Mills Locação, Serviços e Logística (MILS3) Q2 2026 earnings summary

Executive summary

• Net revenue reached R$472.2 million in 2Q26, up 4.9% year-over-year, and R$933.3 million in 6M26, up 8.2% year-over-year, driven by Heavy Equipment and Formwork & Shoring units.

• Adjusted EBITDA in 2Q26 was R$268.9 million, up 18.3% year-over-year, with margin expanding 6.5 p.p. to 56.9%; 6M26 adjusted EBITDA was R$504.0 million, up 16.2%.

• Net income rose 21.7% year-over-year to R$106.3 million in 2Q26, with a net margin of 22.5%; 6M26 net income was R$303.3 million, up 95.4%.

• Awarded the Pró-Ética seal for ethics, integrity, and compliance standards.

• Long-term contracts accounted for 55% of rental revenue, enhancing revenue predictability.

Financial highlights

• Adjusted operating cash flow in 2Q26 was R$188.3 million, up 23.2% year-over-year, with EBITDA-to-cash conversion at 66.2%.

• CapEx in 2Q26 was R$88.6 million, down 45.6% year-over-year; 91% allocated to rental assets.

• Leverage (Net Debt/Adjusted EBITDA) at 1.16x, down 0.2x year-over-year; average debt maturity at 3.5 years, cost at CDI +1.09% p.a.

• Gross revenue in 2Q26 was R$515.3 million (+4.1% YoY); 6M26 gross revenue was R$1,017.7 million (+7.3%).

• Net margin improved to 22.5% in 2Q26 (+3.1 p.p. YoY); ROE (LTM) was 26.5%, ROIC (LTM) 21.7%.

Outlook and guidance

• Focus on expanding long-term contracts, operational efficiency, and selective capital allocation to drive higher returns and predictability.

• Management remains confident in strategy execution but cautious due to rising delinquency rates and a challenging macroeconomic environment.

• No further non-recurring events expected for Next Rental in upcoming quarters.

• Some postponed investments may resume in H2 2026, depending on project progress.

• Regulatory approval for the Loxam SAS transaction is pending, which could impact future strategic direction.