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Jun 30, 2023
Hertz Q2 2023 Earnings Report
Hertz reported strong second quarter results driven by high demand and fleet utilization
Key Takeaways
Hertz Global Holdings, Inc. reported strong second quarter 2023 results with total revenues of $2.4 billion and a net income of $139 million. The company's focus on asset returns and investments in technology and electrification contributed to the positive performance.
Total revenues reached $2.4 billion.
GAAP net income was $139 million, representing a 6% margin, or $0.44 per diluted share.
Adjusted Corporate EBITDA was $347 million, with a 14% margin.
The company's liquidity position was $1.4 billion at June 30, 2023, which includes $682 million in unrestricted cash.
Hertz
Hertz
Hertz Revenue by Geographic Location
Revenue by Geographic Location
Americas RAC Revenue
CapyFin.com Forward Guidance
The report contains forward-looking statements regarding the company's future operations, strategies, and potential risks, cautioning that actual results could differ materially due to various factors.
Positive Outlook
- The Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including as a result of disruptions in the global supply chain
- The Company's ability to attract and retain effective frontline employees, senior management and other key employees
- Levels of travel demand, particularly business and leisure travel in the U.S. and in global markets
- The Company's ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly
- The Company's ability to implement its business strategy or strategic transactions, including its ability to implement plans to support a large-scale electric vehicle fleet, execute its rideshare strategy and to play a central role in the modern mobility ecosystem
Challenges Ahead
- Significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing
- Occurrences that disrupt rental activity during the Company's peak periods particularly in critical geographies
- The mix of vehicles in the Company's fleet, including but not limited to program and non-program vehicles, which can lead to increased exposure to residual risk upon disposition
- Increases in vehicle holding periods, which may result in additional maintenance costs and lower customer satisfaction
- Financial instability of the manufacturers of the Company's vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs