Avis Budget Group (CAR) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenue was $3.0–$3.039 billion, with net income of $4–$5 million and Adjusted EBITDA of $277 million, reflecting a 29% year-over-year increase in Adjusted EBITDA driven by improved fleet costs and utilization.

• For the six months ended June 30, 2025, revenue was $5.5 billion, net loss $501 million, and Adjusted EBITDA $184 million, with losses driven by accelerated fleet disposal costs.

• Strategic focus shifted to innovation and long-term growth, highlighted by the launch of Avis First (premium rental experience) and a multi-year partnership with Waymo for autonomous vehicle fleet management in Dallas.

• Americas segment saw robust leisure demand offsetting commercial softness, with Adjusted EBITDA up 18% in Q2 2025; International segment Adjusted EBITDA rose 71% on stronger pricing and cost control.

• CEO transition and new CFO appointment marked a shift in earnings call approach, emphasizing value-creating innovation.

Financial highlights

• Q2 2025 revenue was $3.0–$3.039 billion, nearly flat year-over-year; net income attributable to shareholders was $4–$5 million, down from $14 million in Q2 2024.

• Adjusted EBITDA for Q2 2025 was $277 million, up 29% year-over-year; YTD Adjusted EBITDA was $184 million, down 19% from prior year.

• Diluted EPS for Q2 2025 was $0.10, compared to $0.41 in Q2 2024.

• Per-unit fleet costs per month improved 13% year-over-year to $300 in Q2 2025.

• Vehicle utilization increased to 70.7% in Q2 2025.

Outlook and guidance

• FY 2025 Adjusted EBITDA expected in the range of $900 million–$1 billion, with per-unit fleet costs per month projected at $310–$320 for FY 2025 and $300 for Q4.

• Management is monitoring impacts from interest rates, inflation, vehicle costs, and travel demand, with ongoing macroeconomic and geopolitical uncertainties.

• No change to long-term earnings expectations; investments and partnerships are expected to be additive.

• Further restructuring expenses of ~$15 million and officer separation costs of ~$7 million expected in 2025.

• Emphasis on scaling structural advantages and leading in premium and autonomous offerings.