Armac Locacao Logistica e Servicos SA
BOVESPA:ARML3
Armac Locacao Logistica e Servicos SA
Armac Locacao Logistica e Servicos SA engages in the rent of heavy equipment. The company is headquartered in Barueri, Sao Paulo and currently employs 3,400 full-time employees. The company went IPO on 2021-07-28. The firm offers yellow line equipment, which includes wheel loaders, hydraulic excavators, backhoe loaders, crawler tractors, mini loaders, motor graders, road rollers, agricultural tractors, lifting platforms, forklifts and trucks, among others. The firm serves a customer base distributed across 23 Brazilian states and the Federal District, in the agricultural logistics, agro-industrial, fertilizer, mining, pulp and paper, food & beverage, transportation and infrastructure sectors. The firm's business model consists of converting the ownership of the equipment into a service provided to the customer, in contracts that include availability for 24-hour maintenance on the asset and flexibility to return or replace the equipment when the customer's project is completed.
Armac Locacao Logistica e Servicos SA engages in the rent of heavy equipment. The company is headquartered in Barueri, Sao Paulo and currently employs 3,400 full-time employees. The company went IPO on 2021-07-28. The firm offers yellow line equipment, which includes wheel loaders, hydraulic excavators, backhoe loaders, crawler tractors, mini loaders, motor graders, road rollers, agricultural tractors, lifting platforms, forklifts and trucks, among others. The firm serves a customer base distributed across 23 Brazilian states and the Federal District, in the agricultural logistics, agro-industrial, fertilizer, mining, pulp and paper, food & beverage, transportation and infrastructure sectors. The firm's business model consists of converting the ownership of the equipment into a service provided to the customer, in contracts that include availability for 24-hour maintenance on the asset and flexibility to return or replace the equipment when the customer's project is completed.
Revenue Growth: Armac reported gross revenue of BRL 535 million, up 11% quarter-over-quarter.
Margin Expansion: Rental EBITDA margin reached above 50%, a level not seen since mid-2023, driven by operational efficiencies and asset renewal.
Cash Generation: Operating cash flow exceeded BRL 196 million, allowing the company to deleverage by nearly BRL 37 million this quarter.
Asset Sales & Store Rollout: Asset sales totaled BRL 82 million; the ramp-up of new asset stores is ongoing, with not all 20 planned locations open or at full sales capacity.
Cost Discipline: Significant SG&A reductions were achieved, especially in payroll and administrative expenses, with additional gains from technology and AI adoption.
Positive Outlook: Management is confident that current margin levels around 48–50% are sustainable, though there is some expected quarter-to-quarter volatility due to seasonality.
