BRAZIL · BUSINESS
Key Facts
- The company Localiza&Co is a Brazilian group that rents cars to travellers and leases fleets to businesses.
- What happened It reported third-quarter net income of R$1,125 million (about US$204 million) on Thursday 5 November 2026.
- The comparison Profit is up 29.1% on adjusted profit a year earlier, without a one-off tax charge.
- The sales Net revenue rose 14.4% to R$12,278 million (about US$2.2 billion).
- The payout The board approved R$614.9 million (about US$112 million) in interest on equity, a shareholder payout.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
- Prediction markets Polymarket, a prediction market, gives 88.5% to no change in Brazil’s December rate decision (7 November, 2:44 a.m. Eastern Time).
Localiza&Co, a Brazilian car rental and fleet leasing group, earned R$1,125 million (about US$204 million) in the third quarter of 2026. It published the result on Thursday 5 November 2026, and profit rose 29.1% against adjusted profit a year earlier.
For US readers, the result shows how a business that buys cars with borrowed money copes while Brazilian interest rates stay high. Interest costs and used-car prices decide its profit, so both matter for anyone who owns Brazilian stocks through a US fund.
What Happened
Net revenue, the company’s total sales after taxes, reached R$12,278 million (about US$2.2 billion), up 14.4% from a year earlier. Earnings before interest, taxes, depreciation and amortisation, known as EBITDA, reached R$4,029 million (about US$732 million), up 13.7% on adjusted EBITDA a year earlier.
Earnings before interest and tax, known as EBIT, reached R$2,516 million (about US$457 million), up 11.3% on adjusted EBIT. All conversions in this article use the market close of the real on 6 November 2026, R$5.5053 per US dollar.
Why Growth Is 29% and Not 336%
A year earlier Localiza booked a one-off loss of R$613 million (about US$111 million) tied to a reduction in the Green IPI, a federal tax on manufactured goods. That left reported profit at R$258 million (about US$47 million), so the raw jump is 336%.
The company compares this year with adjusted profit of R$871 million (about US$158 million), which removes that charge. The 29.1% gain is therefore the fairer measure of how the business is doing.
Live Company IntelligenceLocaliza Rent a Car S.A — the full investor dossier
Car Rental, Fleet Leasing and Used Cars
Car rental net revenue rose 16.5% to R$3,025 million (about US$550 million), driven by a 10.6% rise in volume and a 5.2% higher average daily rate. About 82.4% of the rental fleet was in use, and the average rental car is now 7.8 months old, down from 10.7 months a year ago.
Fleet leasing to companies earned R$2,428 million (about US$441 million), up 6.8%, with 96.9% of those cars in use. The used-car arm, which the company calls Seminovos, sold 87,850 cars in Brazil, and its used-car revenue, including Mexico, was R$6,772 million (about US$1.23 billion), up 16.0%.
Debt and Interest Rates
Net debt, meaning borrowings minus cash, stood at R$33,063 million (about US$6.0 billion) on 30 September 2026, up 6.5% from the end of 2025. About R$24.7 billion (about US$4.5 billion) is locked in through swaps, contracts that fix the interest rate, at an average of 12.6% plus the company’s own borrowing margin.
The other R$8.3 billion (about US$1.5 billion) floats with the CDI, Brazil’s overnight interbank rate, which follows the central bank’s policy rate. Localiza says it protects the returns built into its leasing prices by fixing the cost of most of its debt.
Pressure on Car Prices
Localiza says new car brands, heavy promotions and tight credit are pushing down vehicle prices and the resale value of fleets. It is building lower resale values into new leasing contracts, restoring rental rates and adjusting depreciation.
The company also says it wants more electrified vehicles in its fleet. It calls the macroeconomic outlook uncertain, with depreciation and interest rates still high.
What It Means for You
If you rent a car in Brazil, note that Localiza’s average daily rate rose 5.2% in a year. At R$5.5053 per dollar, R$100 is worth about US$18.16.
If you hold Brazilian stocks through a US fund, the quarter shows growing profit but also a heavy debt load that depends on interest rates. This article reports facts and is not investment advice.
What Is Not Known
It is not known how far used-car prices will fall as new brands enter Brazil, or when borrowing costs will ease enough to cut the company’s interest bill. The company itself describes the macroeconomic outlook as uncertain.
It is also not known how much more fleet depreciation the company will book if resale values keep falling. The next quarterly results will show whether the 29.1% gain holds.
What Prediction Markets Say
On Polymarket, a prediction market, traders put an 88.5% chance on no change in Brazil’s central bank rate decision in December. The December market had US$64,046 traded across all outcomes at 2:44 a.m. Eastern Time on Saturday 7 November 2026, and it gives between 5% and 6% to a quarter-point cut.
Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Profit Did Localiza Make?
Localiza earned R$1,125 million (about US$204 million) in the third quarter of 2026. That is 29.1% more than adjusted profit a year earlier.
Why Was Last Year’s Profit Lower?
In 2025 the company booked a R$613 million (about US$111 million) charge linked to the Green IPI, a federal tax on manufactured goods. Reported profit then was R$258 million (about US$47 million).
How Much Debt Does Localiza Have?
Net debt, meaning borrowings minus cash, was R$33,063 million (about US$6.0 billion) on 30 September 2026. About R$24.7 billion (about US$4.5 billion) is fixed with swaps.
Did Localiza Pay Shareholders?
The board approved R$614.9 million (about US$112 million) in interest on equity, a shareholder payout. It applies to shareholders registered on 25 September 2026.
Sources: Localiza&Co, 3Q26 Earnings Release (investor relations), November 2026; Localiza&Co calendar of events (3Q26 release, 5 November 2026); RT market close of the Brazilian real, 6 November 2026 (R$5.5053 per US$); Polymarket market “Bank of Brazil decision in December?”, 7 November 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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