By Brazil Stock Guide – VAMOS S.A. (B3: VAMO3), a Brazilian heavy equipment rental and used sales company, reported third-quarter 2025 results characterized by severe profitability pressure. The company’s adjusted net income shrank 72.7% compared to 3Q24, to R$ 50.4 million (approximately US$ 9.1 million), despite robust 25.2% growth in net revenue, which reached R$ 1.53 billion (about US$ 277 million). The performance was impacted by a sharp increase in financial expenses and depreciation. However, in a positive move, the company achieved its full-year leverage target ahead of schedule.
During the period, adjusted EBITDA grew a modest 3.7%, to R$ 895 million, with the margin falling 12.2 percentage points to 58.5%. Pressure came mainly from fleet maintenance and preparation costs and margin normalization in the used assets division. On the other hand, VAMOS celebrated operational records: leased fleet, contracts in effect, and leasing service revenue reached all-time highs. Asset sales (used vehicles) surged 87.4%, to R$ 394.9 million.
“We managed to reduce net debt for the first time in 8 quarters, reaching a level of 3.27x net debt / LTM EBITDA, already meeting the guidance for the year,” highlighted Gustavo Braga Couto, CEO of VAMOS, in the management message. He attributed this achievement to high organic cash generation and a slowdown in asset purchases, benefited by the strategy of extending contracts without the need for new investments.
Brazil’s heavy equipment rental sector has been navigating an environment of high interest rates, which pressure fleet financing costs. Despite this, demand for brand-new asset rentals proved resilient, with VAMOS’s Contracted Capex rising 37.8% in the quarter. This performance contrasts with the contraction in the new truck and implement sales market, suggesting a possible shift by companies towards the rental model in a challenging macroeconomic scenario.
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