By Brazil Stock Guide — Movida (B3: MOVI3) reported net income of R$152 million in the third quarter of 2026, up 117.4% from a year earlier and above the company’s own guidance, as stronger rental demand and improved pricing lifted profitability across its core businesses. Consolidated EBITDA rose 21.4% to a record R$1.795 billion, while net revenue increased 2.8% to R$3.87 billion. Operating profit (EBIT) climbed 27.2% to R$1.086 billion.
The results highlight a significant improvement in the profitability of Movida’s rental operations, even as overall revenue growth remained modest. Combined revenue from car rentals and fleet management rose 19.3% to R$2.399 billion, substantially outpacing the 9.9% increase in the average operating fleet. The company’s return on invested capital (ROIC) reached 16.6% over the trailing 12 months, up 2.2 percentage points from a year earlier and 5.8 percentage points above its average cost of debt.
Movida’s traditional rent-a-car business delivered particularly strong results. Rental volumes increased 22.2% to 7.4 million rental days, while fleet utilization climbed 5.9 percentage points to 77.7%. Average daily rental rates rose 5% to R$167, helping drive a 27.8% increase in segment revenue to R$1.117 billion. EBITDA jumped 29.6% to R$780 million, with the segment’s EBITDA margin reaching a record 69.8%.
The fleet management and outsourcing business also benefited from improved pricing and contract renewals. Revenue rose 15% to R$1.189 billion, while EBITDA increased 19.1% to R$942 million, producing a record margin of 79.2%. New contracts signed during the quarter generated an average monthly yield of 3.7%, compared with 3.4% a year earlier, suggesting further room for profitability gains as older contracts are gradually renewed at higher rates.
Movida’s used-car business, which plays an important role in managing the lifecycle of its rental fleet, sold approximately 20,100 vehicles during the quarter. Revenue totaled R$1.471 billion, down from R$1.755 billion a year earlier, reflecting lower vehicle disposal volumes. Nevertheless, the gross margin improved by 0.9 percentage point to 5.8%, supported by a higher proportion of retail sales. The average age of the rental fleet declined to 12 months, down 4.4% from the previous quarter.
Despite Brazil’s elevated interest-rate environment, Movida continued to reduce its leverage. Net debt stood at R$17.5 billion at the end of September, while the net debt-to-EBITDA ratio declined to 2.56 times, compared with 2.74 times a year earlier — its lowest level in six years. The company ended the quarter with R$3.5 billion in cash and extended its average debt maturity to 4.2 years, from 3.2 years. Financing costs remained substantial, however, with net financial expenses rising 13.3% to R$900.7 million.
Cash generation remains an important consideration for investors. Free cash flow before interest declined to R$224 million from R$572.5 million a year earlier, as net fleet investment increased sharply to R$1.407 billion, largely reflecting expansion in the fleet management business. The combination of record operating margins, stronger returns on capital and declining leverage points to an improving financial profile, although Movida’s capital-intensive business model and significant financing costs remain central to its investment outlook.
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