Avis Budget Group (CAR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $3.51 billion, up 1% year-over-year, marking the first increase in eight quarters, driven by higher volume and favorable currency impacts, despite a 1% decline in revenue per day.

• Net income for Q3 2025 was $359 million, a 51% increase from Q3 2024, with diluted EPS of $10.11.

• Adjusted EBITDA for Q3 2025 was $559 million, up 11% year-over-year, reflecting lower per-unit fleet costs and improved operational execution.

• Strategic focus remains on elevating customer experience, operational excellence, and disciplined cost management to drive sustainable growth.

• Launch and rapid expansion of premium services, such as Avis First, have shown strong customer satisfaction and margin potential.

Financial highlights

• Q3 2025 revenues increased by $39 million (1%) year-over-year; net income rose by $122 million (51%).

• Rental days grew 1% year-over-year in Q3 to 49.4 million, with average rental fleet up 1% to 746,161 vehicles.

• Revenue per day declined 1% to $70.49 in Q3, and vehicle utilization was stable at 72.0%.

• Adjusted free cash flow year-to-date was -$517 million, impacted by over $1 billion in voluntary fleet contributions.

• Available liquidity as of September 30th was nearly $1 billion, with $1.9 billion in additional ABS borrowing capacity.

Outlook and guidance

• 2025 Adjusted EBITDA is expected at the low end of the previously stated $900M–$1,000M range due to extended recall impacts and softer government/commercial demand.

• Modest improvement in Americas RPD anticipated for Q4, with stabilization trends observed over the past two years.

• Per-unit fleet costs per month are projected at $310–$320 for FY 2025, with Q4 expected around $300.

• Continued investment in customer experience, technology, and innovation, with a baseline EBITDA floor of $1 billion in a normalized environment.