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HERTZ GLOBAL HOLDINGS, INC (HTZ)·Q2 2025 Earnings Summary

Executive Summary

  • Hertz delivered its best results in nearly two years, posting positive Adjusted Corporate EBITDA of $1 million and a ~$0.5B YoY improvement, driven by sharply lower vehicle depreciation, higher utilization, and cost control .
  • Revenue of $2.185B modestly beat S&P Global consensus, and Adjusted EPS of -$0.34 beat consensus (-$0.41), reflecting operational progress despite pricing headwinds; GAAP diluted EPS was -$0.95 . Revenue/EPS vs consensus: $2.169B*/-0.41* → $2.185B/-0.34 *.
  • Management raised near-term specificity on guidance: expects Q3 2025 Adjusted EBITDA margin mid-high single digits and first positive EPS since 2023; Q4 slightly positive EBITDA margin; full-year EBITDA now “slightly below breakeven” vs prior “slightly above” given delayed pricing uplift .
  • Key catalysts: DPU at $251, below <$300 North Star; utilization to 83%; DOE per day ~$36; retail car sales strongest Q2 in five years; liquidity >$1.45B, with facility extensions bolstering flexibility .

What Went Well and What Went Wrong

What Went Well

  • DPU of $251 beat the < $300 target by 16%, supported by favorable MY2025 pricing and fleet rotation; gross DPU ~ $280 and expected to remain < $300 in H2 .
  • Utilization rose to 83% (+300 bps YoY), with ~80% of the core U.S. fleet < 1 year old, improving reliability and economics; retail vehicle sales hit a five-year Q2 high .
  • First quarter of positive Adjusted Corporate EBITDA in nearly two years, reflecting disciplined fleet and cost actions; DOE down 3% YoY, DOE per transaction day ~$36 and improving .
    • CEO: “Our transformation is taking hold… We’re building a stronger, more resilient Hertz” .

What Went Wrong

  • Revenue declined 7% YoY to $2.185B on smaller fleet (-6%) and RPD down 5% (mix-adjusted down ~2–3 pts); Americas revenue down 10% YoY .
  • Pricing uplift materialized later than expected; Q3/Q4 EBITDA levels revised modestly lower, pushing FY EBITDA to slightly below breakeven vs prior slightly above .
  • Non-vehicle interest expense remained elevated ($232M in Q2), contributing to a GAAP net loss of -$294M; net debt rose to $16.7B; corporate leverage still high .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD Billions)$2.040 $1.813 $2.185
GAAP Diluted EPS ($)-1.18 -1.44 -0.95
Adjusted Diluted EPS ($)-1.18 -1.12 -0.34
Net Income (Loss) Margin (%)(23)% (24)% (13)%
Adjusted Corporate EBITDA ($USD Millions)(357) (325) 1
Adjusted Corp EBITDA Margin (%)(18)% (18)% —%
Consensus vs ActualQ4 2024Q1 2025Q2 2025
Revenue Consensus Mean ($USD Billions)*$2.134$2.010$2.169
Revenue Actual ($USD Billions)$2.040 $1.813 $2.185
Primary EPS Consensus Mean ($)*-0.72-0.98-0.41
Adjusted Diluted EPS Actual ($)-1.18 -1.12 -0.34

S&P Global disclaimer: *Values retrieved from S&P Global.

Segment Breakdown (Q2 2025 vs Q2 2024):

SegmentRevenue ($USD Billions)Adjusted EBITDA ($USD Millions)Utilization (%)RPD ($)DPU ($/mo)
Americas RAC (Q2 2025)$1.738 42 83 56.08 248
Americas RAC (Q2 2024)$1.928 (403) 81 59.73 644
International RAC (Q2 2025)$0.447 42 81 53.93 261
International RAC (Q2 2024)$0.425 (6) 77 54.78 384

KPIs and Operating Metrics:

KPIQ4 2024Q1 2025Q2 2025
Vehicle Utilization (Global)79% 79% 83%
Total RPD (Global, $)57.10 53.38 55.65
Total RPU per Month (Global, $)1,376 1,264 1,400
DPU per Month (Global, $)422 353 251
DOE per Transaction Day ($)——~36
Liquidity ($USD Billions)1.133 (cash & restricted) 1.021 (cash & restricted) >1.45 (liquidity)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted Corporate EBITDAQ3 2025Positive by Q3 2025 Margin mid-high single digits; positive EPS in Q3 Raised specificity
Adjusted Corporate EBITDAQ4 2025Slightly positive margin (implied earlier) Slightly positive EBITDA margin Maintained
Full-Year Adjusted Corporate EBITDAFY 2025Slightly above breakeven (prior expectation) Slightly below breakeven Lowered
DPU (Depreciation per Unit)H2 2025Sustain < $300 by end of 2025 Gross DPU under $300 through year; net DPU near gross as fewer gains Pulled forward/clarified
Fleet Size2025Tight fleet into summer ~6% below 2024 through year-end, with flexibility Clarified
Revenue Mgmt PlatformQ3 2025Upgrade underway Next major upgrade end of Q3; aim for pricing uplift Timed milestone

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Pricing & Revenue ManagementFocus on maximizing RPU; pricing down YoY in 2024; planned system modernization Legacy RM system being replaced via Amadeus; upgrade at end of Q3; pricing uplift delayed but improving Execution underway; uplift later than expected
Fleet Rotation & DPUTarget DPU < $300 by end-2025; EV fleet reduction completed DPU $251; gross DPU < $300 expected in H2; MY2026 buys delayed but progressing Ahead of target; sustained improvements
Utilization & DemandUtilization improved YoY; tight fleet strategy Utilization 83%; forward U.S. leisure bookings ahead of capacity; demand improving in corporate/gov/inbound Strengthening
Supply Chain & TariffsTariff and supply chain risks highlighted MY2026 supply chain delays; pre-tariff MY2025 fleet secured; recall impacts ~2% of U.S. fleet in Q3 Navigating constraints
Retail Vehicle Sales & ChannelsRecord retail sales in Q1; retail emphasis Highest Q2 retail sales in five years; Cox partnership for digital sales & AI pricing; Rent2Buy conversion ~80% Scaling retail/disposition channels
Liquidity & Capital StructureLiquidity $1.8B YE 2024; RCF/extensions Liquidity ~$1.4–1.45B; extended RCF, ABS; flexibility for 2026 maturities; ATM optionality Strengthened access
Legal/RegulatoryBankruptcy-related reserves; risk disclosures Wells Fargo litigation timing aids liquidity; SCOTUS consideration Monitoring; liquidity effect temporarily positive

Management Commentary

  • CEO: “For the first time in seven quarters, Hertz delivered positive adjusted corporate EBITDA… We exceeded our North Star target for depreciation per unit… and had our highest fleet utilization in nearly two years” .
  • CFO: “Adjusted corporate EBITDA came in at a positive $1 million… DOE per transaction day of about $36 improved… We expect Q3 to show our first positive EPS since 2023” .
  • CCO: “We are several quarters into a multiyear partnership with Amadeus… our next major upgrade remains on track for deployment at the end of Q3” .

Q&A Highlights

  • Pricing trajectory and mix: Pricing was down mid-to-high single digits market-wide in Q2; Hertz’s RPD down ~5% but only ~2–3 pts after mix normalization; pricing improvement delayed but narrowing YoY; RM upgrade expected to be accretive .
  • Recalls: Minimal Q2 impact; ~2% of U.S. fleet on recall in Q3 with OEM fix/parts availability gating resolution; younger fleet reduces exposure .
  • Retail dispositions: Retail channels are most accretive; Cox partnership enabling full digital sales and AI pricing; focus on higher net retention value from vehicles sold .
  • Liquidity and debt: Company expects to be cash flow positive in H2; ample flexibility for 2026 maturity via cash generation, capital markets (ATM optionality), and refinancing .
  • Fleet size and DOE: Fleet maintained ~6% below 2024 through year-end to sustain unit economics; focus on off-airport/mobility channels; DOE target in low-$30s reiterated .

Estimates Context

  • Q2 2025: Revenue $2.185B beat S&P Global consensus of $2.169B*; Adjusted EPS -$0.34 beat -$0.41*; consensus had 7 estimates on both metrics *.
  • Q1 2025: Revenue $1.813B missed $2.010B*; Adjusted EPS -$1.12 missed -$0.98* *.
  • Q4 2024: Revenue $2.040B missed $2.134B*; Adjusted EPS -$1.18 missed -$0.72* *.
  • Forward: Management expects Q3 positive EPS and mid-high single digit Adjusted EBITDA margin; consensus implies improvement consistent with narrative . S&P Global disclaimer: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Fleet economics have inflected: DPU achieved $251 vs <$300 target; gross DPU expected < $300 through H2—durably supporting margin repair .
  • Near-term earnings cadence: Q3 poised for first positive EPS since 2023 with mid-high single digit Adjusted EBITDA margin; Q4 slightly positive margin—trade tactically around pricing momentum and RM upgrade go-live late Q3 .
  • Pricing upside delayed but improving: Expect gradual normalization as supply tightens (OEM delays, recalls) and Amadeus RM capabilities roll out; monitor RPD and RPU trajectory .
  • Mix shift and utilization underpin revenue durability: Utilization at 83% and retail dispositions scaling via Cox and Rent2Buy; watch continued channel diversification (off-airport, mobility) .
  • Balance sheet watchpoints: Elevated non-vehicle interest persists ($232M in Q2); liquidity >$1.45B with extended facilities; expect H2 cash generation and 2026 flexibility (ATM optionality) .
  • Estimate revisions likely: Post-beat on Q2, Street may raise H2 EPS/EBITDA modestly but reflect delayed pricing; full-year EBITDA “slightly below breakeven” guides downside vs prior .
  • Risk monitor: Pricing execution, recall resolution pace, tariff/supply chain on MY2026, and litigation timing (Wells Fargo) can sway cash and sentiment .
Sources: Q2 2025 press release and supplemental tables **[1657853_67cd5eff5de843e097e2a76c7afa1df9_0]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_1]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_8]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_11]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_13]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_18]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_19]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_22]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_23]** **[1657853_67cd5eff5de843e097e2a76c7afa1df9_24]**; Q2 2025 8-K and exhibits **[1657853_0001657853-25-000095_q22025earningsrelease.htm:1]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:5]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:7]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:8]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:9]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:11]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:13]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:14]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:16]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:17]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:18]** **[1657853_0001657853-25-000095_q22025earningsrelease.htm:19]**; Earnings call transcript **[1657853_2063015_1]** **[1657853_2063015_2]** **[1657853_2063015_4]** **[1657853_2063015_5]** **[1657853_2063015_6]** **[1657853_2063015_7]** **[1657853_2063015_10]** **[1657853_2063015_11]** **[1657853_2063015_12]** **[1657853_2063015_13]** **[1657853_2063015_14]** **[1657853_2063015_15]** **[1657853_2063015_17]**; Prior quarter references Q1 2025 **[1657853_0001657853-25-000059_q12025earningsrelease.htm:0]** **[1657853_0001657853-25-000059_q12025earningsrelease.htm:9]** **[1657853_0001657853-25-000059_q12025earningsrelease.htm:12]** **[1657853_0001657853-25-000059_q12025earningsrelease.htm:16]**; Q4 2024 **[1657853_0001657853-25-000011_q42024earningsrelease.htm:6]** **[1657853_0001657853-25-000011_q42024earningsrelease.htm:10]** **[1657853_0001657853-25-000011_q42024earningsrelease.htm:11]** **[1657853_0001657853-25-000011_q42024earningsrelease.htm:15]**; Financing press release (May 2025) **[1657853_20250509NY84650:0]**.