Hertz Global (HTZ) Q4 2024 earnings summary

Executive summary

• 2024 was a year of transition and transformation, with a new leadership team, operational changes, and a Back-to-Basics roadmap focused on fleet, revenue, and cost management.

• Customer experience initiatives led to strong gains in net promoter scores and service recovery metrics.

• The company is executing a commercial strategy emphasizing capacity discipline and premium RPD business, with early signs of progress.

• Operational transformation is expected to be substantially complete by end of 2025.

• Completed a 30,000 EV fleet reduction as part of a broader fleet rotation strategy.

Financial highlights

• Q4 2024 revenue was $2.0 billion, down 7% year-over-year; full-year 2024 revenue was $9.0 billion, down 3% from 2023.

• Q4 2024 Adjusted Corporate EBITDA loss was $357 million, narrowing 7% year-over-year; full-year Adjusted Corporate EBITDA loss was $1.54 billion.

• Q4 2024 net loss was $479 million; full-year net loss was $2.9 billion.

• Liquidity at year-end 2024 was $1.8 billion, including $500+ million in cash and $1.2–1.3 billion available on the revolver.

• Adjusted Free Cash Flow for Q4 2024 was $(332)M; full-year was $(1,768)M.

Outlook and guidance

• Expect a seasonal EBITDA loss in Q1 2025, break-even in Q2, sizable profit in Q3, and a small profit in Q4, targeting a low single-digit EBITDA margin for the year.

• Fleet rotation and operational transformation to be substantially complete by end of 2025, targeting normalized depreciation per unit below $300.

• DOE plus SG&A unit cost projected to be flat to down year-over-year in 2025, even with a smaller fleet.

• The company targets RPU over $1,500 and DOE per transaction day in the low $30s.

• No specific quarterly financial targets provided due to ongoing 2024 cleanup, but directional guidance was given.