Localiza 2Q26 Earnings Preview: Robust Seminovos Sales Help Counterbalance Increased Depreciation

研报英文原文证据摘录

Localiza 2Q26 Earnings Preview: Robust Seminovos Sales Help Counterbalance Increased Depreciation

J P M O R G A N Latin America Equity Research

16 July 2026

Correction (See disclosures for details)

Localiza Overweight

RENT3.SA, RENT3 BZ

2Q26 Earnings Preview: Robust Seminovos Sales Help Price (15 Jul 26):R$40.35

Counterbalance Increased Depreciation Price Target (Dec-27):R$69.00

We expect Localiza (OW) to deliver decent 2Q results, supported by resilient Latin American Transportation

ACperformance in the rental segment and strong Seminovos sales (90.6k units), being Guilherme Mendes

partially offset by higher depreciation rates. We model net income of R$961 (55-11) 4950-4105

million (-3% vs. consensus), supported by adequate profitability across the board guilherme.g.mendes@jpmorgan.com

(we assume margins of 67.2% for RAC Brazil, 75.5% for GTF, and 2.6% for Julia Orsi

Seminovos). On the downside, we expect both RAC and GTF depreciation to (55-11) 4950 3351

accelerate by 2.5% q/q, reflecting a potentially more aggressive autos competition julia.orsi@jpmorgan.com

Banco J.P. Morgan S.A.

as Chinese OEMs continue to expand in Brazil. Reflecting slightly higher

depreciation and higher J.P. Morgan estimates for interest rates (average 2027 at

13.1%), we are revising our 2026 and 2027 net income estimates down by 2-5% Quarterly Forecasts (FYE Dec)

to R$4,246–5,077 million. Despite this backdrop, Localiza remains one of our top Adj. EPS (R$)

picks within Brazil Transportation, given its appealing valuation and consistent 2025A 2026E 2027E

earnings momentum, underpinned by positive operational trends. The company is Q1 0.78 1.13A

Q2 0.71 0.89

well-positioned to achieve the upper range of the ROIC spread at 7.0 p.p. in 2027. Q3 0.80 0.93