By Brazil Stock Guide – Movida (B3: MOVI3) reported a net profit of R$70 million in the third quarter of 2025, down 10.5% year-on-year, as higher financing expenses eroded part of the company’s operational gains. Even so, Movida delivered its strongest operating performance in years, with EBITDA up 18.5% to R$1.48 billion and the return on invested capital (ROIC) reaching 14.4%, the highest level since 2022. The company expects a record profit between R$75 million and R$90 million in the final quarter of the year.
Despite record margins, Movida’s financial result deteriorated as Brazil’s higher interest rates pushed borrowing costs up. The company’s net financial expense jumped 36% to R$795 million, pressured by a higher average CDI rate — up from 10.4% to 15% — and a larger net debt position, which increased from R$14.2 billion to R$15.5 billion. With an average cost of CDI + 1.9%, the heavier debt load reduced net income even as operations became more efficient.
Strong Operational Performance
Total net revenue held stable at R$3.77 billion, while rental revenue advanced 15.3% to R$2.01 billion, fueled by growth in fleet management (GTF) and rent-a-car (RAC) segments. Sales of used vehicles dropped 13.6%, reflecting tighter inventory control and better pricing discipline. The EBIT margin expanded to 22.7%, and the consolidated EBITDA margin climbed 6.3 percentage points to 39.3%, underscoring the company’s focus on yield rather than volume.
Operating cash flow reached R$1.1 billion, up 10% from the same period in 2024. Movida reduced leverage to 2.7× net debt/EBITDA, below its 3.0× target, with R$3.3 billion in cash and no major maturities until 2026. Free cash flow before interest surged 250%, supported by lower CAPEX requirements and improved supplier management.
Margins Expand Across Segments
In RAC, the average daily rate rose 12% to R$159, with the EBITDA margin hitting 68.8%, the highest since Movida’s IPO. In GTF, revenue per car grew 12%, and EBITDA reached R$791 million, maintaining a 76.5% margin. Both segments benefited from long-term contracts and higher pricing power.
In its first official earnings guidance, Movida projected 21%–45% profit growth for 4Q25 and further deleveraging to 2.6–2.8× net debt/EBITDA. CFO Daniela Sabbag Papa said the forecast reflects the company’s “discipline in execution and commitment to sustainable value creation.”
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