Daily Boarding: Copa 1Q26 review; Armac update & call highlights; ride-hailing credit lines

Research evidence excerpt

Daily Boarding: Copa 1Q26 review; Armac update & call highlights; ride-hailing credit lines

BZ rentals: government studying to launch credit lines for ride-hailing drivers

On May 12, Minister of the General Secretariat of the Presidency Guilherme Boulos

stated that the government could launch, in the coming days, credit lines aimed at

facilitating vehicle acquisition by ride-hailing and taxi drivers. According to the minister,

the initiative would likely follow a structure similar to the Move Brasil program (see: BZ

govt to extend credit line for trucks & buses), offering more favorable financing

conditions and reducing drivers' dependence on rented vehicles. We estimate that a two-

year rental contract of a new vehicle is currently ~13% cheaper than owning the same

vehicle and remains economically attractive even with financing rates as low as 15% (vs.

~13-14% in Move Brasil). We see a potential financing program for ride-hailing drivers

as potentially negative for car rental companies` (Localiza and Movida) RaC divisions.

We estimate RaC accounts for ~43% of Localiza's NPV. We maintain Buy on Localiza and

Neutral on Movida. See: Brazilian government studying to launch credit lines for ride-

hailing drivers

Exhibit 1: We rate as Buy: Localiza, Rumo, Motiva, Ecorodovias, Copa, Volaris, Marcopolo, Randon and GPS; as Neutral: WEG, Vamos and Movida; and

as Underperform: Armac, Hidrovias do Brasil, Mills, Fras-le, Iochpe and Tupy

Summary table of our coverage

Average

Market daily 2026 2027 Q-R-Q 2026 2027 2026 2027 Company Rating Price cap traded Dividend Dividend rating P/E P/E EV/EBITDA EV/EBITDA (US$mn) value Yield Yield

(US$mn)

Localiza 1 - Buy C-1-8 43.1 9,862 89.9 11.1x 8.4x 5.4x 4.9x 1.5% 2.4%

Movida 2 - Neutral C-2-8 9.9 946 15.3 8.0x 4.6x 3.7x 3.7x 3.1% 5.4%