Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (VAMO3) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to Vamos video conference call to discuss the results for the second quarter of 2026. The Today, we have Mr. Christian Hahn, CEO; Jose Cezario, CFO and IR Officer; and Rodrigo Faria, [indiscernible], Non-Statutory Investor Relations Officer, who effective August 17, will become Vamos Interim CFO and IR Officer. This conference call is being recorded, and the replay will be available on the company's website ri.grupovamos.com.br. The presentation is already available for download in Portuguese and English. [Operator Instructions] Before moving on, we would like to let you know that any statements that may be made during this conference call regarding the company's business outlook, projections and operational or financial goals represent the beliefs and assumptions of Vamos management and are based on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions since they relate to future events and therefore, depend on circumstances that may or may not occur. General economic conditions, industry conditions and other operating factors may affect the company's future results and lead to results that will materially differ from those in the forward-looking statements. Now I will hand over to Mr. Christian Hahn, who will begin the presentation. Mr. Hahn?

Good morning, everyone. Welcome to our conference call for the second quarter 2026 earnings. I would like to thank Vamos Board of Directors and all our employees. I'm very pleased to be leading Vamos. I have more than 25 years' experience in the heavy asset segments, including trucks, buses, machinery and equipment. 8 of those years at Spark, where I started as Executive Officer of the Vamos truck dealerships. I'm responsible for expanding and developing the large heavy asset network in Brazil. Over the past year, I was at AUTOMOB where I was responsible for all the heavy vehicle dealerships. I take over as CEO of Vamos with a mission to execute and do simple things right continuing to expand and develop our business while pursuing value creation opportunities through sustainable growth. Always with integrity, transparency and a commitment to our customers, investors and partners. Joining me today is Rodrigo Faria, who is taking over as Interim CFO of the company and who many of you already know from his many years of involvement in our industry. I'll start the presentation on Slide 2. highlighting a few points about where Vamos stands today. We have an experienced leadership team. We have reorganized our executive structure with a focus on commercial operations and used asset teams. We continue to see resilient demand for the leasing of new assets across a diversified asset base, growing opportunities in used asset leasing through the Sempre Novo product with competitive pricing and the option for lease terms. The fork leasing market continues to expand with stronger demand for guarantee availability, cost predictability and services, contract extensions provide customers with a solution that offers better value for money. Our operations team handles asset preparation and maintenance, restoring assets and extending their useful lives for additional leasing cycles and a nationwide used asset network continuing to expand and also serving as a sales channel for our leasing business, sustainable growth with our own operating cash generation with increasing contribution from asset sales and growth in leasing EBITDA. In our consolidated results for the quarter, net in after 4 quarters returned to reach triple digits, reaching BRL 101 million, with sequential growth since the third quarter 25, resulting in a 100% increase over that period. We continue to reduce our inventory of both new and used assets, delivering a significant 30% reduction over the last 12 months. Together with improving our operations and recovery of profitability, we organically reduced debt by BRL 436 million, excluding dividend payments, and the BRL 600 million private capital increase completed at the end of May. Our leverage for covenant purposes also continued to decline, benefiting from decrease in LTM EBITDA. It was down 0.4x from June 25 and 0.2x from March of this year. reaching 3x in June 2026, a level that we had initially expected to reach organically only in December 2026, as disclosed in our guidance. Looking at our return rates in 2026, we reached levels above those reported over the last 12 months for ROIC, ROIC spread and Roy demonstrating that the inflection in these indicators is already underway. On Slide 3, we talk about leasing. Among the various improvements in our operating indicators, I would highlight fleet utilization of 89%, up 5.1 percentage points over the last 12 months. a strong contracted CapEx of BRL 1.6 billion, up 60% year-over-year. a sharp 37% reduction in delinquency and 48% reduction in the volume of repossessed or returned assets, proving that we are improving the quality of our customer base. EBITDA grew 11% with a margin of 88%, up 1.9 percentage points from 2Q '25. Used assets sales volume increased 30% in terms of units directly contributing to a 23% reduction in our used asset inventory and a 55% reduction in our total inventory of road equipment. These assets were heavily concentrated in the grain transportation sector which accounted for the vast majority of asset repossessions and returns in recent years. We also delivered another quarter of positive margins, which were even slightly higher than in recent quarters and we opened another company-owned used asset store in [indiscernible], bringing our total network to 23 stores across Brazil. Slide 5 shows the evolution of our fleet, both in terms of gross fixed assets and number of assets. as we have seen over the past few quarters, fleet expansion has slowed due to a lower need to purchase new assets, given the opportunities that redeploying these assets have provided us to extract greater value from our existing fleet. As a result, gross fixed assets increased 1.8% in 2Q '26 compared to 2Q '25, while the fleet decreased in terms of units by 2.5%. In terms of order of size of category, our truck fleet, which also includes tractor units and trailers has been the asset class with the largest reduction in units through asset sales used asset sales. At the same time, this was also the category that saw price increases in recent years due to the change from Euro 5 to Euro 6 trucks construction, mining and forestry equipment declined in both components, reflecting the current agribusiness cycle and our risk exposure to sugar and ethanol. Finally, I would like to draw your attention to the strong performance of our forklift segment with double-digit growth both in units and gross fixed assets. This reflects growing demand for this type of asset from intralogistics operations throughout Brazil. Another important point is that we have been further increasing our exposure to electric forklifts which have an average purchase price approximately 20% to 25% higher than combustion engine forklifts. However, they also have lower maintenance and energy costs. which often explains our customers' preference for them. Moving to the next slide and still talking about the strong performance of forklift leasing I would like to highlight that Vamos is the market leader with 6,600 assets, representing an investment of BRL 1.3 billion. This is an asset that commonly have longer lease terms averaging more than 5 years and potentially extending to as long as 10 years, which reduces the relevance of asset sale proceeds to IRR. This also means that forklift lease contracts require a greater maintenance service component, resulting in higher yields. Currently, forklift leasing revenue is growing faster than the company's overall leasing revenue, increasing its share of the total and consequently, further diversifying our leasing revenue. Slide 7 brings contracted CapEx, which totaled in 2Q 26, BRL 1.6 billion, up 59.6% from 2Q '25. As a result, in the first 6 months of the year, we reversed the year-over-year decline reported in the first quarter and delivered growth of 13.4%. The as our 2026 guidance. Lower demand from the sugar ethanol sector this year will be more than offset by diversified demand from other sectors with different seasonality and this is exactly what we saw in 2Q '26, which was marked by strong demand from the e-commerce sector driven by a customer that is one of the leaders in the segment. Excluding e-commerce, demand was well diversified across sectors. As for the reduction in IRR of contracted CapEx 2Q '26, it's primarily explained by the greater concentration among contracting customers and shorter contract terms. The same Prinova project in turn, continues to see strong demand, benefiting from the greater diversification of used assets available for leasing with contracted volume remained stable at the record level achieved in 1Q '26. The combination of contracts for these products and contract extensions resulted in used assets accounting for 27% of contracted CapEx into Q '26, below the record high of 44% reached in 1Q '26. This was due exclusively to the profile of new asset contracts from the retail and e-commerce sector this quarter. Excluding this sector, used assets would have accounted for 42% of contracted CapEx. Deployed CapEx into Q '26 totaled BRL 975 million, up 4.7% from 2Q 25. In the first half of the year, total deployed CapEx reached BRL 2 billion, down 10.1% from the same period in '25 as contracting activity in '26 was more concentrated in the second quarter whereas in 2025, it was more concentrated in the first quarter. In addition, the higher volume of new asset contracts naturally fires longer deployment periods. We, therefore, expect deployed CapEx to accelerate over the coming quarters as we receive the assets from the OEMs. Slide 8, we show the trend in asset repossessions and early returns. This quarter, the volume of repossessed assets declined sharply from 48.1% -- I'm sorry, 48.1% from 2Q '25 and 3.7% from 1Q '26, reaching the best level since 3Q '23. On an annualized basis, they represented 4.1% of average fleet loss gross assets, the lowest level since Q3 and now recorded 3 consecutive quarters below the 5.5% level reported for '25. In addition, the diversification of return assets continues to improve compared with the company's historical mix since 2023. This is important because it contributes to a better mix of used assets that can be either redeployed through the Sempre Novo product or sold through used assets. Regarding the sub what higher concentration in general freight transportation, it's important to note that the assets used in the sectors tend to be more standard, which also supports liquidity both for leasing and resale. Now on the final chart of this slide, the company continues to reduce delinquency levels, down 37% from 2Q '25 and 12.2% from 1Q 26 reaching 2.1% of leasing net revenue. The company has been taking a tougher approach with delinquent customers, acting more judiciously and quickly to repossess assets, something that is only possible with the expansion of our used assets structures and the development of the Sempre Novo product. This allows us to improve the quality of our customer base in addition to winning new contracts that undergo a more rigorous approval process. Now on Slide 9, we show that we also continue to reduce our inventory of idle assets, both new and used. This efficiency gain has been driven by both leasing and asset sales. In leading, we consumed BRL 739 million of inventory by deploying BRL 3.2 billion in assets while purchasing only BRL 2.5 billion. This is a direct result of the significant progress we're making, redeploying these assets and lower need to purchase new assets. In asset sales we consumed BRL 1 billion of inventory by selling BRL 2 billion through our expanded used asset structure while receiving only BRL 951 million in assets from contracts reaching maturity benefiting from the high volume of contract extensions. As a result, inventory consumption through leasing and asset sales totaled BRL 1.8 billion over the last 12 months, equivalent to 59% of June '25 balance and more than enough to fully absorb the BRL 1.6 billion Sempre Novo inventory balance we had at the time. Finally, repossessions and early returns added BRL 871 million to inventory. But as we have already discussed, this amount has been gradually declining. As a result of these flows, our total inventory balance stood at BRL 2.1 billion in June '26. The lowest level since 4Q '22 and 30% below compared to June '25, with a particularly notable 32% reduction in same renewal inventory. On Slide 10, we showed the reduction in new and used asset inventories and their respective average turnover periods. Looking only at new asset inventory in the upper chart, the balance reached BRL 327 million in June '26, the lowest level since 2020, with the shortest average inventory turnover period in our history, 1.6 months. looking only used assets in inventory in the chart below, the balance declined to BRL 1.8 billion, the lowest level since 3Q '24. This also contributed to an improvement in inventory turnover to 8 months based on the Sempre Novo deployment and asset sales volumes recorded in 2Q '26. On the next page, we provide a breakdown of use asset inventory by asset type. I will start by highlighting the size of the inventory in terms of units in June '25, it peaked at 8,492 with a particularly high concentration of trailers road equipment, which accounted for 44.1% of the total and then declined to 2.7% in a year. When we group the assets in 2 categories: trucks, tractors and trailers and the other group, machinery and equipment. We can see the significant mismatch that we had between the used asset factory mix in June '25 and our overall fleet meat, which was erected. The same happens when we analyze these inventories based on gross fixed asset values, as shown in the bottom of the slides. On Slide 12, we show the trends in fleet utilization and leased fixed assets. We closed 2Q '26 with a fleet utilization of 89%, the highest levels since 2020 and the fourth consecutive quarter of improvement with a cumulative increase of 5 percentage points over the period. This puts the company well on track to achieve its guidance of 90% by December as we still have 6 months remaining in the year to gain the additional 1 percentage point in utilization. In turn, leased gross fixed asset grew compared to 2Q '25, above the 2% growth in total gross fixed assets. On Page 13, we reinforced the tarification of our leasing revenue and the decline in concentration among the largest customers. From a sector standpoint, demand remains well distributed across several sectors of the economy, which has positively contributed to the continued dilution of sectors where we have greater exposure, such as sugar and ethanol. Looking at the tables in the center of the slide, specifically comparing June 2026 and June 2025. We see several sectors increasing the share of the company's revenue. including logistics, services, fuel transportation, retail and e-commerce, urban cleaning and others. At the same time, the chart on the right-hand side of the slide shows that our 100 largest customers are also accounting for a smaller share of revenue as we continue to add to new customers every day. This has directly contributed to diversified revenue growth and a record level of BRL 1.1 billion. Slide 14, we show financial results of our leasing business. In 2Q '26, net revenue from services reached a new record of BRL 1.1 billion, up 8.6% from 2Q '25, supported by higher fleet utilization a record lease fleet, higher marginal yields and contractual price adjustments. EBITDA from leasing services totaled BRL 957 million, up 11% from 2Q '25 driven by revenue growth and disciplined cost and expense control. Now EBITDA margin in Leasing Services, we reached 88% in 2Q '26, expanding 1.9 percentage points from 2Q '25 and remaining stable compared to 1Q '26. Sequentially, EBITDA margin could have been higher where it not for the lower recognition of FINS tax credits resulting from the lower volume of asset purchases in 2Q '26. Now talking about fleet depreciation shown in the lower left chart we had stability in depreciation levels for both trucks and machine and equipment. As a result, the consolidated implied depreciation rates remained unchanged from 1Q '26 at 6.2% of total assets. I would like to highlight that when we look at 2Q '26 depreciation includes related expenses we are within our guidance for the year. Finally, services EBIT totaled BRL 666 million in 2Q '26, up 8.8% from 2Q '25 with an EBIT margin of 61.2%. Now moving on to Slide 15. I would like to highlight the double-digit growth we delivered in both the number of assets sold and used asset sales revenue. In terms of units sold, volume increased 30% compared to 2Q '25, outperforming the Brazil market for new trucks, buses and trailers based on published data from [indiscernible] as well as the Brazilian market for used trucks and buses according to Final over the same period. Sales revenue totaled BRL 358 million, up 10.6% from 2Q '25. For the first half of the year, revenue totaled BRL 684 million. At the same time, there was yet another factor, a positive one in this case, that limited the potential for further acceleration of used asset sales. Strong demand for the redeployment of used assets, both through Sempre Novo and through a higher volume of contract extensions, big sectors together with fewer assets, repossessions and early returns have reduced the expected level of used asset inventory. Consequently, the need for stronger sales. Ultimately, the company's focus on increasing fleet utilization, whether through leasing or asset sales. As for sales margins, and we already discuss that, we continue to deliver positive margins with low volatility, which gives us comfort with the current pace of depreciation. In the final chart at the back right, we show the used asset sales mix. Now I'd like to highlight that trailers and tractor units combined accounted for 50% of our sales in 2Q '26, an increase of 9 percentage points compared with 2Q '25. I will now turn the call over to our CFO, Rodrigo Faria, who will provide further details on our consolidated financial results.

Good morning, everyone. Thank you, Chris, and welcome back hoe. I wish you every success in this new challenge. Slide 17, consolidated financial results. Consolidated net revenue increased 10.8% compared to 2Q '25, with growth across all segments, as already discussed. In the Industrial segment, 2026 has seen volume growth both in truck and trailer sales, adding BMB customization projects. Consolidated EBITDA reached a record of [indiscernible] in 2Q '26, up 8.4% from 2Q '25. EBIT, BRL 676 million, increase of BRL 5.7 million in the same period. In 2Q '26, net financial expenses totaled BRL 547 million, up 3% and 1.1% from 2Q '25 and 1Q '26. The line is impact to [indiscernible] long-term rate, which consists of IPCA inflation plus a fixed real interest rate based on a 5-year end TB government bonds an increase more than IPCA in 2Q '26. The higher expense more than offset the positive effects from lower net debt and leverage, as well as the 25 basis points reduction in the benchmark interest rate. As EBIT grew faster than net financial expenses, net income increased 22% compared to 2Q '25, reaching BRL 101 million, twice the amount reported in 3Q '25, which marked the inflection point in our earnings. Since then, we have delivered double-digit sequential growth for 3 consecutive quarters. Finally, I would like to highlight that the BRL 101 million in net income is already nearly in line with the level reported when Q '25, despite an average CDI rate, 1.4 percentage points higher, showing that the company can grow earnings without relying on lower interest rates. Slide 18, return metrics. LTM ROIC as of June '26 was 13.9% while after-tax cost of debt stood at 10.4%, like spread of 3.5 percentage points, ROI at 10.7%. 2Q '26 shows the highest utilization rate of the last 12 months and return so that the upward inflection has already begun. ROIC reached 14.4%, ROC spread was a positive percentage points and ROI 13.7%, considering normalized used asset margins, utilization is still at nice and an average CDI at 14.5%. Slide 19, cash generation and the change in net debt. The company generated BRL 436 million in operating cash as we increased fleet utilization, maintained disciplined costs over control over costs. Robust used asset sales, cap asset purchases low and reduced the leverage organically. However, it's important to say that with the increase in new asset purchases expected to meet the higher contracted CapEx in 2Q '26 cash payments for vehicle purchases will increase over the coming quarters. Those investments, however, we will also generate additional leasing cash as the assets are deployed. In addition, the company has been gradually reducing its receivables assignment balance, a process that was further accelerated by the BRL 596.6 million private capital increase. Slide 20, first chart, we continue to raise new funding and prepay debt in order to optimize our debt amortization schedule. We remain attentive to market opportunities that allow us to improve our debt maturity profile in '27 and '28. Leverage, we continue to reduce it consistently as net debt declines as it did this quarter, and EBITDA continues to grow. Our leverage for covenant purposes stood at 3x in June '26, the lowest level since 2021, in line with our strategy of gradual organic deleveraging combined with sustainable business growth. I would also like to highlight that as we continue to focus on reducing receivables assignments, the balance has already declined 38% from its peak in September '25. combined with the reduction in component net debt, this helped bring us have the leverage ratio down from 3.67x to 3.4x. Finally, the ratio of fleet value to net debt stood at 1.34x, an improvement compared to recent quarters. With that, I conclude my presentation and turn the call back to Christian.

Moving on to the final slide, I would like to reinforce what we have been saying for some quarters now. our earnings generation and deleveraging depends primarily on our execution and operating efficiency. This means being efficient in fleet utilization, increasing revenue per asset, controlling costs and expenses, increasing used asset sales and developing new products, all of which contribute to a lower need for net CapEx and allow us to deleverage naturally. We are confident that we entered the second half of the year in an even stronger operating position than in the beginning of the year. For that reason, we are once again reiterating our guidance. There is still a significant value to be extracted from our assets, and that is the #1 priority from all of us here. Thank you. And now we are going to open for your questions. We may begin.

[Operator Instructions] The first question comes from Guilherme Mendes from JPMorgan.

The first call with the company's new management, good luck, Christian, Rodrigo in your new roles and Cezario for your new challenges. I would like to understand the priorities of the new management, any changing strategy or it would just be continuity. And the second question about repossessions and early returns, we do see an improvement quarter-on-quarter. Could we give us some color for the first half of the third quarter?

Thank you, Guilherme, for your questions. The company was already at a very interesting pace. And our idea is to carry on with everything that was very well done in the company, doing more and better in terms of operational efficiency, Paying attention to costs, the management of our assets, the turnover of assets and accelerating deliveries either selling or leasing. That will improve our utilization rates and bring innovations, which is our objective from [indiscernible] in terms of different sales in short-term rentals, which is something that we are already doing 12, 24 months or even less a month, 6 months, daily rentals. This is something that is about to come true, and make our stores. We already have 23 stores in Brazil as a point of delivery and also for returns. So our vision is to deliver what we have in terms of plans, increase utilization rate, which is our main metric today to build revenue and deleverage the company.

Rodrigo here. In terms of repossessions and returns, we don't see anything different from what we saw in the second quarter. No updates to bring to the market right now. It's very early. So we are starting the month of August now. The second half of the year is still going to have high interest rates, which can be a challenge for the Brazilian economy. But in our portfolio, we are not seeing any problems in terms of deterioration of clients and payments that we should share with the market right now.

Our next question comes from Filipe Nielsen from Citi.

Again, I would like to wish you good luck to the new management. My questions are more focused on used assets. I would like to try and understand your mindset in terms of leasing for you to get to a utilization rate that is optimal at the end of the year considering the sale of assets and the leasing of used assets. How do you think this is going to progress in the second half of the year? So are you considered used assets that are not progressing as well? Because of the [indiscernible] Brazil program, as you mentioned in your release, or is it that you see a better return for the leasing of used assets and then perhaps it's not so good to sell at this point. And then I would like to know about sales terms and how they are behaving. And this is the first call with Christian. And given your experience, what are you seeing the company in the segment and how you think you can improve and bring new things to accelerate this avenue of used assets in Vamos.

Thanks, Filipe. It's a pleasure to talk to you. Well, Filipe, I'm going to start with your second and last question. We always say that we are here in a country plus main means of transportation is the highways. So a very important means of transportation in our country. That brings huge opportunities for the business in which we are inserted. Today, the penetration of our products, us and other leasing companies is still very small, 6%, 7% of what's sold in the country a year is for leasing. In mature markets, you're talking about 25%, 30%. Used assets, we have that from the transfer of vehicles. That's how we measure this market. you're talking about an annual 300,000 vehicles with very low penetration in the volume of leasing. So we see a huge avenue of growth for this type of product. And to answer your first question, this is the opportunity that we have of renting and leasing used assets at competitive prices, that can be deployed faster and they can be used in a new deployment, but also in contract extensions. In some countries, assets are used for 10 years. Here, we have the habit of using an asset for 6 -- 5, 6 years and then renew the fleet. But some assets could last with quality for longer periods. That does not mean that because of that, we are going to decrease the sale of used assets. We do have stores at 23 locations, another 4 to be opened within this year, and these are stores that are still not fully mature. So they have a lot to grow and exploring the market geographically in the country, and also on the quality of our assets, not only trucks, trailers, but we have the agriculture machinery mining, construction, intralogistics. So we are always going to explore used assets this way, either by sale, leasing or contract extensions. The idea is to enjoy all the avenues at different times. This is how we want to work with used assets.

And just to add to what Christian said, Filipe, we focus on utilization and why utilization because utilization is a summary of it all, either I generate cash by leasing and an asset [indiscernible] is idle. I have my financial cash cost, but I don't have the cash. And when I sell, I'm going to pay the debt for the purchase of this vehicle. So when you take a look at used assets, it's very important to see what we have in terms of inventory to sell. And following this reasoning, if you see what we delivered in the first half of both in used vehicles and extensions. And if you annualize the first half in terms of CapEx, you're going to see that we are even above guidance, which shows that we are receiving less assets from contract maturities as expected, and we are renting more used assets. That is the use of the fleet that could go to sale is somehow being redeployed and then we have a reduction of fleets to be sold. So if we had any problem in utilization that perhaps that would be a point for us to discuss, but not really, utilization is even better than expected for June, we just have 1 percentage point to reach our midpoint of our guidance, which is to 6 months. And for 4, 5 quarters, we are adding almost 1 percentage point every quarter. So a very good trend, and we still have other avenues, as Christian mentioned. So we have to look at all fronts together, but utilization rate is the most important thing.

Our next question comes from Andre Ferreira from Bradesco BBI.

Congratulations on [indiscernible] results. Welcome, Christian.And Cezario, Rodrigo, I wish you all the success. I have 2 questions on my side. First, a follow-up in terms of used assets. if the pace as of July is faster compared to the second quarter, past Move Brazil and also trucks with a margin of 9%. As you normalize the mix and you showed that this is improvement, do you think used truck margins is going to go up. And second, about the e-commerce contract. Just to confirm if in the percentage of revenue, the segment has less than 5% of consolidated, so there was a concentration in the contracting of services, but not in revenue. Is that correct?

Well, first of all, Andre, thanks for your question. Well, in July, we had a very good pace of sales is slightly above what we had in coming months. And we saw the Move Brazil effect in the past months, but it was a program that was very much used for new vehicles. Banks were offering for fleet owners and the amount was quickly occupied from the demand for new assets. It really did not affect used vehicles as much. And also the funds exhausted very soon. So now we are no longer talking about the program because it's used up all the resources. So we believe we are going to have a better movement. The third quarter is usually very strong for used assets, and we have the products, we have diversification, as you mentioned, and talking about margins the margin is not something that we tend to grow or increase. We want to depreciate the product at the right amount to be sold and close the cycle or even extend the contract whenever possible. So we don't want to increase margins to what we had 3, 4 years ago that were a bit off. The idea is to have the right depreciation and use our assets as well as possible.

And just to add to what Christian said, Andre, and thanks for your kind words. If you take a look at that, on Slide 11 of our presentation. We showed that our inventory of used assets dropped by 23%, but the inventory of equipment and trailers dropped by 55%. They have lower price, and you could not expect margins as good than trucks, for instance. One of the reasons is Euro 6 that they only got to the trucks and trailers. We didn't have Euro 6 for broad equipment. Therefore, the normalization of margins of these assets is going to be faster than for trucks. And the market of road equipment is hard. You see that from manufacturers and in fee, and we see that we are reducing inventory by almost half in 12 months. This is critical inventory because almost all comes from the grain transportation sector and these assets were dropping by 40% year-over-year until last year. This is a bit better because the crop is a little better, but that's one of the factors that explain not in full, but this margin fluctuation. We do not see a concern with depreciations and margins for us to make any specific movement [indiscernible] quarter is very similar to the first quarter. We might have some volatility according to the assets that are being purchased are sold but we are not -- this is not something that we are concerned about. Move Brazil program, it's very important to talk about that. We already talked to the market about that because Move Brazil people thought could cannibalize the sale of using. I don't believe this is true. We have different buyer profiles for used and new assets. What we felt with Move Brazil was a predisposal of potential buyers to wait a bit more to make a purchase decision because they would like to know if they would be awarded by the program. And many weren't some official data that we have shows that it was 98%, 99% consumed for new vehicles only. So those that waited to buy used assets through Move Brazil were not awarded, and the 2 phases of Move Brazil are now closed. They did not have the credit and now they are going to buy the used asset without the program. That did have an impact in the sales of May and June, a bit stronger. April was the best month of sales in the year. July already shows an improvement as we showed in our material and it's important to say that last year, the third quarter '25 accounted for 30% of the sales of the year. So for us to know what' '26 is going to be like. We have to wait for the third quarter.

Very clear. At the concentration, e-commerce, 5% of revenue, correct?

Yes. E-commerce, we broke out information on the presentation, we talk about revenue on Page 13. Here is retail e-commerce. It is the ninth largest sector, accounting for 4.8% of our revenues. The 37% that we announced is only for contracted CapEx for the second quarter. It is diluted in the year. But e-commerce does contribute to the company because the 4.8% will go up. When you see the mid-table -- the center table of the slide, some sectors are growing more than company revenue, logistics, first, services, fuel transportation, retail and e-commerce next. And you're talking about 12 months. So retail and e-commerce is growing 1.3 percentage points in share of revenue of the company and that will make these 4 sectors will dilute other sectors. And the sectors that are being diluted are not necessarily dropping revenue. They are just not growing as fast as other sectors. I'm diluting the 100 larger customers. So we are having demands from all sites for new and used assets. And if these potential customers fit what we understand in terms of credit risk right tier price, asset liquidity. And obviously, we are going to have the customer because it's going to be beneficial for the whole of the company.

Our next question comes from Alberto Valerio from UBS.

Congratulations for your new roles. Good luck. I'd like to ask a question about something that still concerns investors a bit. But before my question, it seems that we have been through the worst we see contracted CapEx going up. We see repossessions and returns going down, company balance sheet improving with the capital injection. So it seems that the worst has passed. We are at an inflection point, 2 points of concern still. First depreciation, I see in your IRR the assets that you sold, the depreciation. And you see the spread or the discount going up 20% to 24%, 7% last year. At what point should we stop at what speed? Second question, refinancing costs. How do you see Vamos pipeline for this year and next year? We are seeing some companies coming to market. The CDI spread going up more recently. So I would like to know how you consider that. If you had considered that, if your costs would go up and what are your financing costs?