RENT3 after 2Q26: Seminovos drives 58% of revenue while rental margins carry the quarter

On 6 August 2026, Localiza & Co published its 2Q26 results (reference date 30 June 2026). Consolidated net revenue reached R$ 12.33 billion, up 24.5% year on year. Adjusted net income totaled R$ 1.00 billion, up 30.6% versus adjusted 2Q25. Consolidated EBITDA hit R$ 3.76 billion (+14.1%). The headline numbers look uniformly strong. The useful lesson is structural: more than half of consolidated revenue now comes from Seminovos (used-car sales), but the rental divisions — Car Rental and Fleet Rental — still supply the high-margin EBITDA that funds fleet renewal and capital return. Reading the quarter means separating volume and revenue mix from earnings quality and balance-sheet mechanics.

What the earnings package actually shows

Figures below follow Localiza's 2Q26 earnings release and investor presentation (IFRS, Brazilian reais):

Management highlighted accelerating year-over-year revenue growth across all three business lines, disciplined capital allocation, and continued progress on return restoration. Annualized ROIC for 1H26 reached 16.1% with a 6.1 percentage-point spread over the after-tax cost of debt — within the company's target band even under more conservative depreciation assumptions.

Three businesses, two different economics

Localiza reports Car Rental (RAC), Fleet Rental, and Seminovos. In 2Q26 their roles diverged:

Seminovos accounted for roughly 58% of consolidated net revenue but only about 3.7% of consolidated EBITDA. Car Rental and Fleet Rental together delivered roughly 96% of EBITDA on less than 42% of revenue. That split is not a flaw — it reflects the business model: Seminovos is the disposal channel that keeps the rental fleet young; rental pricing and utilization are where operating leverage shows up.

Car Rental: pricing, utilization, and a younger fleet

Car Rental net revenue of R$ 2.74 billion rose 11.2% year on year. Rental days grew 6.8%; the average daily rate reached R$ 154.44 (+3.7%). Utilization improved 3.3 percentage points to 81.9%. EBITDA of R$ 1.85 billion was up 13%; margin expanded to 67.6%.

The fleet rejuvenation story is measurable. Average operating fleet age fell from 10.8 months in 2Q25 to 8.2 months — a 24.1% reduction. Management cited lower maintenance and vehicle-preparation costs per car, partially offset by more vehicles prepared for sale and a higher level of tax credits. Average age of cars sold dropped to 19.4 months from 22.2 months a year earlier.

Fleet Rental: back to volume growth after portfolio cleanup

Fleet Rental returned to year-over-year rental-day growth after the 2024–2025 reduction in severe-use contracts. Net revenue of R$ 2.38 billion rose 5.8%. The average daily rate increased 5.7% to R$ 108.56; utilization reached 96.7%. EBITDA of R$ 1.80 billion grew 12.8%; margin jumped 4.6 p.p. to 75.6%, helped by higher rates, better preparation efficiency, lower doubtful-account provisions, and tax credits. Light fleet and car-subscription segments posted roughly 13% revenue growth year on year.

Seminovos: record pace, thin margin, strategic investment

Seminovos was the quarter's revenue engine. Localiza sold 92,043 vehicles in Brazil (versus roughly 68,000 in 2Q25), sustaining a pace above 90,000 cars per quarter — the level management says is needed to optimize the Car Rental lifecycle toward roughly 15 months over coming quarters. Net revenue reached R$ 7.18 billion (+38.9%). EBITDA of R$ 137.7 million rose 62.4%, but margin stayed thin at 1.9%.

The margin story matters. Versus 1Q26, Seminovos EBITDA margin fell 1.2 p.p. because of a higher SUV share in the sales mix (SUVs carry lower gross margins despite higher absolute selling prices) and stepped-up spending on store openings, rebranding, commercial headcount, and marketing. The retail network ended June with 269 stores, 25 more than a year earlier. Management framed these costs as investments to raise the retail share of Seminovos sales in 2H26 — short-term margin pressure in exchange for better inventory turnover and value capture.

Fleet turnover and net investment

Vehicle purchases and sales define Localiza's cash profile. In 2Q26 the company purchased 120,626 vehicles and sold 92,043, investing R$ 11.6 billion in purchases while generating R$ 7.1 billion from sales — a R$ 4.5 billion net car investment in Brazilian operations. Fleet renewal capex per car was R$ 12.1 thousand in RAC and R$ 19.9 thousand in Fleet Rental (last-12-month purchase vs. selling price dynamics).

Total fleet ended at 677,200 vehicles (+7% year on year), partly built ahead of July holiday-season demand. The rejuvenation is visible in operating metrics: newer cars mean less downtime for repairs, supporting utilization gains management already attributes to fleet quality improvements.

Depreciation: the line that connects pricing to returns

Depreciation is the bridge between Seminovos outcomes and rental profitability. Management continued adjusting fleet depreciation rates to reflect residual-value expectations amid new automaker entrants and competitive model launches. Annualized depreciation per vehicle reached R$ 8,243 in Car Rental and R$ 9,198 in Fleet Rental in 2Q26, with management signaling a continued upward trend, especially in RAC where the shorter fleet cycle (around 15 months versus ~33 in fleet) spreads residual-value revisions over fewer periods.

The key management message: higher depreciation is embedded in rental pricing. Despite rising depreciation, adjusted net income still crossed R$ 1 billion, and ROIC spread improved — suggesting the repricing cycle is working, not breaking.

Cash, debt, and the July refinancing

Net debt ended June at R$ 32.35 billion (+4.2% versus year-end 2025). Cash totaled R$ 11.39 billion — enough, management said, to cover maturities through the current year and the following two. Net debt to EBITDA closed at 2.16x; net debt to fleet value improved from 59% to 55% year on year.

In July 2026, after quarter-end, Localiza completed an exchange offer refinancing approximately R$ 7 billion in debt — described as the largest such transaction in the Brazilian market and the company's largest aggregate debt issuance. The deal extended average maturity and reduced average funding cost, reinforcing a liability-management pattern the company has pursued for several years.

1H26 free cash flow before interest totaled R$ 1.8 billion: R$ 5.2 billion from rental activities was offset by R$ 5.2 billion of net car capex and other investments, partially cushioned by a R$ 2.0 billion increase in payables to vehicle suppliers.

How the market read the print

Brazilian financial press coverage after the release focused on the R$ 1 billion profit milestone, the 92,000 Seminovos sales pace, and the July debt rollover. InfoMoney and UOL highlighted fleet rejuvenation (operating age down to 8.2 months) and margin expansion in both rental divisions, while noting that Seminovos revenue growth outpaced rental revenue growth — consistent with the structural mix shift described above. These are third-party interpretations, not audited facts, but they explain why a quarter with thin Seminovos margins can still read as operationally strong when rental utilization and pricing hold.

How to use the explorer on this package

1. Open RENT3. Find the ITR with reference 30/06/2026 and the August 2026 earnings materials.
2. Start with net revenue (R$ 12.33 bn) and split rental (R$ 5.15 bn) vs Seminovos (R$ 7.18 bn) — revenue mix ≠ earnings mix.
3. Compare Car Rental EBITDA margin (67.6%) and Fleet Rental (75.6%) with Seminovos (1.9%) before treating consolidated revenue growth as uniformly profitable.
4. Read fleet age (8.2 months operating, 19.4 months sold) against depreciation per car (R$ 8,243 RAC) — rejuvenation helps costs and utilization before it fully shows in residual values.
5. Check net debt / EBITDA (2.16x) and the July R$ 7 bn refinancing as a post-quarter balance-sheet event.
6. For the current quote, use the company page; this article freezes only figures already reported in the release and press.

Limits of this reading

• Adjusted net income excludes extraordinary items in the quarter; reconciliations appear in the earnings release and CVM filing.
• Seminovos margin is sensitive to SUV mix and retail-investment timing — sequential comparisons can mislead.
• Depreciation reflects forward-looking residual-value estimates; management explicitly expects continued increases in RAC.
• The July exchange offer closed after quarter-end; June balance-sheet figures do not include its full effect.
• Fleet and vehicle counts may differ slightly between press summaries and the investor presentation due to rounding and timing.
• Analyst and media commentary reflects third-party models, not company guidance.

Where to view in the explorer

• RENT3 — Localiza & Co
• Company list
• Blog

Sources

• Localiza & Co 2Q26 earnings release and investor presentation, 06/08/2026 — consolidated and segment figures, fleet, depreciation, leverage, FCF
• Localiza Q2 2026 earnings call transcript, 07/08/2026 — management commentary on Seminovos investments, depreciation outlook, July refinancing
• InfoMoney, 06/08/2026 — segment breakdown, fleet age, debt and exchange offer
• UOL Economia, 06/08/2026 — consolidated highlights, fleet investment, management quotes
• RENT3 on the explorer — filings and quote

Disclaimer

This article is for informational and educational purposes only. It is not investment advice. Adjusted figures differ from reported IFRS results, and fleet depreciation involves management estimates of future residual values. Localiza operates a capital-intensive, interest-rate-sensitive business across rental and used-car channels; when in doubt, the official CVM filings and Localiza IR materials prevail. Refer to those documents and, if needed, a licensed professional.