Avis Budget Group Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did CAR Beat Earnings? Q1 2026 Results
Avis Budget Group delivered a mixed first quarter for fiscal 2026, posting revenue of $2.53 billion, up 4.1% year over year and ahead of the $2.44 billion consensus estimate by 3.85%, while earnings per share of negative $8.01 fell short of the negative $7.50 consensus by 6.73%. The headline loss was driven partly by worsening Adjusted EBITDA, which deepened to a loss of $113 million from a loss of $93 million a year ago, even as the company's net loss narrowed sharply to $283 million from $505 million, aided by a dramatic drop in vehicle depreciation and lease charges to $664 million from $1.05 billion. Fleet discipline was the central theme, with the average rental fleet trimmed 2% year over year to roughly 619,700 vehicles and utilization reaching 70% across both segments. CEO Brian Choi pointed to improving pricing and stronger utilization as foundations for a more resilient business ahead, though the quarter also drew attention from a separate corporate governance storyline involving a major shareholder's large stock sales occurring amid elevated volatility in the company's shares.
- Revenue per day excluding exchange rate effects increased 3% in both Americas and International
- Vehicle utilization reached 70% for both segments, a first quarter record in over fifteen years
- Total company per-unit fleet costs flat at $351 per month excluding exchange rate effects
- Significant reduction in vehicle depreciation and lease charges from $1,055M to $664M year-over-year
- Adjusted free cash flow improved by more than $570 million versus Q1 2025
“We executed on the changes we outlined last quarter, and the first quarter reflects a meaningful inflection in our operating performance. With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year.”
Avis Budget Group CEO, on the earnings call
Forward Guidance & Outlook
CEO Brian Choi indicated the company sees clear momentum heading into the rest of the year, citing tighter fleet discipline, improving pricing, and stronger utilization as building blocks for a more resilient business. No specific quantitative guidance was provided.
CAR YoY Financials
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Figures from SEC filings and company reports. Not investment advice.