Avis Budget Group(CAR) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenues were $2.7 billion, with a net loss of $856 million and Adjusted EBITDA of $5 million[1] - Full year revenues reached $11.7 billion, with a net loss of $995 million and Adjusted EBITDA of $748 million[1] - Revenues for Q4 2025 were $2,664 million, a decrease of 2% from $2,710 million in Q4 2024; total revenues for the year were $11,652 million, down 1% from $11,789 million in 2024[16] - Net loss attributable to Avis Budget Group, Inc. for Q4 2025 was $747 million, a 62% improvement compared to a loss of $1,958 million in Q4 2024; for the year, the net loss was $889 million, down 51% from $1,821 million in 2024[16] - Adjusted EBITDA for Q4 2025 was $5 million, compared to a loss of $101 million in Q4 2024; for the year, Adjusted EBITDA increased by 19% to $748 million from $628 million in 2024[16] - For the year ended December 31, 2025, Avis Budget Group reported a net loss of $995 million, compared to a net loss of $1,817 million in 2024, indicating a 45.3% improvement year-over-year[28] - Adjusted EBITDA for the year ended December 31, 2025, was $748 million, up from $628 million in 2024, reflecting a 19.2% increase[28] - The company experienced a total revenue of $11,652 million for the year ended December 31, 2025, compared to $11,789 million in 2024, representing a decrease of 1.2%[34] Operational Metrics - Adjusted EBITDA in the Americas improved to $1 million from a loss of $63 million year-over-year, driven by lower fleet costs[3] - International Adjusted EBITDA was $21 million, compared to a loss of $11 million in the same period last year, supported by stronger revenue per day[3] - Americas segment revenues decreased by 4% to $2,040 million in Q4 2025 from $2,117 million in Q4 2024; for the year, revenues were $8,900 million, down 2% from $9,111 million[16] - International segment revenues increased by 5% to $624 million in Q4 2025 from $593 million in Q4 2024; for the year, revenues rose by 3% to $2,752 million from $2,678 million[16] - Total vehicle utilization improved to 68.0% in Q4 2025 from 67.7% in Q4 2024; for the year, it was 70.1%, up from 69.1%[21] - Vehicle utilization for the year ended December 31, 2025, was 69.9%, slightly up from 68.7% in 2024, showing a 1.7% improvement[34] - Total rental days for the year ended December 31, 2025, were 175,121, compared to 175,705 in 2024, a decrease of 0.3%[34] Cash Flow and Liquidity - Liquidity position at the end of the quarter was approximately $818 million, with an additional $2.1 billion of fleet funding capacity[3] - Net cash provided by operating activities for the year ended December 31, 2025, was $3,296 million[24] - Adjusted Free Cash Flow for the year ended December 31, 2025, was $(698) million, reflecting significant capital expenditures and vehicle program costs[24] - Cash and cash equivalents at the end of the period were $618 million, down from $597 million at the beginning of the period[24] - Adjusted Free Cash Flow for the year ended December 31, 2025, was $(698) million, compared to $(1,817) million in 2024, indicating a significant reduction in cash outflow[29] Fleet Management - The company is focusing on tightening fleet discipline and enhancing customer experience to drive sustainable earnings growth[2] - Average rental fleet size decreased by 2% to 660,421 vehicles in Q4 2025 from 671,966 in Q4 2024; for the year, it was 684,148, down from 695,084[21] - Average rental fleet size for the year ended December 31, 2025, was 684,148 vehicles, down from 695,084 in 2024, a reduction of 1.6%[34] - The company incurred an impairment charge of approximately $518 million in 2025 related to the acceleration of the rotation of certain EV rental car vehicles[30] Market Conditions and Risks - Future performance may be impacted by competition, economic conditions, and changes in fleet costs among other factors[9] - Revenue per day, excluding exchange rate effects, decreased by 2%, and rental days were down 1% compared to Q4 2024[3] - Revenue per day (RPD) for the Americas segment was $68.80 for the year ended December 31, 2025, down from $70.94 in 2024, a decline of 3.0%[34] Financial Metrics Definitions - Adjusted Free Cash Flow is a key metric for measuring cash available for debt repayment, stock repurchase, dividends, and future growth investments[41] - Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed as a percentage of revenues[42] - Available Rental Days are defined as the Average Rental Fleet multiplied by the number of days in a given period[43] - Average Rental Fleet represents the average number of vehicles in the fleet during a specific time period[44] - Net Corporate Debt is calculated as corporate debt minus cash and cash equivalents[47] - Net Corporate Leverage is determined by dividing Net Corporate Debt by Adjusted EBITDA for the twelve months prior to the calculation date[48] - Total Net Debt Ratio is the total debt less cash and cash equivalents divided by Gross Adjusted EBITDA for the twelve months prior to the calculation date[49] - Per-Unit Fleet Costs include vehicle depreciation, lease charges, and gains or losses on vehicle sales, divided by the Average Rental Fleet[50] - Vehicle Utilization is calculated as Rental Days divided by Available Rental Days[53]