1. Hertz's fleet strategy improved vehicle depreciation by 45% year-over-year. 2. Company aims for sub $300 depreciation per unit by Q2 2025. 3. Adjusted Corporate EBITDA is on track for positive results by Q3 2025. 4. Hertz maintains $1.2 billion in corporate liquidity and a stable financial structure. 5. Retail vehicle sales achieved record levels amid favorable market conditions.
The restructuring and fleet efficiency improvements support better financial performance, akin to past turnarounds in similar firms.
The article emphasizes operational improvements and financial health, crucial for investor confidence in HTZ.
Immediate financial indicators suggest positive momentum, which can influence share prices in the next few quarters.
"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, thanks to swift and disciplined action, we've rotated into a newer, more efficient fleet that's resilient, cost-effective, and aligned with a rising residual environment. As an asset management business that buys, rents, and sells vehicles, disciplined execution across all three areas is key to unlocking stronger returns and strengthening our financial foundation."
ESTERO, Fla., May 12, 2025 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its first quarter 2025.
Hertz initiated a comprehensive strategic transformation one year ago under CEO Gil West. Under Mr. West's leadership and a newly appointed executive team, Hertz established its "Back-to-Basics Roadmap" anchored by three core financial pillars: fleet management, revenue optimization and cost efficiency. This strategic reset is significantly improving operational performance, establishing a stronger financial foundation, and positioning Hertz for long-term value creation.
The Company remains focused on its profitability initiatives; rotating its fleet, normalizing DPU, and improving its cost structure. Hertz's objectives remain unchanged: to achieve DPU below $300, revenue per unit ("RPU") above $1,500 and direct operating expense ("DOE") per transaction day in the low $30s.
The Company recognized the fleet as the most dominant economic lever and began a refresh in 2024, replacing older, less customer-preferred models with newer vehicles offering lower operating costs and improved depreciation performance. Hertz's approach is guided by its disciplined fleet strategy - "Buy Right, Hold Right, Sell Right". This approach prioritizes acquiring vehicles at favorable prices, aligning fleet composition with customer preferences, and maximizing residual values through retail channel sales, particularly the Company's own Hertz Car Sales.
Revenue was down year-over-year driven primarily by reduced fleet capacity. The Company continues to manage its fleet prudently, which was down 8% year-over-year in the first quarter. Given macro demand uncertainties, it is intentionally running a tighter fleet year-over-year while capitalizing on the strong residual value environment to accelerate the rotation of its remaining older vehicles.
In May 2025, the Company amended its First Lien Credit Agreement to extend the maturity date of $1.7 billion of commitments under its existing $2.0 billion First Lien RCF from June 2026 to March 2028, subject to a springing maturity date (as defined in the First Lien Credit Agreement), and to make certain other amendments to the First Lien Credit Agreement. Hertz will have access to up to $2.0 billion under the First Lien RCF until June 2026, and thereafter the aggregate amount of commitments under the First Lien RCF is $1.7 billion until March 2028, after giving effect to the amendment.
Hertz Global Holdings Inc. is one of the world's leading car rental and mobility solutions providers. Its subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the US, and the Hertz 24/7 car sharing business in Europe. For more information about Hertz, visit www.hertz.com.
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...