Financial Performance - Net income for the nine months ended September 30, 2025, was a loss of $139 million, a decline from a profit of $140 million in the same period of 2024[18]. - The company recorded a net income of $359 million for the period ending September 30, 2025, compared to a net income of $237 million for the same period in 2024, reflecting a year-over-year increase of approximately 51.5%[21]. - Total comprehensive income for the period ending September 30, 2025, was $341 million, compared to $260 million for the same period in 2024, indicating a growth of approximately 31.2%[21]. - The company reported a net loss before income taxes of $189 million for the nine months ended September 30, 2025, compared to a profit of $214 million in the same period of 2024[109]. - Net income attributable to Avis Budget Group, Inc. for the three months ended September 30, 2025, was $359 million, compared to $237 million for the same period in 2024, representing a 51.5% increase[49]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $10.22, up from $6.67 in 2024, reflecting a 53.5% increase[49]. Assets and Liabilities - Total assets increased to $32,518 million as of September 30, 2025, compared to $29,041 million at the end of 2024, reflecting a growth of approximately 8.5%[16]. - Long-term debt rose to $6,020 million as of September 30, 2025, from $5,373 million at the end of 2024, marking an increase of 12.0%[16]. - The company’s total liabilities, excluding liabilities under vehicle programs, increased to $12,303 million as of September 30, 2025, from $11,047 million at the end of 2024, an increase of approximately 11.4%[16]. - Total current assets as of September 30, 2025, amounted to $812 million, an increase from $662 million as of December 31, 2024, representing a 22.7% growth[50]. - Total assets under vehicle programs as of September 30, 2025, amounted to $21,738 million, compared to $19,373 million as of December 31, 2024, representing an increase of 12.2%[112]. Cash Flow and Investments - Net cash provided by operating activities was $2,859 million for the nine months ended September 30, 2025, compared to $2,746 million in 2024, indicating an increase of 4.1%[18]. - The company experienced a net cash used in investing activities of $4,654 million for the nine months ended September 30, 2025, compared to $2,696 million in 2024, indicating a substantial increase in cash outflow[19]. - The company reported a significant investment in vehicles amounting to $11,586 million for the nine months ended September 30, 2025, compared to $8,153 million in 2024, reflecting a 42.5% increase[19]. - Proceeds from long-term borrowings were $1,579 million for the nine months ended September 30, 2025, compared to $1,569 million in 2024, showing a modest increase[19]. Revenue and Earnings - Total revenues for the three months ended September 30, 2025, were $3,519 million, a slight increase from $3,480 million in the same period of 2024, while total revenues for the nine months ended September 30, 2025, were $8,988 million, down from $9,079 million in 2024[37]. - Lease revenues for the three months ended September 30, 2025, were $3,458 million, compared to $3,392 million in Q3 2024, and for the nine months ended September 30, 2025, lease revenues were $8,832 million, slightly down from $8,895 million in 2024[43]. - The Americas generated $2,621 million in revenues for Q3 2025, a decrease from $2,640 million in Q3 2024, while Europe, Middle East, and Africa revenues increased to $742 million from $689 million in the same period[37]. - The company recorded royalty fee revenue of approximately $61 million for Q3 2025, down from $88 million in Q3 2024, and $156 million for the nine months ended September 30, 2025, compared to $184 million in 2024[36]. Debt and Financing - As of September 30, 2025, the company had $2,000 million in committed corporate credit facilities, with $1,571 million available for borrowing[63]. - The company has approximately $757 million remaining in its stock repurchase authorization as of September 30, 2025, with no shares repurchased during the nine months ended September 30, 2025[83]. - The company had $4.0 billion of debt maturing within one year and $8.2 billion maturing between one and two years, indicating significant short-term obligations[69]. - The total capacity for debt due to Avis Budget Rental Car Funding was $16.2 billion, with outstanding borrowings of $14.9 billion, leaving an available capacity of $1.2 billion[71]. Other Comprehensive Income and Expenses - The company reported other comprehensive income (loss) of $(18) million for the period ending September 30, 2025, compared to $23 million for the same period in 2024[21]. - The company recorded a net current-period other comprehensive income (loss) of $(18) million for the three months ended September 30, 2025, compared to $23 million for the same period in 2024[87]. - The company expects to recognize approximately $16 million of gain currently recorded in accumulated other comprehensive income (loss) into earnings over the next 12 months[97]. - The company recorded stock-based compensation expense of $4 million ($3 million net of tax) for the three months ended September 30, 2025, compared to $1 million ($1 million net of tax) for the same period in 2024[92]. Legal and Regulatory Matters - The company is involved in various legal proceedings, with potential exposure estimated at up to $45 million in excess of amounts accrued as of September 30, 2025[80].

Financial Performance - Total company revenues increased by 1% to $3,519 million in 3Q 2025 compared to $3,480 million in 3Q 2024[8] - Rental days for the total company increased by 1% to 49,400 thousand in 3Q 2025 compared to 48,786 thousand in 3Q 2024[8] - Adjusted EBITDA for the total company increased by 11% to $559 million in 3Q 2025 compared to $503 million in 3Q 2024[8] - Americas revenues decreased by 1% to $2,621 million in 3Q 2025 compared to $2,640 million in 3Q 2024, but U S rental car revenue increased by 1%[9] - International revenues increased by 2% to $859 million in 3Q 2025 compared to $840 million in 3Q 2024, excluding exchange rate effects[10] Key Metrics - Revenue per day excluding exchange rate effects for the total company decreased by 1% to $7049 in 3Q 2025 compared to $7132 in 3Q 2024[8] - Per-unit fleet costs per month excluding exchange rate effects for the total company decreased by 18% to $299 in 3Q 2025 compared to $365 in 3Q 2024[8] - Vehicle utilization for the total company decreased slightly by 01 percentage points to 720% in 3Q 2025 compared to 721% in 3Q 2024[8] Liquidity and Outlook - Adjusted Free Cash Flow year-to-date was negative $517 million, impacted by over $1 billion in voluntary fleet contributions[11] - The company anticipates Adjusted EBITDA for FY 2025 to be at the low end of the previously stated $900 million - $1,000 million range[17] - Per-unit fleet costs per month for FY 2025 are expected to be approximately $310-$320, and around $300 in 4Q 2025[17, 18]

Core Viewpoint - Avis Budget Group reported strong financial results for the third quarter of 2025, exceeding market expectations in both earnings per share and revenue, indicating robust operational performance and investor confidence [1][2][3]. Financial Performance - The company achieved earnings per share (EPS) of $10.96, surpassing the estimated $8.11 and significantly up from the previous year's EPS of $6.65, marking a 24.66% surprise [3][6]. - Revenue for the third quarter reached $3.52 billion, exceeding the estimated $3.44 billion and representing a 1.1% increase year over year [2][6]. - Net income increased by 52% year over year, totaling $360 million, reflecting effective cost management [4]. Market Reaction - Following the earnings announcement, Avis Budget Group's stock price rose approximately 4.4%, with an initial surge of 8%, indicating strong investor optimism [4][6]. Valuation Metrics - The company has a price-to-sales ratio of 0.47 and an enterprise value to sales ratio of 1.17, providing insights into its valuation [5]. - However, the company faces challenges with a debt-to-equity ratio of -3.17 and a current ratio of 0.77, suggesting potential liquidity issues [5].

Financial Performance - For the quarter ended September 2025, Avis Budget Group reported revenue of $3.52 billion, reflecting a 1.1% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $10.11, compared to $6.65 in the same quarter last year, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.48 billion by 1.1%, while the EPS surprise was +24.66% against the consensus estimate of $8.11 [1] Key Metrics - In the Americas, per-unit fleet costs were $309 per month, lower than the estimated $343.5 [4] - Internationally, per-unit fleet costs were $285 per month, slightly below the estimated $290.8 [4] - Total rental days reached 49,400, surpassing the average estimate of 48,708.20 [4] - Geographic revenue for the International segment was $898 million, exceeding the average estimate of $843.11 million, with a year-over-year increase of 6.9% [4] - Revenue from the Americas was $2.62 billion, slightly below the average estimate of $2.64 billion, representing a year-over-year decline of 0.7% [4] Stock Performance - Shares of Avis Budget have returned -2.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Avis Budget Group reported quarterly earnings of $10.11 per share, exceeding the Zacks Consensus Estimate of $8.11 per share, and showing a significant increase from $6.65 per share a year ago, resulting in an earnings surprise of +24.66% [1] - The company generated revenues of $3.52 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.10% and showing a slight increase from $3.48 billion year-over-year [2] - Avis Budget shares have appreciated approximately 94.8% year-to-date, significantly outperforming the S&P 500's gain of 15.5% [3] Earnings Outlook - The future performance of Avis Budget's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [4][5] - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $2.75 billion, while the estimate for the current fiscal year is -$4.55 on revenues of $11.7 billion [7] Industry Context - The Transportation - Services industry, to which Avis Budget belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Avis Budget's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Avis Budget Group reported a significant earnings surprise with adjusted EPS of $10.11, exceeding consensus expectations of $8.12, and revenue of $3.52 billion, surpassing the estimate of $3.49 billion [2][13] - The stock initially surged by 8% post-earnings release but moderated to a 4.4% increase later [3] - The company achieved a 52% year-over-year increase in net income, reaching $360 million, and an 11% rise in adjusted EBITDA to $559 million [4][13] Financial Performance - Adjusted EPS: $10.11 (vs. $8.12 expected); beat by $1.99 [13] - Revenue: $3.52 billion (vs. $3.49 billion expected); beat by $30 million [13] - Net Income: $360 million (vs. $237 million Q3 2024); up 52% YoY [13] - Adjusted EBITDA: $559 million (vs. $503 million Q3 2024); up 11% YoY [13] Operational Insights - Revenue per day declined by 1% year over year, indicating pricing pressure despite a 1% increase in rental days [6][8] - The company has nearly $1 billion in available liquidity and $1.9 billion in fleet funding capacity, providing financial flexibility [5][13] Management Commentary - CEO Brian Choi expressed cautious optimism, noting the quarter marked meaningful progress but refrained from declaring victory or signaling aggressive expansion [9] - The management's focus is on sustaining profitability and managing costs effectively moving forward [8][11] Future Considerations - Investors are advised to monitor the upcoming earnings call for insights on Q4 demand and management's confidence in maintaining margins [10][11] - The analyst consensus target for the stock is $146.75, indicating caution despite the recent earnings beat [11]

Core Insights - Avis Budget Group, Inc. reported strong third-quarter earnings, exceeding both revenue and earnings estimates, indicating a positive trend in financial performance [1][2] Financial Performance - Quarterly earnings were $10.11 per share, surpassing the analyst estimate of $8.78 by 15.12% [1] - Quarterly revenue reached $3.51 billion, exceeding the Street estimate of $3.45 billion [1] Operational Highlights - The company experienced a return to revenue growth while continuing to invest in future innovations and customer experience [2] - Revenue per day, excluding exchange rate effects, decreased by 1%, while rental days increased by 1% compared to the third quarter of 2024 [4] - Adjusted EBITDA in the Americas was $398 million, up from $384 million year-over-year, driven by lower fleet costs and increased rental days [4] - Adjusted EBITDA in International was $190 million, compared to $139 million in the same period last year, supported by stronger revenue per day and lower fleet costs [4]

Financial Performance - Revenues for Q3 2025 were $3.5 billion, a 1% increase compared to Q3 2024[2] - Net income for Q3 2025 was $360 million, representing a 51% increase from $237 million in Q3 2024[17] - Adjusted EBITDA for Q3 2025 was $559 million, an 11% increase from $503 million in Q3 2024[17] - Total revenues for the nine months ended September 30, 2025, were $8.988 billion, a 1% decrease from $9.079 billion in the same period of 2024[17] - Net income for Q3 2025 was $360 million, compared to $238 million in Q3 2024, but the nine-month net income showed a loss of $139 million, down from a profit of $140 million in the same period last year[19] - Adjusted EBITDA for the nine months ended September 30, 2025, was $743 million, compared to $729 million in the same period of 2024[28] - Total revenue for the three months ended September 30, 2025, was $3,519 million, compared to $3,480 million for the same period in 2024, representing a 1.1% increase[33] - Total revenue for the nine months ended September 30, 2025, was $8,988 million, compared to $9,079 million for the same period in 2024, reflecting a 1.0% decrease[33] Operational Metrics - Adjusted EBITDA in the Americas was $398 million, up 4% from $384 million in the same period last year[6] - Adjusted EBITDA in International was $190 million, a 37% increase from $139 million in the same period last year[6] - Rental days increased by 1% compared to Q3 2024, while revenue per day decreased by 1%[6] - The average rental fleet increased by 3% to 546,293 vehicles in Q3 2025 from 531,261 in Q3 2024, while the average rental fleet for the nine months decreased by 1% to 511,261 from 514,809[21] - Vehicle utilization in the Americas was 71.3% in Q3 2025, slightly down from 71.5% in Q3 2024, but improved from 69.2% in the nine months ended September 30, 2024[21] - Vehicle utilization for the three months ended September 30, 2025, was 72.0%, slightly up from 72.1% in the same period of 2024[33] - Vehicle utilization for the nine months ended September 30, 2025, was 70.8%, an increase from 69.5% in the same period of 2024[33] Cash Flow and Liquidity - The liquidity position at the end of the quarter was nearly $1.0 billion, with an additional $1.9 billion of fleet funding capacity[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $2,859 million, while net cash used in investing activities totaled $4,654 million[24] - Adjusted Free Cash Flow for the nine months ended September 30, 2025, was a negative $517 million, reflecting significant cash outflows related to vehicle programs[29] Cost and Expenses - Interest expense related to corporate debt increased to $109 million in Q3 2025 from $95 million in Q3 2024, contributing to the overall financial performance[28] - The company reported a 20% reduction in per-unit fleet costs per month in the Americas, dropping to $309 in Q3 2025 from $384 in Q3 2024[21] - Per-unit fleet costs for the three months ended September 30, 2025, were $898, down from $1,096 in the same period of 2024, indicating a 18.0% decrease[33] - Vehicle depreciation and lease charges for the nine months ended September 30, 2025, totaled $1,979 million, down from $2,175 million in the same period of 2024, a decrease of 9.0%[33] Fleet and Locations - The company operates approximately 10,250 rental locations in around 180 countries worldwide[7] - Average rental fleet for the three months ended September 30, 2025, was 746,161 vehicles, compared to 735,841 vehicles in the same period of 2024[33] - Average rental fleet for the nine months ended September 30, 2025, was 692,057 vehicles, compared to 702,790 vehicles in the same period of 2024[33] Debt and Financing - The company amended its $1.1 billion floating rate term loan, extending its maturity date from August 2027 to July 2032[6]

Core Insights - Wall Street analysts expect Avis Budget Group (CAR) to report quarterly earnings of $8.11 per share, reflecting a year-over-year increase of 22% [1] - Revenues are projected to be $3.48 billion, which is a slight increase of 0.1% from the same quarter last year [1] - The consensus EPS estimate has been revised 68.9% higher in the last 30 days, indicating a significant reevaluation by analysts [1] Revenue Estimates - Analysts project 'Geographic Revenue - International' to reach $843.11 million, indicating a year-over-year change of +0.4% [4] - The estimated 'Geographic Revenue - Americas' is $2.64 billion, showing no change from the previous year [4] Cost Estimates - 'Americas - Per-Unit Fleet Costs per Month' is expected to be $343.5, down from $384.0 in the previous year [5] - 'International - Per-Unit Fleet Costs per Month' is estimated at $290.8, compared to $316.0 last year [5] Rental Days and Utilization - 'International - Rental Days' is projected at 13,445 days, down from 13,864 days reported last year [6] - 'Americas - Revenue per Day, excluding exchange rate effects' is expected to be $74.86, compared to $75.61 in the same quarter last year [6] - 'Americas - Vehicle Utilization' is estimated at 72.0%, up from 71.5% last year [7] - 'International - Vehicle Utilization' is expected to be 73.0%, down from 73.7% reported last year [7] Fleet Estimates - 'Americas - Average Rental Fleet' is projected to be 532,693, slightly up from 531,261 last year [8] - 'Total - Rental Days' is expected to be 48,708 days, down from 48,786 days last year [8] - 'International - Average Rental Fleet' is estimated at 200,342, down from 204,580 last year [8] - The consensus for 'Total - Average Rental Fleet' is 733,035, compared to 735,841 reported last year [9] Market Performance - Avis Budget shares have decreased by 4% in the past month, contrasting with a +1.1% change in the Zacks S&P 500 composite [9] - The company holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [10]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Avis Budget Group, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Avis Budget is expected to report quarterly earnings of $8.17 per share, reflecting a year-over-year increase of +22.9% [3]. - Revenue projections stand at $3.48 billion, indicating a slight increase of 0.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 68.95% higher in the last 30 days, indicating a significant reassessment by analysts [4]. - Despite the positive revision trend, the Most Accurate Estimate is lower than the consensus, resulting in an Earnings ESP of -3.88%, suggesting a bearish outlook [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [10]. - Avis Budget currently holds a Zacks Rank of 3, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Avis Budget was expected to post earnings of $2.02 per share but only achieved $0.10, resulting in a surprise of -95.05% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Avis Budget does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [17].