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Hertz(HTZ) - 2025 Q1 - Quarterly Results
HTZHertz(HTZ)2025-05-12 22:53

Financial Performance - Hertz reported total revenues of 1.813billionforQ12025,adecreaseof131.813 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 346million,animprovementof12346 million, an improvement of 12% compared to a loss of 392 million in Q1 2024[23] - Revenues for Q1 2025 were 1,813million,adecreaseof12.81,813 million, a decrease of 12.8% compared to 2,080 million in Q1 2024[35] - Net loss for Q1 2025 was 443million,comparedtoanetlossof443 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 1,813millioninQ12025from1,813 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 346million,comparedtoalossof346 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 325million,comparedtoalossof325 million, compared to a loss of 567 million in Q1 2024, indicating a significant improvement[47] - Cash flows from operating activities provided 251millioninQ12025,downfrom251 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,animprovementfrom(373) million, an improvement from (697) million in Q1 2024[57] - Adjusted free cash flow for Q1 2025 was (578)million,animprovementfrom(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 92million,supportedbycostcontrolinitiativesandfleetrotation[7]−TotalexpensesforQ12025were92 million, supported by cost control initiatives and fleet rotation[7] - Total expenses for Q1 2025 were 2,338 million, down from 2,661millioninQ12024,reflectingareductionof12.12,661 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]−Depreciationofrevenueearningvehiclesandleasecharges,netforQ12025was588[10] - Depreciation of revenue earning vehicles and lease charges, net for Q1 2025 was 535 million, down from 969millioninQ12024[62]−Totalinterestexpense,netforQ12025was969 million in Q1 2024[62] - Total interest expense, net for Q1 2025 was 129 million, a slight increase from 128millioninQ12024[56]VehicleandFleetMetrics−Hertz′saveragevehiclesdecreasedby8128 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 308inQ12024,reflectingimprovedcostmanagement[68]DebtandCashPosition−Thetotalcashandcashequivalents,alongwithrestrictedcash,decreasedto308 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 1,133millionasofDecember31,2024[37]−Totalassetsincreasedto1,133 million as of December 31, 2024[37] - Total assets increased to 22,047 million as of March 31, 2025, compared to 21,802millionattheendof2024[37]−Totaldebtroseto21,802 million at the end of 2024[37] - Total debt rose to 16,772 million in Q1 2025, up from 16,335millionattheendof2024,representinganincreaseof2.716,335 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 15,355millionasofDecember31,2024[60]−Thecompany’saccountspayableincreasedto15,355 million as of December 31, 2024[60] - The company’s accounts payable increased to 861 million in Q1 2025, up from 642millionattheendof2024,reflectingariseof34.1642 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 2,502millionattheendof2024[37]StrategicInitiatives−ThecompanyisontracktoachievepositiveAdjustedCorporateEBITDAbyQ32025[18]−Thecompanyextendedthematurityof2,502 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 300fasterthananticipated,nowforecastedforQ22025[7]RevenueGeneration−Totalrevenueperunitpermonthdecreasedto300 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 3,896inQ12024[62]−Totalrevenuepertransactionday(RPD)increasedto3,896 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]