In This Article:
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Consolidated Net Revenue: 10.1 billion reais, a 16.7% increase year-on-year.
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EBITDA: 3.3 billion reais.
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Net Income: 842 million reais, a 14.8% increase compared to Q1 2024.
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ROIC: 13.7% with a spread of 4.4% points over the cost of debt.
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Car Rental Division Revenue: 2.6 billion reais, a 9.1% increase year-on-year.
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Fleet Rental Division Revenue: 2.2 billion reais, a 13.3% increase year-on-year.
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Seminovas Revenue: 5.3 billion reais, a 21.8% increase year-on-year.
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Average Daily Rate (Car Rental): 147.1 reais, an 11.2% increase year-on-year.
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Average Daily Rate (Fleet Rental): 100.5 reais, a 10.7% increase year-on-year.
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Fleet Size: 627,997 cars, a reduction of about 41,000 cars compared to the end of 2024.
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Number of Locations: 702 locations in Latin America, including 535 corporate branches in Brazil.
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Free Cash Flow Before Interest: 2.3 billion reais generated from rental activities.
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Net Debt: 32.2 billion reais, an increase of 2.1 billion compared to the end of 2024.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Localiza Rent A Car SA (LZRFY) reported a 14.8% increase in net income for Q1 2025 compared to the same period last year, reaching 842 million reais.
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The company achieved a consolidated net revenue growth of 16.7% year-over-year, totaling 10.1 billion reais.
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Localiza Rent A Car SA (LZRFY) successfully increased its EBITDA margin in the car rental division by 1.9 percentage points to 65.2%.
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The company maintained a healthy debt profile, with 9.4 billion reais in cash, sufficient to cover short-term debt and accounts payable.
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Localiza Rent A Car SA (LZRFY) continued to optimize its fleet, reducing the number of cars by 40,821 in Q1 2025 to improve productivity and utilization rates.
Negative Points
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The company faced challenges with allowance for doubtful accounts, particularly in the truck subsegment associated with agribusiness, impacting the EBITDA margin.
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Localiza Rent A Car SA (LZRFY) experienced a significant reduction in accounts payable to automakers, affecting cash flow and increasing net debt by 2.1 billion reais.
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The fleet rental division saw a contraction in EBITDA margin by 1.6 percentage points, despite efforts to optimize the portfolio.
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There is a potential risk of higher depreciation rates due to the increasing gap between new and used car prices.
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The company anticipates a gradual rejuvenation of its fleet, which may extend into 2026, potentially affecting operational performance and capital allocation.