HERTZ GLOBAL HLDGS INC (NASDAQ:HTZ) Reports Strongest Quarterly Performance in Nearly Two Years Despite Net Loss

HERTZ GLOBAL HLDGS INC (NASDAQ:HTZ) reported its second-quarter 2025 results, marking its strongest quarterly performance in nearly two years. The company posted a net loss of $294 million, or $0.95 per share, compared to a net loss of $865 million, or $2.82 per share, in the prior-year quarter. On an adjusted basis, Hertz reported a loss of $0.34 per share, surpassing analyst expectations of a $0.41 loss. Revenue for the quarter came in at $2.185 billion, slightly below the consensus estimate of $2.188 billion but reflecting a $500 million year-over-year improvement in profitability.

Key Financial Highlights

• Adjusted Corporate EBITDA turned positive for the first time in nearly two years, reaching $1 million compared to a loss of $460 million in Q2 2024.
• Depreciation per unit per month (DPU) improved significantly to $251, beating the company’s target of sub-$300 by 16%.
• Vehicle utilization rose to 83%, up 300 basis points year-over-year, supported by a younger fleet—nearly 80% of the core U.S. rental fleet is less than a year old.
• Direct operating expenses (DOE) declined by 3% year-over-year, reflecting disciplined cost management.
• The company ended the quarter with $1.45 billion in liquidity, providing financial flexibility.

Market Reaction

Despite the earnings beat, Hertz shares have shown mixed performance in pre-market trading, rising approximately 16.2%, while the stock has declined 11.9% over the past week and 29.5% over the last two weeks. The positive pre-market movement suggests investor optimism around the company’s improved cost controls and fleet management, even as revenue slightly missed expectations.

Outlook vs. Analyst Estimates

Hertz did not provide explicit forward guidance in its earnings release. However, analysts currently estimate Q3 2025 revenue at $2.519 billion, representing a 29.4% year-over-year decline, while full-year 2025 sales are projected at $8.583 billion, down 1.5% from prior expectations. The lack of formal guidance does not necessarily indicate weakness but leaves room for interpretation as the company continues to execute its turnaround strategy.

Strategic Execution

Hertz’s "Buy Right, Hold Right, Sell Right" strategy has driven tangible improvements, including:

• Securing its Model Year 2025 fleet at pre-tariff pricing, mitigating cost pressures.
• Achieving its highest Q2 retail vehicle sales volume in five years, supported by strong demand for its Hertz Car Sales platform.
• Improving its Net Promoter Score (NPS) by 11 points, signaling better customer satisfaction.

Conclusion

Hertz’s Q2 results demonstrate progress in operational efficiency and cost discipline, though macroeconomic and competitive pressures remain. The market’s initial reaction appears cautiously optimistic, balancing the earnings beat against broader industry challenges.

For more detailed earnings estimates and historical performance, visit Hertz’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.