Avis Budget Group(US:CAR)2025-10-28 13:17Financial 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].