Hertz Global Holdings Inc (New)
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.73%.
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 an adjusted loss of $1.12 per share, falling 14.62% short of the $-0.9771 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.
- 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
“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.”
Hertz CEO, on the earnings call
Forward Guidance & Outlook
Hertz remains on track to achieve positive Adjusted Corporate EBITDA by Q3 2025. The company expects to reach sub-$300 depreciation per unit per month in Q2 2025, ahead of the original year-end target, with model year 2025 vehicles already achieving this level. Management sees moderating demand in corporate, government, and U.S. inbound segments amid macroeconomic uncertainty, while leisure forward bookings are up year-over-year. The company plans to enter the summer with a relatively tight fleet to leverage rising residual values. Hertz is making foundational revenue management system changes expected to be meaningfully margin-accretive, building out off-airport and mobility business units, increasing direct sales through owned websites, and expanding retail vehicle sales capacity. The company targets RPU above $1,500 and DOE per transaction day in the low $30s as part of its strategic objectives.
HTZ YoY Financials
HTZ Revenue by Segment
HTZ Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.