Hertz

Hertz (HTZ) Q1 2025 Earnings

Reported May 12, 2025 at 6:53 PM ET · SEC Source

Q1 25 EPS

$-1.12

MISS 14.62%

Est. $-0.98

Q1 25 Revenue

$1.81B

MISS 9.82%

Est. $2.01B

vs S&P Since Q1 25

-93.3%

TRAILING MARKET

HTZ -66.2% vs S&P +27.1%

Market Reaction

Did HTZ Beat Earnings? Q1 2025 Results

Hertz Global Holdings delivered a bruising first quarter, missing Wall Street on both the top and bottom lines and sending shares tumbling more than 20% as investors weighed a turnaround that remains very much in progress. The rental car giant posted… Read more Hertz Global Holdings delivered a bruising first quarter, missing Wall Street on both the top and bottom lines and sending shares tumbling more than 20% as investors weighed a turnaround that remains very much in progress. The rental car giant posted an adjusted loss of $1.12 per share, falling 14.62% short of the $-0.98 consensus estimate, while revenue of $1.81 billion trailed expectations by 9.82% and slid 12.8% year-over-year, as the company's deliberate decision to run a tighter fleet, shrinking capacity by roughly 8%, compressed the top line. The single most consequential development beneath those headline figures was a 45% plunge in vehicle depreciation expense, to $535 million from $969 million a year ago, as CEO Gil West's "Buy Right, Hold Right, Sell Right" fleet strategy begins to take hold; depreciation per unit per month fell 40% to $353, and management now expects to breach the sub-$300 target in Q2, ahead of schedule. With Adjusted Corporate EBITDA improving 43% to negative $325 million and positive EBITDA targeted by Q3 2025, the turnaround narrative remains intact even as near-term demand softness in corporate and government segments clouds the path forward.

Key Takeaways

  • Vehicle depreciation down 45% year-over-year due to 'Buy Right, Hold Right, Sell Right' fleet strategy
  • $92 million year-over-year improvement in direct operating expenses
  • Record quarter for retail vehicle sales including Hertz Car Sales
  • Vehicle utilization up 240 basis points year-over-year to 79%
  • Over 70% of core U.S. rental fleet is 12 months old or newer
  • Tariff-driven used car pricing dynamics benefiting residual values and DPU in March 2025
  • Net Promoter Scores improved by 11 points year-over-year
  • Loyalty enrollments up 11% year-over-year
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HTZ YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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HTZ Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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HTZ Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q2 25

“Our 'Back-to-Basics Roadmap' is working. Disciplined fleet management, revenue optimization, and rigorous cost control are driving meaningful results. In a dynamic environment shaped by tariffs and economic uncertainty, capitalizing on our fleet as our most dominant economic lever keeps us agile today and positions us to deliver long-term, sustainable value.”

— Gil West, Q1 2025 Earnings Press Release