Hertz Global (HTZ) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.8–$1.81 billion, down 13% year-over-year, driven by lower volume and pricing, with transaction days and average fleet both down 8%.

• Adjusted Corporate EBITDA loss improved 43% year-over-year to $(325) million, mainly due to lower vehicle depreciation and cost controls.

• Net loss for Q1 2025 was $443 million, compared to $186 million in Q1 2024, reflecting lower revenues and higher non-vehicle interest expense.

• Over 70% of the U.S. rental fleet is now 12 months old or newer, supporting lower costs and improved operational flexibility.

• Cost control, disciplined fleet management, and revenue optimization remain strategic priorities.

Financial highlights

• Adjusted Corporate EBITDA loss improved by $242 million year-over-year, with margin up to (18)% from (27)% in Q1 2024.

• Depreciation per unit per month declined 40–45% year-over-year to $353, with expectations to fall below $300 in Q2.

• Direct operating expense per day down 4% sequentially and 1% year-over-year on a volume-adjusted basis.

• Revenue per unit per month was $1,264, down 3% year-over-year; vehicle utilization improved to 79%.

• Non-vehicle interest expense increased $51 million year-over-year due to higher debt levels and rates.

Outlook and guidance

• Q2 EBITDA expected to be approximately break-even; Q3 to deliver sizable profit and positive EPS, with Q4 also positive on EBITDA.

• Full-year EBITDA margin projected in the low single digits, consistent with prior expectations.

• North Star targets reaffirmed: DPU below $300, RPU above $1,500, DOE per day in the low 30s, aiming for $1 billion EBITDA by 2027.

• 2025 annual run-rate cost savings of over $300 million targeted for DOE and SG&A.

• Liquidity and cash flow are expected to fund operations and obligations for the next twelve months and beyond.