Mills reports revenue and profit spike in ‘highly competitive’ market

Brazilian equipment rental company Mills reported a 2.1% year-on-year increase in net revenue to BRL 492.9 million in the third quarter of 2026, supported by growth in its heavy equipment and intralogistics operations.

Net income rose by a dramatic 94.5% to BRL 130.9 million, benefiting from non-recurring items, including BRL 54.3 million in tax credits relating to previous periods, as well as lower net financial expenses. Adjusted EBITDA, which excludes non-recurring items, increased by 0.6% to BRL 256.1 million.

The results come as French equipment rental group Loxam is in the process of acquiring a 50.3% controlling stake in Mills, following the deal announced in May. The transaction remains subject to regulatory approval.

Sergio Kariya, CEO of Mills, said, “Against a still highly competitive environment in certain markets, we continued to prioritise disciplined capital allocation, operating efficiency and greater revenue visibility.” He added the company would also continue to seek, “a balanced approach between growth, return on invested capital and financial strength, while preserving an appropriate capital structure to support Mills’ long term development.”

Rental division growth 

The company’s rental division generated revenue of BRL 407.7 million in the quarter, an increase of 3.3% compared with the same period last year.

Growth was driven primarily by heavy equipment and intralogistics, alongside a return to revenue growth in light equipment, despite continued challenges in the segment.

The rental fleet reached approximately 17,000 units at the end of September, an increase of 5.8% year on year, while longer-term contracts accounted for 56% of rental revenue.

Rental adjusted EBITDA rose 5.3% to BRL 200.6 million, with the margin increasing from 48.3% to 49.2%, despite higher rental costs, including spare parts and other inputs.

Capital expenditure totalled BRL 100.5 million during the quarter, a decline of 61.5% year on year, although spending increased 13.5% compared with the second quarter.

Mills said the reduction was due to delays in mobilising certain new contracts, imported equipment delivery schedules and higher comparative spending in 2025 associated with the acquisition of Next Rental. Approximately 89% of quarterly investment was directed towards rental assets.

The company ended September with net debt of approximately BRL 1.1 billion, while its net debt-to-adjusted EBITDA ratio fell to 1.1 times from 1.5 times a year earlier.