ARML3: quote, dividends and indicators for Armac

Armac is a Brazilian company specialized in multi-category heavy equipment rental and the provision of related services, with common shares traded on B3 under the ticker ARML3. Its origins go back to the solo activities of José Augusto Carvalho Aragão, who provided earthmoving services using yellow line machines, an endeavor that culminated in the formal founding of Armac Locação e Equipamentos Ltda. in 1994, together with his wife, Lúcia Rosa Pereira Aragão. During its first 15 years, the company maintained a regional focus, serving local clients in smaller-scale projects related to construction and infrastructure. Starting in 2009, the strategy began to prioritize the rental of heavy machinery and equipment, gradually transforming the direct earthmoving services business into a model based on making assets available to third parties.

Armac’s professionalization and expansion gained a new pace from 2013 onwards, with the entry of the youngest son of the founding couple, José Augusto Pereira Aragão, and, in 2014, of Fernando Pereira Aragão, after his experience in the financial market. The company revised its long-term strategy, repositioning itself in the equipment rental market with a focus on operational gains for clients and the offer of more complete logistics and industrial solutions. In 2020, the company was converted from a limited liability company into a privately held corporation and, in the same year, received an investment from Speed Fundo de Investimento em Participações Multiestratégia, managed by Gávea Investimentos, which came to hold a significant equity stake. Access to capital enabled accelerated investment in the fleet: the number of rental equipment units grew from 424 at the beginning of 2020 to 1,403 in March 2021, with a significant increase in the monthly CAPEX volume. In July 2021, Armac carried out its IPO on B3, going public and spreading the concept of asset sharing applied to machinery and equipment in the Brazilian market.

Armac’s business model is based on converting equipment ownership into rental services, with contracts that may include full maintenance, logistics, technical support and, when requested, operators. The company operates with a diversified proprietary fleet of yellow line machines, such as hydraulic excavators, wheel loaders, crawler tractors, backhoe loaders, motor graders, compactors and wheel tractors, in addition to support trucks, aerial work platforms, forklifts, telehandlers and generators. On December 31, 2025, the portfolio of rentable equipment totaled 12,587 assets. Operating revenue comes almost entirely from equipment rental and service provision, supplemented by the sale of used fixed assets, which serves to dispose of assets and renew the fleet. The company verticalizes the maintenance chain, internalizing parts and services to reduce costs, control lead times and ensure availability, with contracts that often establish availability SLAs above 95%, short maintenance times and quick machine replacement.

Armac’s services are organized into two main demand categories: “Continuous Operations” and “Simple Rentals”. In Continuous Operations, the company serves clients with a permanent need for equipment, such as fertilizer, agribusiness, mining, pulp and paper, and food and beverages, generally through long-term contracts of three to five years, often renewed. These contracts may include full maintenance, field operation and a commitment to high asset availability, with quick replacement in the event of failure. In Simple Rentals, the focus is on limited-duration projects, especially in infrastructure, such as road, rail, basic sanitation, renewable energy and urban infrastructure works, in an asset sharing model with no minimum rental term. This modality seeks to capture short-term demand, allowing the same equipment to be reallocated to different projects and segments, reducing fleet idleness and diluting demand risk.

Armac’s client base is fragmented and diversified by sector. In 2025, no individual client accounted for more than 10% of net revenue, which reduces concentration risk. The company mainly serves the agricultural logistics, agribusiness, fertilizer, mining, pulp and paper, food and beverage, transportation, general industry and infrastructure sectors, with a presence in 23 Brazilian states and the Federal District. The sales strategy combines a dedicated sales team and digital channels, with a distinct approach for each client profile. Large Continuous Operations contracts tend to involve competitive supplier selection processes in which operational solutions and execution capacity carry significant weight in addition to price. On the Simple Rentals front, Armac relies on active prospecting and online sales technologies to respond to more volatile and geographically dispersed demand. The market intelligence area monitors sectors and potential clients, producing analyses and materials tailored to the specific needs of each operation.

Armac’s recent history also includes relevant inorganic growth and financial restructuring. In 2021, the company acquired RCB, specialized in renting aerial work platforms under recurring contracts, and Bauko Movimentação, focused on electric and combustion forklifts under long-term contracts, both merged in 2022. These acquisitions expanded its presence in material handling and lifting equipment, increased scale and added long-term contracted backlog. In 2024, Armac acquired Terram Engenharia de Infraestrutura S.A., a company active in earthmoving works for large industrial facilities and logistics warehouses, adding a more complete infrastructure engineering service to its portfolio. In parallel, the company issued successive debentures and Agribusiness Receivables Certificates (CRA) to extend the debt profile, reduce financial costs and adjust its amortization schedule, while maintaining leverage considered conservative for the size of its operations.

Armac’s geographic presence is nationwide, with operations in virtually all regions of Brazil. The company structures its fleet and maintenance support in a decentralized way, with workshops, mechanic teams and service bases close to clients. From 2023 onwards, the used-equipment operation consolidated itself as one of the pillars of the model, with stores functioning as multipurpose hubs, combining the sale of used equipment, logistical support for maintenance and a base for short-term rentals in previously less-explored regions. Fleet management has become increasingly data-driven, both for decisions on extending useful life and for early renewal and divestment, seeking a balance between economic return and operational reliability.

In the regulatory environment, Armac is subject to a set of federal, state and municipal rules mainly related to transportation, machine operation and real estate use. Activities involving the rental of trucks and heavy equipment place the company in a regulatory context that involves the Ministry of Transport, the National Land Transport Agency (ANTT) and bodies such as the Federal Highway Police and the National Traffic Council (CONTRAN), responsible for regulating and overseeing land transport and compliance with traffic rules. The company also depends on operating permits, fire department licenses and compliance with zoning and land-use regulations in each municipality where it maintains facilities. From an environmental standpoint, operations are subject to licensing and oversight covering air emissions, effluents, use of water resources and solid waste management, with periodic renewal of permits and adoption of practices that minimize impacts.

On the corporate and governance side, going public on B3 under the ticker ARML3 led to the adoption of structures typical of listed companies, with professional management and recurring access to the capital markets through debentures and other debt instruments. The combination of an expanding fleet, asset sharing model, verticalized maintenance and sector diversification drove significant growth in rental revenue and EBITDA between 2017 and 2025. After a cycle of strong growth, 2025 marked a strategic inflection with more stringent capital allocation criteria, contract reviews and a focus on long-term economic profitability, reflecting management’s concern with balancing expansion with financial discipline and operational efficiency.