pricing. We have also adopted stricter policies for credit approval, collections, and asset repossessions, with the goal of optimizing our risk-return profile.
The company is constantly developing new solutions, which have already resulted in contract extensions and the creation of the Sempre Novo product, which is expanding our addressable leasing market by making leasing more accessible through competitive pricing and shorter contract terms. In used asset sales, as market leaders, we have an opportunity to develop a vast market that lacks a sufficient supply of newer fleets. For that, we have continued to invest in people, sales channels to prepare the company to handle higher sales volumes in the coming years while protecting margins, just as we do today.
More broadly, we remain focused on tight cost and expense control, improving our maintenance processes, and implementing our cost reduction program, which has allowed us to deliver more stable, consistent margins. In cash and debt management, we continue to control our net CapEx requirements and have opened up new sources for capital, ranging from bond issuances to recent capital increases. These transactions have allowed us to raise BRL 3.5 billion over two years, diversifying creditor base and bringing in BNDESPAR as strategic shareholders.
We remain alert and ready to act and respond to any economic scenario, as we are prepared to take a conservative approach to growth whenever necessary, as we have demonstrated over the past years. In short, we are prepared for whatever comes. Thank you very much, and we will now open for your questions. We may start now.
We will now begin the Q&A session for investors and analysts. If you have a question, please click on Raise Hand. If your question is answered, you can leave the queue by lowering your hand. If you want to ask a question in writing, please enter your question in the Q&A field together with your name and company. Our first question comes from Matheus Santana from Bradesco BBI. Mr. Santana, you are cleared.
Good morning, everyone. Thanks for taking my questions. Congratulations on your results. I have two questions. This quarter, we saw weaker sales of used assets, but for a good reason, because you had lots of contract extensions, Sempre Novo, etc . I would like to know how you weigh the selling of an asset or using these two levers. Do you have prioritization in terms of utilization? Do you have a preference for cash, revenues? How does the scale happen in terms of where to allocate your assets? My second question is the sector exposure. You see that some sectors are growing a lot, like e-commerce, and I would like to know your focus for the future, and even approaching a specific topic. Sugar and ethanol did grow a lot this quarter, b ut these are my two questions. Thank you very much.
Hi, Matheus. Thank you. Well, to answer your two questions. First, as for used assets, you put it very well. There are two things that we have to take into consideration. First, we define the asset when it is returned, if it has the profile to be extended or re-leased. Extensions generally are simpler because we are already with the client and we are going to negotiate the contract for another 12, 24 months, and there is no need for new deployments. The customer already knows the asset, so this is a process that we have been working very hard on, and it has made sense and t he growth that we are having there shows that.
Sempre Novo is an asset that is returned in-house, and then together with our operation teams, we price the year, the kind of operation, and the life cycle of this asset, more 12, more 24, more 36 months. Generally shorter contracts, because this asset is going to a different client that does not know the asset, so we have to prepare it for a healthy, useful life. If the asset does not have these characteristics, then it is turned to sale in one of our 24 stores throughout Brazil.
As for your second question in terms of industry exposure or sector exposure, we are more and more expanding the number of sectors and have a mix match of the type of customer per segment, because we think this is very important not to depend on a single segment due to the volatility that you are very familiar with in the market. Some quarter and another, there will be a segment standing out with growth, but throughout the year, things more or less follow the same trend. Sugar and ethanol, generally you have large contracts, large volumes. E-commerce, we had a recent contract that did have a way on these numbers. This is what we think in terms of segment exposure.
Very clear. Thank you very much.
Our next question comes from Ruan Argenton from XP. Mr. Argenton, your mic's clear.
Hello. Good morning, Christian, Rodrigo. Thanks for taking my questions. I have two that I would like to approach. The first is thinking of 2027. Christian, in the end of the presentation, and you do have that on slides, says the focus continues on deleveraging. However, I would like to understand your view of how you balance that with growth. We did see an acceleration of growth this year, and that has been significant for you, b ut I would like to know how you balance that with deleveraging next year. Do you have a leverage ratio that would be more comfortable for you to think of a bit of a higher growth space, or is it total focus on deleveraging? So t his is my first question.
The second question has to do with marginal yields. I think you did have a slight drop this quarter. You did explain it well. It has to do with the mix of larger customers, but I would like to understand further ahead, so w e have high interest rates in the scenario. We have some restrictions for the industry. So I would like to understand how you see margin now yields for the future, how difficult it's been to negotiate or renegotiate new contracts. How do you see the more difficult macroeconomic scenario in terms of marginal yields? Thank you very much.
Thanks for your question, Ruan. Okay. In terms of balancing growth and deleveraging, indeed, this is something that we have been focusing on along this year. The idea is for 2027 is to be even stricter. We did talk in the presentation about selective credit, and this is something that we are looking into and t he major clients have been very important because they do bring us more security, which is very important, and the non-need to have heavier CapEx as we are focusing on Sempre Novo products and contract extensions. This, in a way, works better with CapEx. In terms of a dropping yield, it's true. When you have a large client, a larger contract, the yield does come down, b ut the best thing is to follow the IRR of this contract for us to be sure that the investment is bringing returns.
And Rodrigo speaking here, just to add to what Christian mentioned, how do we price our clients? You take the IRR, which is very important, but it's not only that. You also think of the spread in the long term, in the five-year term of the contract. So this week, we already have our curve updated to the pricing of 15% if you look at the five years from today. So we calculate the spread and how much IRR I will need as extra fat. So that has to consider the price of purchasing, expected depreciation, service costs, delinquencies, so a ll that we have to bring in to calculate spread and yield. Therefore, yield is not when we start pricing. We start pricing thinking of the long curve, thinking of gains of spread in the long curve, and then we do it.
When it is a large customer, it's just natural that you have a bit more pressure on IRR and prices because the discussion goes, "Should I price this contract with an ordinary risk as all the portfolio? Or if I get a client that has a better cost of debt, a very good rate, I should perhaps decrease the level of expected delinquency of this contract and therefore translate the decreased risk into prices." With that, you have lower IRR and lower yield. Now, we are not only seeking return. You have to think of return, but the risk of return.
With the scenario that we have, sometimes you prefer a larger client that will give you certainty of a lower IRR than a customer that delivers a higher IRR, but has the risk of not completing the contract or a higher risk of delinquency, and consequently, bring me to early returns or repossessions. So, we have to look into the risk of return very cautiously for the year of 2027. So maybe the IRR is going to be closer to 20% to 21% than 22%. That will depend on opportunities in terms of contract pricing.
Thank you very much.
Our next question is from Rogério Araújo from Bank of America. Please go ahead, sir.
Hello, good morning. Thank you for taking my question. In this quarter, there was a leap in terms of depreciation of trucks, and the margin of used assets is close to zero. In some cases of equipment, it is negative. So what I would like to know is, with the new positions that you have taken as CFO, did you deep dive into some residual value? What exactly still has negative margins, something that needs to be reviewed in terms of rates? If you made such assessment, what were your conclusions? Thank you.
Thank you, Rogério. Yes. We work very diligently here to make an in-depth assessment of pricing of our assets. In the case of used assets, it is no different. Specifically in this quarter, we had some specific cases such as construction and agricultural equipment that had more damage because usually they are longer contracts and they are more unfavorable conditions and w e gave a discount because any damage that happens is usually charged from the clients anyway, so w e decided to speed up sales, and that affected depreciation values. But i f you analyze that, we have been analyzing depreciation month-over-month and quarter after quarter based on equipment categories, such as the example I gave for construction and agricultural equipment. Intralogistics is also considered differently, so w e do that aligned with our pricing team.
Hi, Rogério. This is Rodrigo, and thank you for your question. As Christian mentioned, as soon as we took over our positions, one of the first things that we analyzed was depreciation, not just of assets, but also based on the aging range of assets, so m aybe a truck that was brought back and was two years old. Counterintuitively speaking, its depreciation is higher than a five or six-year-old truck because it was also affected by the pandemic times and everything, so We are analyzing these aging issues, and also depending on the segment.
And as Christian mentioned, there were some cases related to the construction and the agricultural equipment, but this does not mean that this particular segment is doing well. It is not, because the agricultural business is struggling, but t he main problem related to depreciation was related to damage. This is already accounted for, and it could have affected the maintenance cost that was not from this quarter, but from previous quarters. But w hen we look at this combination that we had in our hands, we decided to depreciate assets, because according to our studies, if we were to undertake them to maintenance activities, that would not be accounted for in the asset prices, because the unit price was higher.
This is why we decided to move this way, which does not change results ultimately, just the depreciation rate and s ince we are getting our contract extensions longer instead of selling them, so we usually took them back and sold because there were no new products available, t hat is what happened in the past. And when we lease an asset, I am keeping an asset with a longer average depreciation and within my immobilized assets so that depreciation rate is lower, but when you combine the accelerated sales, over BRL 1 billion this first half of the year, we have 7%-8% in combination, and the average is lower than historical levels, and also the assets are maintained for a longer period of time.
So, if you have this compound effect taken, that leads to a higher depreciation rate, b ut if we consider the sales of these assets once they are sold, then you're having lower pressure. As we sell those assets, we might get also new assets, again with damage and i n the future, we need to make another analysis to see whether we'll keep these assets, depreciate them, and so on.
That was very clear. I'd just like to ask a follow-up question. You talked about the worsening credit conditions. How do you expect that to go for the fourth quarter? Are you concerned with that and m aybe that will lead to the need of selling trucks, or not necessarily?
Rogério, we have seen this not just in this quarter, but also in the past. I think it just became worse this quarter. If we just considered used asset sale, so we had negative credit, 70% of credit was denied and I'm talking about what was denied by banks, for bank credit and n ow it's 76% in this quarter, so there was a 6% increase in credit denials. In September specifically, it was above 80%. So indeed, it's difficult to approve credit that affects the used assets market, but we are also working with other products, including extending our contracts. That has also helped us to avoid problems with inventory.
Thank you.
Our next question is from Filipe Nielsen from Citi. Free to go, sir.
Hi, and thank you for taking my question I would like to touch on two points. First, you had a guidance for 2026. And as things are moving, some lines are even exceeding guidance, as you mentioned that yourselves. But there are some lines that are not quite there. Used assets is one example. Are you going to maintain the guidance? So how do you see the trend of different lines until the closing of the year?And now thinking of 2027, we discussed growth a little bit, as well as changes between leased options versus used assets. So how do you see that for next year? Do you plan to keep the focus on always having new assets and working with contract extensions?
Thank you, Filipe. Indeed, as you mentioned in your first question, we are exceeding guidance, but others are still not there, especially used assets. So t his is far away from the guidance, but we still have the whole half of the year to achieve that. We wish we had sold more, especially considering the inventory levels we have, b ut when we take the contract extensions, as I mentioned, there was a record levels, assets that were moved to used assets, so less assets to be sold and l e also have leasing, and leasing of used assets has also increased. Whether you like it or not, this also has to do with sales.
Now, answering your final question, you're talking about five different lines for next year. They work in different ways. Contract extensions, for example. We have planned contract extensions of the first cycle, meaning first time that a contract will be extended. We're talking about five-year assets. We can also work with them at the sixth or seventh year and w e are also mapping possible contract extensions for a second cycle. Maybe the leases are a little bit shorter, maybe there is still a good time for that asset, depending on the work that it does, so i t may be possible to have a contract extension for a second cycle. So a s for the cycle and possibilities for next year, we do not have a figure that we are ready to disclose, but soon enough you will hear about that.
I would just like to add something, Filipe, about the fact that the used assets line is below the guidance levels. The guidance we had for contract extensions, and considering what we are delivering, we had BRL 900 million for the whole year. If I keep the same level we have until the end of the year, we would deliver BRL 1.2 billion, BRL 1.3 billion in contract extensions, so t his means BRL 300 million above our guidance. This almost BRL 400 million is the gross immobilized amount, but if you deduct from that accumulated depreciation in the past five years, 20%-25%, although this is not quite the calculation because we will have some contract extensions of different asset ages, but the average is five years, and that would give an average of 25% depreciation.
So BRL 400 million at market value would be about BRL 300 million in terms of market value. So if I sold this used asset, there would be this equivalent revenue, so y ou have potential sales revenue that was not sold and then because contracts were extended. So we have 1.3 of the used assets today, but if you take those BRL 300 million, that would mean that BRL 1.3 billion would be BRL 1.6 billion, and you can add that to repossessions, because when we prepared the guidance, the repossession level used for calculation was the same percentage we had of last year, 5.5%, and we are running about 4% now. There is also this 1%, and that means the BRL 300 million in assets.
You can also add that in the case of used assets, there is a very likely chance that I will meet the guidance. So we are getting less assets to sell, and especially in the case of repossessions, I am using more in used assets, so I am taking a newer unit from sales, and the average ticket will be reduced. In terms of amount, it does not move so much. The number of assets sold in the past nine months accounted for a 20% increase, and the guidance expected a 23% increase in revenue, so i t has to do with average ticket, actually.
Perfect. This is very clear. Thank you.
Our next question is from Jens Spiess from Morgan Stanley. You are free to go, sir.
Hello. Yes, thank you for taking my question. The first one is on the repossessions. I know they are very much under control now, but the largest share of repossession, I think, came from e-commerce and retail. So just trying to understand, what type of profile of company are we talking about? Is it smaller companies that are subcontracted by larger corporations, or what is the profile here? And secondly, on depreciation, just want to get a sense of how much your full-year guide is still relevant considering your year-to-date depreciation. Thank you.
Okay. I will just go into repeat to the audience in Portuguese, so I am just going to repeat saying that your question had to do with repossessions and also the profile of customers. He had a question on depreciation and what would change for the full-year guidance. So Jens, thank you for your questions. Let me start with the question on repossessions. So considering e-commerce, we are talking about small to medium-sized clients. We also have some early returns, and we are not going to go into the details of that, but sometimes this happens too. E-commerce is not an issue. We do not see any problems with concentration of one particular industry.
In the past quarter, we had overall cargo industry, maybe that had higher share of sugar and ethanol, b ut if you look over the year, this is a very good distribution between industries and sectors, differently from the past when we had more concentration with the grain transportation business. Now it is more related to a macroeconomic issue. As amazing as it may seem, this is even good because since there is not a specific concentration on one particular industry, this helps us in our mix of assets, again, accelerated sales, and we are able to ramp up new assets and more industries will be more interested in them, and then we can work with more sectors.
So repossessions have not been a headache, and we have been able to sell those assets very well. About depreciation, it is important to say that since we expected to sell more assets and we are keeping more used assets because we are having more business in terms of Sempre Novo and also contract extensions, we are retaining more gross immobilized assets. So regardless of changing the depreciation rate, only because of that, I will have more assets to be depreciated. And then related to the answer to the previous question, there is also a change in mix.
So we are having more newer assets, and our rates are closer to our reality. It is not as bad as it was in the time of the pandemic. So yes, it might exceed the guidance a little bit, but we need to wait until the end of the year to see how these immobilized assets will behave, how much of that inventory we will be able to sell, and how much we are going to get from that. But we are not concerned with depreciation or problems to meet the guidance of this year.
Perfect. Thank you.
Our next question comes from Gabriel Rezende from Itaú BBA. Mr. Rezende, your mic is clear.
Hello, everyone. Good morning, Christian, Rodrigo, the IR team. Just a follow-up on depreciation. Thinking of the one-off discount that you had for some machines, I understand that you sold some of the machines in this quarter, but from what I understand, there are some assets that are still under maintenance, and that explains partially the increase in depreciation. When do you expect to clear those assets from your base and therefore see a decrease in depreciation, o r you already had this decrease in depreciation, and this should not be a significant factor for the coming quarters?
And then going back to repossessions, if you could give us a bit more color what the company understands why you're having a sequential healthier profile. Because when you take a look at the macroeconomic scenario, and you did talk about that, tighter credit, higher interest rates, everything seems to be as it was, but the company is doing better in terms of repossessions. So what do you think was crucial for this quarter that you intend to replicate for the coming quarters? Thank you very much.
Thanks, Gabriel. Well, starting with your last question. Repossessions, indeed, we had very tight controls. We have a new team now in terms of credit and billing collection that has been working very hard and very, very fast. Whenever we detect something out of the ordinary, we are very fast, either by collections or negotiations, or even the repossession of the asset and t hat would be our limit, to go and have the asset back.
So again, being very strict in granting credit, and not only that, monitoring, getting to know the clients better. We interview clients, we get to know them better, so v ery responsible granting of credit. So I think that repossessions have to do that. We know what's going on in the market now. We know delinquency rates. We know how tight credit is, so i t's up to us to be very strict, and any stress, we have to do our job, renegotiate, or collect.
This is Rodrigo speaking. You talked about depreciation as well, right?
Yes.
If the effect of depreciation was 100% one-off in the third quarter, and even if it's sold in other quarters, you already adjusted for depreciation. Yes, we have already adjusted for depreciation of the assets that we received but t hat does not mean that we are not going to have other assets. We have Sempre Novo and everything, but I do not see, for now, on October the 30th, a reason for us to have any other hiccup of depreciation. If the assets are sold, you might see some volatility bringing depreciation rates down and r emember, the implied depreciation rate annualizes the quarter. It's not 12 months.
So an effect that is more concentrated in the quarter is going to be boosted as you sell the asset, and the higher depreciation is sold together with this asset, you are going to benefit from that. So this is an implied rate just for you to do your math, but we do not see that for the year. The year does not have the 7% depreciation. This is a picture of this quarter. And important to say is that we have been very conservative in the depreciation of trucks, so w e are having a 7% for trucks. We could try to offset the depreciation of machines with a lower depreciation of trucks, but we don't think it makes sense to be aggressive in depreciation rates.
Thus, management, the leadership, the company as a whole, we have a bias that is focused on higher depreciation and leave the fat for the future. The fat did not show this quarter because the mix. If I had sold more trucks and newer assets, you would have had a higher selling price, a higher margin, and a lower depreciation. But we are not, again, concerned with depreciation for now.
Very clear, Rodrigo. Thank you very much. Thanks, Christian.
Vamos Q&A session is now closed. We are going to turn the call to Christian Hahn for his closing remarks.
Well, we do have some questions in writing. We are going to answer to you because of time constrictions. My closing remark is the following. I would like to leave this message with you all. Today, we have a company that is lean, prepared, organized, and ready for any market circumstances. We are very resilient. We have our homework to be done in the next months and in the next year. We have to either lease or sell our assets, improve our utilization rates, and improve our costs, and focus on some points, as we have thoroughly talked about today.
We have a huge opportunity to improve contracted CapEx due to the high interest rates, truck prices going up, tighter credit. This is all markets opportunity to us. The Sempre Novo product is just starting. We reorganized the company. We have a large amount of products being prepared by commercial department to our customers. It is an option for the customers to have shorter terms, shorter prices, which improves our inventory turnover and revenue, and our capacity to extend contracts in the first or second cycle.
This is growing, and the trend is free to continue to grow, and a lso, you should expect our used assets sales with a new structure, new sales locations. We are being stronger on the online markets. We just premiered a website last week, so t he idea is to contribute to the sale of our assets. For all those reasons, I am certain that Vamos is prepared for today and for what is coming.
Thank you very much, and I wish you a very good afternoon. Vamos conference call is now closed. We thank you very much for joining and wish you a good day.