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“This quarter’s results reflect the disciplined execution of our strategy and our consistent commercial strength,” said Gil West, Chief Executive Officer of Hertz. “Our performance demonstrates the progress we're making in transforming the business and delivering tangible operational improvements across the company. Revenue increased 10% year over year despite operating with a 1% smaller fleet, driven by our strongest second quarter RPD on record, excluding the extraordinary market conditions in 2022."
On the Company’s strategic priorities, West added: "To unlock long-term opportunities, we’re strengthening our core business while building a platform for growth across four strategic areas: Rent-a-Car, Service, Fleet, and Mobility. We are applying our commercial, operational, and fleet management capabilities across these areas to drive greater efficiency, establish diverse engines of growth, and create long-term value."
ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz," "Hertz Global," or the "Company") today reported results for its second quarter 2026.
Q2 2026 HIGHLIGHTS
Q2 SUMMARY
Hertz's second quarter results reflect continued progress in its transformation strategy, with disciplined commercial execution driving strong performance across the business. The Company delivered $2.4 billion in revenue, up 10% year over year. Continued commercial momentum drove RPU above both the Company's expectations and its North Star target, increasing 8% year over year despite elevated recalls. RPD increased 9%, which was Hertz's strongest second quarter RPD on record, excluding the pandemic peak in 2022. This performance was driven by the continued strength of Hertz’s commercial playbook and its ability to maintain strong supply discipline at airports, as well as a small incremental bonus from the World Cup. As a result of this continued momentum, backed by a more balanced industry supply-demand environment, Hertz’s full-year RPU is expected to trend above its North Star target of $1,500.
The Company produced Net DPU in line with its revised expectations at $302. Forward views on residual values remain stable, and through its disciplined fleet strategy, Hertz expects to achieve its Net DPU target of at or below $300 for the full year. The Company now holds its youngest fleet in a dozen years, with 94% of its U.S. core fleet now comprised of model year 2025 and 2026 vehicles, which Hertz expects will produce better economics than prior model year vehicles.
Adjusted DOE per Day was $37.49, which was slightly higher than the Company's expectations, driven primarily by higher revenue-related variable costs and higher expenses related to sale leaseback transactions. When normalizing for these factors and the Days impact of recalls, Adjusted DOE per Day improved approximately 2% year over year. As revenue increases, certain operating costs move in tandem, emphasizing the importance of the Company’s RPD-to-DOE per Day spread, which improved 17% year over year, marking the third consecutive quarter of year-over-year spread improvement.
Recall activity was approximately 300% higher year over year and continued to be a measurable headwind to the business, impacting an average of nearly 15,000 vehicles. The estimated year-over-year impact to GAAP Net Income was $27 million and Adjusted Corporate EBITDA was approximately $30 million. Despite that, the Company still produced a significant year-over-year increase in Adjusted Corporate EBITDA.
Hertz ended the quarter with $984 million of liquidity, which includes cash and cash equivalents and the available capacity under our revolving credit facility. This was in line with the Company's guidance of just under $1 billion. In June, the Company completed the issuance of Exchangeable First Lien Notes Due 2030 for a total of $350 million, which used capacity created through expiring revolving commitments as well as from term loan amortization. In addition, Hertz added an additional $30 million of notes in July as part of the exercising of the greenshoe, bringing the Company's pro forma liquidity post transaction to slightly over $1 billion.
PLATFORM FOR GROWTH
Hertz's transformation continues to focus on two complementary objectives: strengthening its core rental business while building a diversified platform for long-term growth. The Company's platform spans Rent-a-Car, Service, Fleet, and Mobility, each with unique potential to scale, and collectively benefiting from Hertz's operational, commercial, and fleet management capabilities.
During the second quarter, Hertz advanced several of its highest-priority platform initiatives. It has made great strides in shoring up its Rent-a-Car business. One of the greatest opportunities remains more effectively leveraging the power of the Hertz brand. The Company is focused on realizing the full potential of its franchise business and is evaluating near-term opportunities across its global footprint through both whitespace expansion and conversion activity.
In Fleet, building on its unique competitive advantage as one of the largest dealers in the country, the Company is exploring how to deepen existing relationships with the leading used car companies and establish new partnerships with best-in-class retailers. Hertz continued enhancing its direct retail channels via Hertz Car Sales by growing retail sales volumes, reducing reconditioning costs, and delivering strong F&I performance.
In Mobility, Hertz’s affiliated operating company, Oro, is gaining momentum. Through its driver-led managed fleet business, in which it maintains and operates vehicles for drivers supporting rideshare platforms, Oro is now active in four markets, and its drivers have logged over six million miles to date. This business validates Oro’s ability to deliver turnkey fleet solutions at scale today, while also creating a pathway to operating AV fleets at scale. Oro's first AV partnership with Uber's robotaxi program, supporting Lucid vehicles equipped with Nuro autonomous technology, is on track to begin operations later this year in the San Francisco Bay Area.
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its second quarter 2026 results will be held on August 6, 2026 at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s Investor Relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://events.q4inc.com/analyst/801751158?pwd=MrFxkOG4, and you will be provided with dial in details. Investors are encouraged to dial in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
ABOUT HERTZ
Hertz Global Holdings, Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with approximately 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe. The Company’s operating affiliate, Oro Mobility, provides integrated driver-led and autonomous fleet management solutions across a range of mobility segments. For more information about Hertz, visit www.hertz.com.
SUMMARY RESULTS | |||||||||
| Three Months Ended June 30, |
| % Change | ||||||
($ in millions, except earnings per share or where noted) |
| 2026 |
|
|
| 2025 |
|
| |
Hertz Global - Consolidated |
|
|
|
|
| ||||
Total revenues | $ | 2,396 |
|
| $ | 2,185 |
|
| 10% |
Net income (loss) | $ | 64 |
|
| $ | (294 | ) |
| NM |
Diluted earnings (loss) per share | $ | 0.05 |
|
| $ | (0.95 | ) |
| NM |
Net income (loss) margin |
| 3 | % |
|
| (13 | )% |
|
|
Adjusted net income (loss)(a) | $ | (47 | ) |
| $ | (91 | ) |
| 48% |
Adjusted diluted earnings (loss) per share(a) | $ | (0.11 | ) |
| $ | (0.29 | ) |
| 62% |
Adjusted Corporate EBITDA(a) | $ | 81 |
|
| $ | 18 |
|
| NM |
Adjusted Corporate EBITDA Margin(a) |
| 3 | % |
|
| 1 | % |
|
|
Average Vehicles (in whole units) |
| 539,118 |
|
|
| 544,962 |
|
| (1)% |
Average Rentable Vehicles (in whole units) |
| 517,835 |
|
|
| 513,671 |
|
| 1% |
Total Vehicle Utilization |
| 79 | % |
|
| 78 | % |
|
|
Operational Vehicle Utilization |
| 82 | % |
|
| 83 | % |
|
|
Transaction Days (in thousands) |
| 38,646 |
|
|
| 38,695 |
|
| —% |
Total RPD (in dollars)(b) | $ | 61.98 |
|
| $ | 56.89 |
|
| 9% |
Total RPU Per Month (in whole dollars)(b) | $ | 1,542 |
|
| $ | 1,429 |
|
| 8% |
Depreciation Per Unit Per Month (in whole dollars)(b) | $ | 302 |
|
| $ | 256 |
|
| 18% |
DOE per Transaction Day (in dollars) | $ | 37.62 |
|
| $ | 36.03 |
|
| 4% |
Adjusted DOE per Transaction Day (in dollars)(b)(c) | $ | 37.49 |
|
| $ | 36.13 |
|
| 4% |
|
|
|
|
|
| ||||
Americas RAC Segment |
|
|
|
|
| ||||
Total revenues | $ | 1,918 |
|
| $ | 1,738 |
|
| 10% |
Adjusted EBITDA | $ | 88 |
|
| $ | 43 |
|
| NM |
Adjusted EBITDA Margin |
| 5 | % |
|
| 2 | % |
|
|
Average Vehicles (in whole units) |
| 429,465 |
|
|
| 436,720 |
|
| (2)% |
Average Rentable Vehicles (in whole units) |
| 410,849 |
|
|
| 407,913 |
|
| 1% |
Total Vehicle Utilization |
| 79 | % |
|
| 78 | % |
|
|
Operational Vehicle Utilization |
| 83 | % |
|
| 83 | % |
|
|
Transaction Days (in thousands) |
| 30,895 |
|
|
| 30,935 |
|
| —% |
Total RPD (in dollars)(b) | $ | 62.11 |
|
| $ | 56.21 |
|
| 10% |
Total RPU Per Month (in whole dollars)(b) | $ | 1,557 |
|
| $ | 1,421 |
|
| 10% |
Depreciation Per Unit Per Month (in whole dollars)(b) | $ | 304 |
|
| $ | 248 |
|
| 22% |
DOE per Transaction Day (in dollars) | $ | 38.30 |
|
| $ | 36.59 |
|
| 5% |
Adjusted DOE per Transaction Day (in dollars)(b)(c) | $ | 38.13 |
|
| $ | 36.45 |
|
| 5% |
|
|
|
|
|
| ||||
International RAC Segment |
|
|
|
|
| ||||
Total revenues | $ | 478 |
|
| $ | 447 |
|
| 7% |
Adjusted EBITDA | $ | 47 |
|
| $ | 38 |
|
| 24% |
Adjusted EBITDA Margin |
| 10 | % |
|
| 9 | % |
|
|
Average Vehicles (in whole units) |
| 109,653 |
|
|
| 108,242 |
|
| 1% |
Average Rentable Vehicles (in whole units) |
| 106,986 |
|
|
| 105,758 |
|
| 1% |
Total Vehicle Utilization |
| 78 | % |
|
| 79 | % |
|
|
Operational Vehicle Utilization |
| 80 | % |
|
| 81 | % |
|
|
Transaction Days (in thousands) |
| 7,751 |
|
|
| 7,760 |
|
| —% |
Total RPD (in dollars)(b) | $ | 61.49 |
|
| $ | 59.63 |
|
| 3% |
Total RPU Per Month (in whole dollars)(b) | $ | 1,485 |
|
| $ | 1,458 |
|
| 2% |
Depreciation Per Unit Per Month (in whole dollars)(b) | $ | 294 |
|
| $ | 287 |
|
| 2% |
DOE per Transaction Day (in dollars) | $ | 34.82 |
|
| $ | 33.94 |
|
| 3% |
Adjusted DOE per Transaction Day (in dollars)(b)(c) | $ | 34.74 |
|
| $ | 34.92 |
|
| (1)% |
| NM = Not meaningful | ||
(a) | Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2026 and 2025. | |
(b) | Based on December 31, 2025 foreign exchange rates. | |
(c) | Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule V for 2026 and 2025. | |
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and the Company’s rationale regarding the importance and usefulness of non-GAAP measures for investors and management.
Effective in the first quarter of 2026, the Company revised its definition of Adjusted Net Income (Loss) and Adjusted Corporate EBITDA to adjust for realized (gains) losses from financial instruments, share-based compensation expense and foreign currency (gains) losses. The update was made in an effort to better reflect management's view of ongoing operations and operational performance. The presentation of the prior period has been recast to conform to the current period presentation.
Also effective in the first quarter of 2026, the Company changed its definition of Average Rentable Vehicles and Average Vehicles to use a daily average of vehicles as opposed to a simple average of vehicles at the beginning and end of a period, which the Company believes is a better, more accurate measure of its vehicles. The presentation of the prior period has been recast to conform to the current period presentation.
We have not reconciled Adjusted Corporate EBITDA for the quarter-ended September 30, 2026, the fiscal year ended December 31, 2026, or the fiscal year ended December 31, 2027 to GAAP net income or loss as a result of uncertainty regarding, and the potential variability of, reconciling items such as the change in fair value of Public Warrants, as this adjustment is directly impacted by unpredictable fluctuations in our stock price and the volume of warrants exercised during the period. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results calculated in accordance with GAAP.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this release, and in related comments by the Company's management, include “forward-looking statements.” Forward-looking statements are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, economic and industry conditions and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.
Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things.
Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Hertz Investor Relations:
investorrelations@hertz.com
Hertz Media Relations:
mediarelations@hertz.com
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