Hertz Global (HTZ) Q2 2025 earnings summary

Executive summary

• Achieved first positive adjusted corporate EBITDA in nearly two years, with a $500 million year-over-year improvement, driven by disciplined execution, operational transformation, and cost control.

• Q2 2025 revenue declined 7% year-over-year to $2.19B–$2.2B, primarily due to a 6% smaller fleet and market pricing pressures.

• Net loss for Q2 2025 was $294M, a significant improvement from $865M in Q2 2024, reflecting lower depreciation and improved fleet economics.

• Vehicle utilization reached 83%, a 300 basis point improvement year-over-year, with nearly 80% of U.S. core rental fleet less than a year old.

• Ended the quarter with $1.45B in liquidity, including $503M in cash and $946M in available credit.

Financial highlights

• Adjusted corporate EBITDA was $1M, a turnaround from a $460M loss in the prior year, with margin improving to 0% from (20)%.

• Revenue per unit per month (RPU) was $1,400, down 2% year-over-year but up 11% sequentially.

• Depreciation per unit per month (DPU) dropped 58% year-over-year to $251, exceeding cost targets.

• Direct operating expense per transaction day was about $36, down year-over-year and sequentially.

• Average fleet size was 543K, down 6% year-over-year but up 7% sequentially.

Outlook and guidance

• Fleet size expected to remain about 6% below 2024 through year-end, with flexibility to adjust based on demand.

• Adjusted corporate EBITDA margin for Q3 projected in the mid to high single-digit range; first positive EPS since 2023 expected in Q3.

• Full-year EBITDA now expected to be slightly below breakeven, revised from slightly above.

• All Model Year 2025 fleet secured at pre-tariff pricing, supporting cost predictability.

• Long-term target remains $1B adjusted corporate EBITDA by 2027.