Hertz Global (HTZ) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue reached $8.5B, with Q4 revenue at $2.0B, nearly flat year-over-year despite a 3% smaller fleet and significant external headwinds totaling over $100M.

• Adjusted Corporate EBITDA improved by over $1B year-over-year to $(339)M for 2025, with Q4 Adjusted Corporate EBITDA at $(205)M, a $150M improvement year-over-year.

• Customer satisfaction surged nearly 50% year-over-year, with Net Promoter Score at record levels, reflecting gains in rental ease, fleet quality, and service reliability.

• Completed fleet rotation, secured 2026 model year vehicles at target prices and volumes, and achieved the lowest average fleet age in nearly a decade.

• Strategic fleet reduction and operational improvements enhanced asset efficiency and cost discipline.

Financial highlights

• Q4 2025 revenue: $2.0B, unchanged year-over-year, with RPD down ~1% and RPU at $1,334, down 2% year-over-year.

• Q4 Adjusted Corporate EBITDA: $(205)M, a 43% improvement from Q4 2024, but $100M below target due to vehicle carrying costs and non-cash depreciation charges.

• Full-year net DPU: $300 per month, with Q4 at $330, a 44% year-over-year improvement.

• Adjusted DOE per transaction day improved 6% year-over-year, reaching $36.39.

• Liquidity at year-end: ~$1.5B, with access to over $1B in additional enhancements.

Outlook and guidance

• Q1 2026 revenue expected to grow mid-single digits year-over-year, with fleet growth in low single digits and margin guidance of negative high single-digit to low double-digit range, a 600-800 basis point year-over-year improvement.

• Full-year 2026 Adjusted EBITDA margin guidance maintained at 3%-6%; targeting $1B Adjusted EBITDA in 2027.

• Residual values expected to normalize in 2026 after Q4's seasonal lows.

• Continued focus on cost management, operational excellence, and revenue diversification through off-airport and mobility business units.

• Positive trends in revenue and RPD continue into Q1 2026, with March bookings strong.