By Brazil Stock Guide – Localiza&co (B3: RENT3), a leader in Brazil’s car rental and fleet management sector, reported third-quarter 2025 results that surpassed market expectations, demonstrating resilience despite a significant one-off impact from a tax change on new vehicles. The company posted an adjusted net income of R$871 million (approx. US$160m), a 7.3% increase compared to the same period last year. Adjusted EBITDA reached R$3.54 billion (approx. US$650m), a 6.8% yearly growth.
The company delivered a solid operational performance with net revenue climbing 10.8% year-over-year to R$10.73 billion (approx. US$1.97bn). The Car Rental division stood out, with its EBITDA margin expanding 3.5 percentage points to 67.7%, driven by a higher average daily rate (R$150.1) and improved fleet utilization (80.8%). Fleet Management also showed strength with a 73.4% EBITDA margin. These gains were achieved even as the company absorbed a R$929 million pre-tax impact from the reduction of the IPI industrial tax, which affected the book value of its used car inventory (Seminovos division).
“We maintained a consistent trajectory of executing our strategic priorities, focusing on restoring the ROIC spread and consolidating operational and financial efficiency gains,” the company stated in its earnings release, highlighting an annualized ROIC of 15.4% with a 5.3 p.p. spread over the cost of debt.
The results highlight Localiza’s ability to manage external shocks, such as sudden tax changes, through pricing power and cost control in its core rental businesses. While the Seminovos division faced margin pressure from the IPI reduction, it achieved a record sales volume of 75,473 units, indicating robust demand in the used car market. The performance sets a positive tone for the Brazilian services sector, showing that well-managed companies can navigate fiscal volatility.
Localiza Sells Voll Stake to Warburg Pincus
Localiza Rent a Car S.A. (RENT3) and Localiza Fleet S.A. have entered into an agreement to sell Localiza Fleet’s entire 64.6% stake in Voll Soluções em Mobilidade Corporativa S.A. to an entity controlled by funds managed by Warburg Pincus. The transaction values Voll at an enterprise value of BRL 606 million, with Localiza Fleet set to receive approximately BRL 382 million for its share.
The deal, approved by the companies’ boards, is expected to close in the first quarter of 2026. Localiza highlighted that during its ownership, Voll grew revenue more than sixfold and became a leading corporate travel platform in Brazil. A strong commercial partnership between Localiza and Voll will continue post-transaction.
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