This article first appeared on GuruFocus .
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Consolidated Net Revenue:BRL41.8 billion, up 12.1% year-over-year.
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EBITDA:BRL13.8 billion, an increase of 15.4% versus 2024.
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Adjusted Net Income:BRL3.4 billion for the year.
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Annualized ROIC:15.5% with a spread of 5.5 percentage points above the cost of debt.
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Rental Revenue:BRL19.6 billion, BRL1.5 billion higher than 2024.
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Car Rental EBITDA Margin:67% in 2025, up from 62% in 2024.
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Fleet Rental EBITDA Margin:72.6% in 2025, up from 66.8% in 2024.
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Seminovos Revenue:BRL22.2 billion, 15.6% higher than in 2024.
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Cars Sold in Seminovos:296,452 cars, a 5.9% increase year-over-year.
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Free Cash Flow Before Interest:BRL6.3 billion, nearly doubling compared to 2024.
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Net Debt:BRL31.1 billion, a 3% increase from the end of 2024.
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Cash Position:BRL11.8 billion, sufficient to cover short-term debt and obligations.
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Release Date: February 27, 2026
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 significant increase in rental revenue, reaching BRL19.6 billion, which is BRL1.5 billion higher than 2024.
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The company achieved an EBITDA margin of 67% in car rental and 72.6% in fleet rental, showing improvement from the previous year.
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Localiza successfully reduced its exposure to severe used vehicles, improving profitability and optimizing capital allocation.
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The Seminovos division sold over 296,000 cars in 2025, contributing to a 15.6% increase in net revenue compared to 2024.
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The company expanded its digital offerings and customer experience innovations, including AI solutions and digital pickups, enhancing customer satisfaction with an NPS above 85%.
Negative Points
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The company faced challenges with a higher effective tax rate due to the write-down of deferred income taxes from Locamerica.
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Despite improvements, the competitive environment in fleet rental remains challenging, with some players engaging in irrational pricing.
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Localiza's net debt increased by 3% to BRL31.1 billion, partly due to advanced payments to automakers.
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The Seminovos division's margin was impacted by higher advertising investments and the early launch of the IPVA free campaign.
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The company is still in the process of rejuvenating its fleet, which affects the spread between new and used car prices.
Q & A Highlights
Q: Can you comment on the dynamics of the Seminovos wholesale market and the level of stocks in wholesalers? A: Typically, wholesalers reduce their inventory in December to avoid IPVA taxes at the beginning of the year. In January, they start purchasing strongly to return to normal inventory levels. In the first two months of this year, we observed strong demand from wholesalers with price stability. - Bruno Lasansky, CEO
Q: What were the impacts of campaign costs on Seminovos margins, and how is the BYD contract performing? A: Campaign costs, including IPVA promotions, impacted margins by about 0.7 percentage points. We expect margins in the first quarter to be closer to Q3 levels. The BYD contract is a strategic partnership, providing additional supply and modern vehicles, primarily hybrids, which are performing within expectations. - Rodrigo Tavares, CFO and Bruno Lasansky, CEO
Q: How do you see depreciation trends and ROIC spread moving forward? A: Depreciation trends should remain stable in the short to medium term. We need to see consistent Seminovos margins before considering changes. The ROIC spread is nearing target levels, reducing the need for aggressive price pass-throughs. We aim to optimize our portfolio and efficiency in 2026, with growth likely resuming in 2027. - Rodrigo Tavares, CFO
Q: Are you optimistic about used car sales growth in March, and how do you see maintenance and preparation costs evolving? A: We are optimistic about sales growth, despite February's Carnival impact. Maintenance and preparation costs are decreasing per car due to fleet rejuvenation and efficiency improvements, which should continue positively impacting costs in 2026. - Bruno Lasansky, CEO and Rodrigo Tavares, CFO
Q: How are new OEM entrants affecting vehicle prices and the competitive environment in Rent-a-Car and fleet management? A: New OEM entrants provide more supply and negotiation leverage. Our depreciation assumptions already account for potential price deflation. The Rent-a-Car market remains disciplined, while fleet rental sees some irrational pricing, but overall, the competitive environment is positive. - Rodrigo Tavares, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
