Armac Locação Logística e Serviços (ARML3) investor relations material

Executive summary

• Q1 2026 featured strong performance in business units with long-term contracts, operational efficiency gains, and improved gross rental margin by 4.1 p.p. year-over-year, but also challenges from seasonality and holidays impacting short-term rentals and used asset sales.

• Two M&A transactions (Engelog and Braslift) were closed and integrated, strengthening the agro-industrial and forklift units, with SAP and governance structures implemented; investment in Escad was announced in April 2026.

• The company is leveraging its strong capital structure and liquidity (BRL 1 billion in cash) to pursue growth opportunities, including fleet renewal, market consolidation, and expansion of pre-owned equipment stores to at least 30 units by year-end.

• Efforts are underway to diversify the client base and regions to reduce seasonality impacts, with technology and AI being developed to streamline rental processes.

• The company is transitioning to a new governance model, segmenting into four groups for greater transparency and alignment.

Financial highlights

• Gross revenue for Q1 2026 was BRL 488.5 million, up 1.4% year-over-year; gross rental revenue was BRL 378.3 million, down 6.3% year-over-year due to contract demobilizations and seasonality.

• Revenue from asset sales reached BRL 110.2 million, up 73.2% year-over-year, driven by sales of older, fully depreciated assets.

• Adjusted EBITDA was BRL 213.5 million, up 35.1% year-over-year, mainly due to BRL 42.0 million in bargain purchase gains from acquisitions.

• Net income was BRL 13.3 million, up 6.3% year-over-year, but down 55.2% sequentially from 4Q25.

• Free cash flow for shareholders was BRL 28 million after operational and financial activities.

Outlook and guidance

• Management expects to continue reducing leverage, aiming for a ratio below 2x EBITDA.

• Organic revenue growth is projected in the low double digits for 2026, with EBITDA margins expected to exceed 50% for the full year.

• CapEx will remain focused on fleet renewal and selective expansion, with positive dynamics anticipated for the next two years and expansion of pre-owned equipment stores targeting annual used-asset sales above BRL 1 billion.