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Jun 30
Hertz Q2 2025 Earnings Report
Hertz reported its second quarter 2025 earnings, showing significant improvements in net income and Adjusted Corporate EBITDA, driven by disciplined fleet management, operational efficiency, and rigorous cost management.
Key Takeaways
Hertz Global Holdings, Inc. achieved its best quarterly results in nearly two years, with net income and Adjusted Corporate EBITDA improving by approximately $0.5 billion year-over-year. The company reported its first quarter of positive Adjusted Corporate EBITDA in almost two years, demonstrating the effectiveness of its 'Buy Right, Hold Right, Sell Right' strategy, improved vehicle utilization, and disciplined cost control.
Net income and Adjusted Corporate EBITDA improved by approximately $0.5 billion year-over-year, marking the first quarter of positive Adjusted Corporate EBITDA in nearly two years.
Depreciation per unit per month (DPU) reached $251, exceeding the North Star target of sub $300 by 16%, with all Model Year 2025 fleet secured at pre-tariff pricing.
Vehicle Utilization increased to 83%, a 300 basis point year-over-year improvement, due to enhanced fleet optimization and nearly 80% of the core U.S. rental fleet being less than a year old.
Direct operating expenses (DOE) declined 3% year-over-year, and the global Net Promoter Score improved by 11 points, reflecting strong cost control and commitment to service excellence.
Hertz
Hertz
Hertz Revenue by Geographic Location
Revenue by Geographic Location
Americas RAC Revenue
CapyFin.com Forward Guidance
The earnings report highlights a positive trajectory for Hertz, emphasizing the success of its strategic initiatives and operational improvements. While specific forward-looking financial guidance is not provided in this excerpt, the company's statements suggest continued focus on fleet management, cost control, and customer experience.
Positive Outlook
- Continued success of the 'Buy Right, Hold Right, Sell Right' strategy, securing Model Year 2025 fleet at pre-tariff pricing.
- Ongoing improvements in vehicle utilization through precise fleet optimization and agility.
- Sustained disciplined cost control, as evidenced by declining direct operating expenses.
- Commitment to service excellence and digital innovation, leading to improved customer satisfaction.
- Building a stronger, more resilient Hertz that is operationally sound and financially disciplined.
Challenges Ahead
- Potential for residual values of non-program vehicles to decline suddenly or unexpectedly.
- Challenges in purchasing adequate supplies of competitively priced vehicles due to global supply chain disruptions.
- Risks associated with the age of the fleet impacting carrying costs and vehicle sales prices.
- Volatility in travel demand, particularly business and leisure travel, in the U.S. and global markets.
- Exposure to uninsured liabilities and potential adverse changes in laws, regulations, or government policies.