Movida Reverses Losses with R$72.7 Million Profit in Q4 2024, Sets Positive Trajectory for 2025

Movida Participações S.A. (MOVI3), the vehicle rental company belonging to Grupo Simpar (SIMH3), reported an adjusted net profit of R$72.7 million ($12.8 million) in the fourth quarter of 2024.

The company disclosed these results during its earnings conference call on March 21, 2025. The robust performance marks a significant turnaround. This follows the R$104.5 million ($18.3 million) loss recorded in the same period of 2023.

Movida’s EBITDA reached R$1.244 billion ($218.2 million) in Q4, reflecting a 40.1% increase compared to the previous year. The EBITDA margin expanded to 38.3%, growing by 2.7 percentage points year-over-year.

Total net revenue climbed 30.3% to R$3.248 billion ($569.8 million). Service revenue contributed R$1.791 billion ($314.2 million) while asset sales generated R$1.457 billion ($255.6 million).

The company’s full-year performance showed similar strength, with an adjusted net profit of R$305.1 million ($53.5 million) for 2024. This marks a reversal from the R$254.6 million ($44.7 million) loss in 2023.

Movida ended 2024 with a fleet of 268,000 vehicles, split between 122,000 in the rental segment and 146,000 in fleet management. The average daily rate in the rental segment increased by 20% to R$151, boosting the segment’s revenue by 19.8% to R$809 million ($141.9 million).

Movida’s Strong Performance and Strategic Adjustments

CEO Gustavo Moscatelli emphasized that the price increases did not reduce rental volumes. “Our pricing tools operate with high efficiency,” Moscatelli stated. He confirmed that the company will continue adjusting prices to match the high interest rate environment.

The fleet management division showed even stronger growth with a 48.5% revenue increase to R$943.4 million ($165.5 million). This segment now guarantees R$6.8 billion ($1.2 billion) in future contracted revenues, providing stable cash flow for the next three years.

Movida sold 21,916 used cars in Q4, representing a 27% increase from Q4 2023. The company closed the year with R$4.3 billion ($754.4 million) in cash reserves and improved its leverage ratio to 3.0 times.

The company has already reported strong results for early 2025, with net profit doubling to R$41 million ($7.2 million) in the first two months compared to the same period last year.

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