About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

DETROIT — Shares of Hertz Global plummeted Tuesday morning after the embattled rental car company reported disappointing first-quarter earnings and a $250 million stock offering.Hertz shares were off more than 20% during early morning trading before leveling to be off about 15% to 18% toward the end of the company's Tuesday morning quarterly earnings call that wrapped around 10:10 a.m. ET.Shares of the company were only off roughly 3% heading into the call, following the company's report that came out after ...

Hertz Global (HTZ) Q1 2025 Earnings Call May 13, 2025 09:00 AM ET Speaker0 Welcome to Hertz Global Holdings First Quarter twenty twenty five Earnings Call. Currently, all lines are in listen only mode. Following management's commentary, we will conduct a question and answer session. I would like to remind you that this morning's call is being recorded by the company. I would now like to turn the call over to our host, Johan Walensen, Vice President of Investor Relations. Please go ahead. Speaker1 Good morni ...

HERTZ GLOBAL HOLDINGS, INC. Q1 2025 EARNINGS PRESENTATION IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS Certain statements made within this presentation contain forward-looking statements. Forward-looking statements are not guarantees of future performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Any forward-looking information relayed in this presentation speaks only as of May 13, 2025, and Hertz Global Holdings, Inc. ("Hertz Global" or the "Compan ...

Group 1 - Hertz Global Holdings, Inc. reported $1.81 billion in revenue for the quarter ended March 2025, a year-over-year decline of 12.8% [1] - The EPS for the same period was -$1.12, an improvement from -$1.28 a year ago [1] - The reported revenue was below the Zacks Consensus Estimate of $2.02 billion, resulting in a surprise of -10.43% [1] Group 2 - Key metrics indicate that shares of Hertz Global have returned +72.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - In the Americas RAC segment, transaction days were 27,758, below the average estimate of 29,796 days [4] - The total revenue per day (RPD) for the Americas RAC was $53.68, compared to the average estimate of $56.69 [4] - The average number of vehicles in the Americas RAC was 413,381, lower than the estimated 425,709 [4] Group 4 - In the International RAC segment, depreciation per unit per month was $265, compared to the estimated $283.55 [4] - The total RPD for the International RAC was $52.07, below the average estimate of $55.53 [4] - The average number of vehicles in the International RAC was 91,343, slightly below the estimated 91,979 [4] Group 5 - Geographic revenue for the International RAC was $323 million, below the three-analyst average estimate of $349 million, representing a year-over-year change of -5.3% [4] - Geographic revenue for the Americas RAC was $1.49 billion, compared to the estimated $1.67 billion, reflecting a -14.3% change year-over-year [4]

Hertz Global Holdings, Inc. (HTZ) came out with a quarterly loss of $1.12 per share versus the Zacks Consensus Estimate of a loss of $1.08. This compares to loss of $1.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.70%. A quarter ago, it was expected that this company would post a loss of $0.72 per share when it actually produced a loss of $1.18, delivering a surprise of -63.89%.Over the last four quarters, the company ...

Financial Performance - Hertz reported total revenues of $1.813 billion for Q1 2025, a decrease of 13% compared to $2.080 billion in Q1 2024[23] - Adjusted net income for Q1 2025 was a loss of $346 million, an improvement of 12% compared to a loss of $392 million in Q1 2024[23] - Revenues for Q1 2025 were $1,813 million, a decrease of 12.8% compared to $2,080 million in Q1 2024[35] - Net loss for Q1 2025 was $443 million, compared to a net loss of $186 million in Q1 2024, indicating a worsening of 138%[35] - Total revenues for Hertz Global Holdings decreased to $1,813 million in Q1 2025 from $2,080 million in Q1 2024, representing a decline of approximately 12.8%[42] - Adjusted Net Income for Q1 2025 was a loss of $346 million, compared to a loss of $392 million in Q1 2024, showing an improvement of 11.7%[45] - Adjusted Corporate EBITDA for Q1 2025 was a loss of $325 million, compared to a loss of $567 million in Q1 2024, indicating a significant improvement[47] - Cash flows from operating activities provided $251 million in Q1 2025, down from $370 million in Q1 2024, a decrease of 32.2%[39] - Adjusted operating cash flow for Q1 2025 was $(373) million, an improvement from $(697) million in Q1 2024[57] - Adjusted free cash flow for Q1 2025 was $(578) million, an improvement from $(729) million in Q1 2024[57] Expenses and Cost Management - The company achieved a year-over-year improvement in direct operating expenses of $92 million, supported by cost control initiatives and fleet rotation[7] - Total expenses for Q1 2025 were $2,338 million, down from $2,661 million in Q1 2024, reflecting a reduction of 12.1%[35] - Vehicle depreciation decreased by 45% year-over-year, with depreciation per unit (DPU) for the quarter at $353, down from $588[10] - Depreciation of revenue earning vehicles and lease charges, net for Q1 2025 was $535 million, down from $969 million in Q1 2024[62] - Total interest expense, net for Q1 2025 was $129 million, a slight increase from $128 million in Q1 2024[56] Vehicle and Fleet Metrics - Hertz's average vehicles decreased by 8% year-over-year to 504,723, while average rentable vehicles decreased by 10% to 477,273[23] - Hertz's vehicle utilization increased by 240 basis points year-over-year to 79%[13] - The number of revenue earning vehicles increased to 13,139 units in Q1 2025, compared to 12,714 units in Q4 2024[37] - Average rentable vehicles decreased to 477,273 in Q1 2025 from 529,232 in Q1 2024[62] - Vehicle utilization improved to 75% in Q1 2025, up from 72% in Q1 2024, indicating better efficiency in fleet usage[68] - Depreciation per unit per month decreased by 14% to $265 in Q1 2025 from $308 in Q1 2024, reflecting improved cost management[68] Debt and Cash Position - The total cash and cash equivalents, along with restricted cash, decreased to $1,021 million from $1,133 million as of December 31, 2024[37] - Total assets increased to $22,047 million as of March 31, 2025, compared to $21,802 million at the end of 2024[37] - Total debt rose to $16,772 million in Q1 2025, up from $16,335 million at the end of 2024, representing an increase of 2.7%[37] - Net debt as of March 31, 2025, was $15,896 million, up from $15,355 million as of December 31, 2024[60] - The company’s accounts payable increased to $861 million in Q1 2025, up from $642 million at the end of 2024, reflecting a rise of 34.1%[37] - The company’s retained earnings showed an accumulated deficit of $2,945 million as of March 31, 2025, compared to a deficit of $2,502 million at the end of 2024[37] Strategic Initiatives - The company is on track to achieve positive Adjusted Corporate EBITDA by Q3 2025[18] - The company extended the maturity of $1.7 billion of its First Lien revolving credit facility to June 2028, enhancing its capital structure[19] - Hertz's retail vehicle sales reached a record high in Q1 2025, benefiting from tariff-driven pricing dynamics[12] - The company expects to achieve DPU below $300 faster than anticipated, now forecasted for Q2 2025[7] Revenue Generation - Total revenue per unit per month decreased to $3,792 in Q1 2025 from $3,896 in Q1 2024[62] - Total revenue per transaction day (RPD) increased to $52.07 in Q1 2025 from $51.89 in Q1 2024, indicating a stable pricing environment[68] - Average rentable vehicles decreased to 90,516 units in Q1 2025 from 95,409 units in Q1 2024, impacting overall revenue generation capacity[68]

"Our 'Back-to-Basics Roadmap' is working," said Gil West, Chief Executive Officer of Hertz. "Disciplined fleet management, revenue optimization, and rigorous cost control are driving meaningful results. In a dynamic environment shaped by tariffs and economic uncertainty, capitalizing on our fleet as our most dominant economic lever keeps us agile today and positions us to deliver long-term, sustainable value."Just a year ago, we were managing through an aging fleet and pressure on residual values. Today, th ...

Financial Performance - Total revenues for the three months ended March 31, 2025, were $1,813 million, a decrease of 12.8% compared to $2,080 million in the same period of 2024[17]. - Net loss for the first quarter of 2025 was $443 million, compared to a net loss of $186 million in the first quarter of 2024, reflecting a significant increase in losses[20]. - The company reported a total comprehensive loss of $428 million for the three months ended March 31, 2025, compared to a total comprehensive loss of $226 million in the same period of 2024[20]. - Net income for Q1 2025 was a loss of $443 million, compared to a loss of $186 million in Q1 2024, indicating a significant decline in profitability[25]. - Adjusted EBITDA for Hertz Global was $(325) million for Q1 2025, compared to $(567) million in Q1 2024, indicating an improvement in operational performance[150]. Assets and Liabilities - Total assets as of March 31, 2025, were $22,047 million, up from $21,802 million as of December 31, 2024, indicating a growth of 1.1%[15]. - Total debt increased to $16,772 million as of March 31, 2025, compared to $16,335 million at the end of 2024, representing a rise of 2.7%[15]. - Total liabilities rose to $22,126 million as of March 31, 2025, compared to $21,475 million at the end of 2024, an increase of 3.0%[30]. - The company’s retained earnings (accumulated deficit) decreased to $(2,945) million as of March 31, 2025, from $(2,502) million at the end of 2024, reflecting a worsening of the deficit[15]. - The accumulated deficit increased to $2,945 million as of March 31, 2025, compared to $2,502 million as of December 31, 2024, highlighting ongoing financial losses[22]. Cash Flow and Investments - Cash provided by operating activities in Q1 2025 was $251 million, down from $370 million in Q1 2024, reflecting a decrease in operational cash flow[25]. - Revenue earning vehicle expenditures in Q1 2025 totaled $2,847 million, an increase from $1,904 million in Q1 2024, highlighting increased investment in fleet[25]. - Net cash used in investing activities was $718 million in Q1 2025, slightly higher than $703 million in Q1 2024, showing continued capital expenditure[25]. - Net cash provided by financing activities in Q1 2025 was $346 million, a significant increase from $85 million in Q1 2024, suggesting improved financing conditions[27]. Operational Metrics - Direct vehicle and operating expenses for Q1 2025 were $1,274 million, down from $1,366 million in Q1 2024, showing a decrease of 6.7%[17]. - The Americas RAC segment generated revenues of $1,490 million in Q1 2025, down from $1,739 million in Q1 2024, reflecting a 14% decline[148]. - International RAC revenues were $323 million in Q1 2025, slightly down from $341 million in Q1 2024, a decrease of 5%[148]. - Vehicle utilization for the Americas RAC segment improved to 80% in Q1 2025, up from 77% in Q1 2024[193]. Debt and Interest - The company incurred interest expense of $267 million in Q1 2025, compared to $216 million in Q1 2024, an increase of 23.6%[33]. - The total non-vehicle debt increased to $5,746 million as of March 31, 2025, compared to $5,104 million as of December 31, 2024, representing a rise of approximately 12.5%[60]. - The total vehicle debt decreased to $11,026 million as of March 31, 2025, from $11,231 million as of December 31, 2024, showing a decline of approximately 1.83%[61]. Tax and Legal Matters - Hertz Global recorded a tax benefit of $82 million for the three months ended March 31, 2025, resulting in an effective tax rate of 16%, compared to a tax benefit of $395 million and an effective tax rate of 68% in the same period of 2024[93][94]. - As of March 31, 2025, the Company has accrued approximately $326 million for litigation, including $260 million on underlying claims and $66 million in pre-judgment interest[135]. - A class action complaint was filed against Hertz Global alleging violations of the Exchange Act, seeking unspecified damages for securities purchased between January 6, 2023, and April 24, 2024[139]. Segment Performance - The corporate segment reported a loss of $(70) million in Q1 2025, which is an increase from a loss of $(52) million in Q1 2024[150]. - Total revenues decreased by $267 million (13%) in Q1 2025 compared to Q1 2024, primarily due to lower volume and pricing in both the Americas RAC and International RAC segments[181]. - Selling, general and administrative expenses (SG&A) increased by $58 million (36%) in Q1 2025 compared to Q1 2024, primarily due to corporate operations[181][185].

Extends $1.665 Billion of Commitments Under Revolving Credit Facility, $2.860 Billion of Commitments Under HVF III U.S. Vehicle Variable Funding Notes, and €1.160 Billion Under European ABSESTERO, Fla., May 9, 2025 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today the successful extension of its First Lien RCF, HVF III U.S. Vehicle Variable Funding Notes, and European ABS strengthening the Company's financial foundation and enhancing strategic flexibility. With each o ...