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Hertz Posts Q2 Profit as Pricing Strength Fuels Turnaround

Stronger rental pricing and tighter unit economics produced revenue and EBITDA gains despite elevated vehicle recalls reducing available cars and earnings.

Overview

  • Hertz reported Thursday that second-quarter revenue rose 10% to $2.40 billion, adjusted corporate EBITDA improved to $81 million and GAAP net income was $64 million, marking a clear improvement from a year earlier.
  • The company said revenue per day rose 9% to $61.98 and revenue per unit climbed 8% as utilization improved to about 79%, signaling stronger pricing power and better operating spreads even with a slightly smaller fleet.
  • Management disclosed that roughly 15,000 vehicles were affected by recalls on average and estimated those disruptions reduced GAAP net income by about $27 million and lowered adjusted EBITDA by roughly $30 million during the quarter.
  • Hertz finished the quarter with about $984 million in liquidity and said recent exchangeable-note financings push pro forma liquidity above $1 billion, while management reaffirmed full‑year unit targets for revenue and depreciation and issued stronger near‑term EBITDA guidance.
  • Shares jumped hard this week after the results, driven in part by roughly 30% short interest in the stock, and the company stressed its broader transformation into fleet-management, used-vehicle retail and mobility services as the path to more durable profits.