Hertz Q2 2023 Earnings Report
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
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income