Mills grows in 2025 despite rental challenges

Brazil-based Mills has reported a strong final quarter and full 2025 financial year, despite the challenging rental environrment in the country.

Net revenue stood at BRL492.7 million in the fourth quarter and BRL1,838 million for the full year, representing growth of 13.9% and 16.7%, respectively. Income reached BRL78.6 million in Q4 and BRL301.2 million in 2025 - an increase of 3.8% and 5.6%, compared to 2024.

The growth was primarily fueled by the Heavy Equipment, Intralogistics and Formwork & Shoring units, said the company, alongside a partial recovery in the Light Vehicles segment. “Even amidst a macroeconomic backdrop of heightened volatility and capital selectivity that persisted throughout the period, the company successfully capitalized on the favorable investment cycle in infrastructure and civil construction in Brazil,” it said. 

The Rental unit delivered a resilient performance, said the company, amid “decelerating economic activity and project deferrals.

“In the Light Vehicles segment, we observed a recovery in leased volume, especially in smaller equipment classes, a movement that contributed to the unit’s growth recovery compared to the third quarter.”

Nevertheless, Mills said it continued to evaluate alternative strategies to mitigate potential impacts of the cooling market, as well as prioritizing longer duration contracts to enhance revenue predictability, strengthen client relationships and increase business resilience. 

In the Heavy Equipment unit, despite seasonal effects associated with the year-end rainy season and the early off season for some clients, the division saw an increase in contracts and greater penetration into more resilient economic sectors. This resulted in total revenue growth throughout the financial year.

Plans for continued investment 

In parallel, the company added that it continues to combine organic investment with acquisitions of high-quality assets aligned with its strategy and culture.

Investment fell in the fourth quarter, totalling BRL80.3 million but amounting to a 52.5% reduction compared to the same period in 2024. However, Mills said this reflected greater selectivity in capital allocation.

Approximately 83% of the quarter’s Capex was directed toward the acquisition of rental assets, with a focus on the Heavy Equipment and Intralogistics units, in line with the strategy of prioritizing projects with higher return predictability.

For the full year 2025, Capex reached BRL675.7 million, a 32.1% decrease year-over-year. Of the total invested, BRL179.3 million related to the acquisition of Next Rental, a subsidiary of the Pesa Group. The transaction included more than 700 assets, contracts and employees, with operations in more than 14 states and a significant presence in segments such as mining, forestry, agribusiness, and civil construction. 

Mills said it would continue to evaluate strategic merger and acquisition opportunities while finalising the Next integration, allowing it to accelerate expansion in Heavy Machinery and Intralogistics.

Sergio Kariya Mills, CEO of Mills, commented, “We remain equally committed to expanding our footprint in the markets where we operate, strengthening cross selling between business units and the penetration of leasing as a structural solution for our clients.

“In this context, we will continue to invest in selective fleet expansion, service quality, and the digitalization of our commercial platform, focusing on capturing new market opportunities and increasing recurring revenue.”