Companies /Industrials

Avis Budget Group Inc

NASDAQ: CAR Rental & Leasing Services
$137.84
▼ $2.86 (−2.03%) today
Markets closed · 5:29am ET

Q1 2025 Earnings

Reported May 7, 2025, 4:02pm ET · SEC source
$-14.35
Miss −155.68%
EPS · est. $-5.61
$2.4B
Miss −2.50%
Revenue · est. $2.5B
+17.8%
Beating market
CAR vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%+8%May 7May 8report 4:02pm ETearnings+0.7%+4.8%
−4%0+4%+8%May 7May 8earnings+0.7%+4.8%
CAR +4.8%S&P 500 +0.7%
−4%0+4%+8%May 7May 8report 4:02pm ETearnings+1.1%+4.8%
−4%0+4%+8%May 7May 8earnings+1.1%+4.8%
CAR +4.8%NASDAQ +1.1%
−5%0+5%May 6May 15report 4:02pm ETearnings+5.2%+5.4%
−5%0+5%May 6May 15earnings+5.2%+5.4%
CAR +5.4%S&P 500 +5.2%
−5%0+5%May 6May 15report 4:02pm ETearnings+7.3%+5.4%
−5%0+5%May 6May 15earnings+7.3%+5.4%
CAR +5.4%NASDAQ +7.3%
+0.59%
Day of report
+3.01%
Next session
+4.53%
One week
+24.51%
30 days

S&P 500 over the same 30 days: +6.73%.

Did CAR Beat Earnings? Q1 2025 Results

Avis Budget Group delivered a deeply disappointing first quarter for 2025, posting a loss of $14.35 per diluted share against a consensus estimate of $5.61, a miss of 155.68%, as a $390 million non-cash fleet charge tied to accelerated vehicle disposals in the Americas segment overwhelmed the company's results. Revenue fell 4.7% year-over-year to $2.43 billion, also missing the $2.49 billion consensus by 2.50%, with softer rental days and weaker revenue per day weighing on both the Americas and International segments. The net loss widened sharply to $505 million from $114 million a year earlier, while Adjusted EBITDA swung to a loss of $93 million. On a more constructive note, vehicle utilization improved meaningfully, rising to 69.6% in the Americas and 69.0% internationally, as the company shrank its average fleet 5% to 631,375 vehicles. Management indicated the fleet charge should be the last of its kind, and with advanced reservations trending positively, the company expects improved vehicle costs sooner than previously anticipated, though executives acknowledged they will monitor demand closely amid ongoing macro uncertainty.

Key Takeaways
  • Record number of vehicle dispositions under accelerated fleet rotation strategy
  • Vehicle utilization improved 3.5 percentage points to 69.4% companywide
  • International segment narrowed Adjusted EBITDA loss driven by stronger pricing and lower fleet costs
  • Revenue per day declined 2% excluding exchange rate effects
  • Rental days declined 1% year-over-year
  • Per-unit fleet costs increased 10% to $351 per month companywide
  • Non-cash fleet charge of $390 million related to accelerated vehicle disposals in Americas

“We made substantial progress on our fleet rotation strategy during the first quarter, disposing of a record number of vehicles. These actions will allow us to realize improved vehicle costs sooner than we anticipated. We had a solid first quarter, coming in as expected given the calendar shifts. Advanced reservations continue to trend positively, and we will keep a close watch on demand trends while maintaining the ability to adjust our fleet accordingly.”

Avis Budget Group CEO, on the earnings call

Forward Guidance & Outlook

Management indicated they do not expect further charges related to the accelerated fleet rotation strategy. Advanced reservations continue to trend positively. The company stated it will keep a close watch on demand trends while maintaining the ability to adjust fleet accordingly. The fleet rotation is expected to allow the company to realize improved vehicle costs sooner than anticipated.

CAR YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$800.0M$1.6B$2.4B$2.6B$2.4BRevenue
$0$800.0M$1.6B$2.4BRevenue

CAR Revenue by Segment

Americas$1.9B−4.0%
International$523.0M−6.0%

CAR Revenue by Geography

Americas$1.9B−4.0%
Rest of World
International

Figures from SEC filings and company reports. Not investment advice.