Hertz Global (NasdaqGS:HTZ) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsGil West - CEOJohann Rawlinson - VP of Investor RelationsSandeep Dube - CMOScott Haralson - EVP and CFOConference Call ParticipantsChris Stathoulopoulos - Senior Equity Research AnalystChris Woronka - Equity Research AnalystDan Levy - Senior Equity Research AnalystJohn Healy - Managing Director and Senior Research AnalystRyan Brinkman - Automotive Equity Research AnalystOperatorWelcome to the Hertz Global Hol ...

Hertz Global (NasdaqGS:HTZ) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsGil West - CEOJohann Rawlinson - VP of Investor RelationsSandeep Dube - CMOScott Haralson - EVP and CFOConference Call ParticipantsChris Stathoulopoulos - Senior Equity Research AnalystChris Woronka - Equity Research AnalystDan Levy - Senior Equity Research AnalystJohn Healy - Managing Director and Senior Research AnalystRyan Brinkman - Automotive Equity Research AnalystOperatorWelcome to the Hertz Global Hol ...

Hertz Global (NasdaqGS:HTZ) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Speaker6Welcome to the Hertz Global Holdings fourth quarter and full year 2025 earnings call. Currently, all lines are in listen-only mode. Following management's commentary, we will conduct a question and answer session. I would like to remind you that this morning's call is being recorded by the company. I would now like to turn the call over to our host, Rohan Rawlinson, Vice President of Investor Relations. Please go ahead.S ...

ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz," "Hertz Global," or the "Company") today reported results for its fourth quarter and full year 2025. Q4 AND FULL YEAR 2025 HIGHLIGHTS Transitory Q4 Headwinds A number of compounding external events impacted EBITDA in the fourth quarter by more than $100 million. This included a government shutdown coupled with FAA flight cancellations, multiple technology vendor outages, and a nearly 3 times higher than normal level of vehicle ...

Core Insights - Hertz is concluding its 2025 Gold Squad program at Newark Liberty International Airport, with plans to expand the program in 2026 [1][2][8] - The Gold Squad, consisting of trained Golden Retrievers, aims to provide comfort to travelers during the busy holiday season [3][5] - An increase in holiday travel is anticipated, with over 109 million Americans expected to travel, marking an increase of over two million from the previous year [3][8] Travel Trends - December 20 is projected to be the busiest rental car pick-up day nationwide [7] - Top 10 holiday rental hotspots include Orlando, Los Angeles, Atlanta, Miami, Phoenix, Newark, Dallas, Boston, Chicago, and Las Vegas [7] - Miami, Palm Springs, and Phoenix are experiencing the largest year-over-year increases in rental car demand [7] Hertz Services and Recommendations - Hertz encourages early reservations for better vehicle availability and selection [7] - Customers can add flight details to their reservations for monitoring delays [7] - Joining Hertz Gold Plus Rewards offers exclusive discounts and benefits [7] Company Overview - Hertz Global Holdings, Inc. is a leading car rental and mobility solutions provider with over 11,000 rental locations in 160 countries [9]

Financial Data and Key Metrics Changes - The company achieved $2.5 billion in revenue and delivered adjusted corporate EBITDA of $190 million, marking a $350 million year-over-year improvement and positive EPS for the first time in two years [5][28]. - The average fleet age is now under 12 months, with a record high utilization rate of 84%, the highest since 2018 [6][29]. - Direct operating expenses (DOE) per day improved both year-over-year and sequentially, while maintaining a sub-$350 DPU goal [7][29]. Business Line Data and Key Metrics Changes - Revenue per unit (RPU) came in at $1,530, nearly flat year-over-year, with record utilization driving performance despite a 7% smaller fleet [17][28]. - The company reported a 2% year-over-year improvement in RPU across the total fleet, with utilization across the total fleet improving by 460 basis points [18][29]. - The rent-to-buy program has a 70% purchase conversion rate, significantly exceeding traditional dealership rates [11]. Market Data and Key Metrics Changes - The international segment saw strong margins with larger RPD and RPU gains, indicating a robust pricing environment [28]. - Inbound demand remains down low single digits year-over-year, particularly affected by EMEA and Australia/New Zealand markets [66]. - Corporate demand showed improvement in October, indicating a positive trend moving into Q4 [64]. Company Strategy and Development Direction - The company is focused on transforming its rental car business while simultaneously laying the groundwork for a diversified, value-creating platform spanning rental car, fleet, service, and mobility [9][14]. - The strategy includes enhancing customer experience, optimizing fleet management, and leveraging e-commerce channels to drive sales [12][20]. - The company aims to grow its mobility business, including partnerships with rideshare companies and exploring autonomous vehicle opportunities [14][45]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for a stable setup in 2026, with expectations for mid-single-digit growth in transaction days and fleet size [33][36]. - The company anticipates challenges in Q4 due to government shutdown impacts and external system outages, which may affect revenue [32][68]. - Management emphasized the importance of execution and maintaining focus on core rental operations while expanding into new areas [39][45]. Other Important Information - The company ended the quarter with $2.2 billion in total liquidity, including $1.1 billion in unrestricted cash [30]. - The company completed a $425 million senior unsecured exchangeable note issuance, with plans to use part of the proceeds to redeem a $500 million bond maturing in December 2026 [30]. - The company is targeting a 3%-6% EBITDA margin for 2026, aiming for $1 billion in EBITDA production by 2027 [36]. Q&A Session Summary Question: Can you unpack what becoming a value-creating mobility platform means in practice? - Management highlighted that while the rental car business remains core, there are additional growth opportunities in car sales, service, and mobility, leveraging their existing infrastructure and customer base [41][42]. Question: Are the economics on a smaller vehicle footprint better despite potential RPD headwinds? - Management acknowledged RPD headwinds but emphasized the dynamic nature of vehicle mix optimization based on customer demand and market conditions [46][48]. Question: What are the expectations for DPU and fleet mix for next year? - Management indicated that the broader fleet strategy and stable residuals would support achieving sub-$300 DPU targets, with a focus on optimizing vehicle sales channels [54][55]. Question: Can you provide insights on international demand and market performance? - Management noted substantial improvement in airport demand and positive trends in corporate demand, although inbound demand remains slightly down year-over-year [62][64].

Core Insights - Hertz's "Back-to-Basics Roadmap" is effectively enhancing operational performance and establishing a stronger financial foundation, focusing on fleet management, revenue optimization, and cost efficiency [4][8][14] Financial Performance - In Q1 2025, total revenues decreased by 13% year-over-year to $1.813 billion, primarily due to reduced fleet capacity [21] - Net loss for Q1 2025 was $443 million, compared to a loss of $186 million in Q1 2024 [21] - Adjusted Corporate EBITDA improved to a loss of $325 million, a 43% year-over-year improvement [21][38] Fleet Management Strategy - Hertz has rotated into a newer, more efficient fleet, with over 70% of its core U.S. rental fleet being 12 months old or less [9][14] - Vehicle depreciation decreased by 45% year-over-year, with depreciation per unit (DPU) for Q1 2025 at $353, down from $588 [8][21] - The company aims to achieve a DPU below $300 by Q2 2025, ahead of its previous guidance [8][14] Revenue and Demand Environment - Revenue per unit (RPU) declined by 3% year-over-year to $1,264, influenced by seasonal factors and a shift in fleet mix [11][21] - Vehicle utilization increased by 240 basis points year-over-year to 79% [11][21] - Forward bookings for leisure rentals are up year-over-year, while demand for corporate and government segments has moderated [12] Cost Management - Direct operating expenses improved by $92 million year-over-year due to cost control initiatives [14][17] - The company is partnering with an AI-driven vehicle inspection system to enhance maintenance efficiency and customer experience [17] Recent Transactions and Financial Position - Hertz extended the maturity of $1.7 billion of its First Lien revolving credit facility to June 2028, improving its capital structure [19][20] - As of March 31, 2025, Hertz had $1.2 billion in corporate liquidity [14] Customer Experience and Loyalty - Net Promoter Scores improved by 11 points year-over-year, indicating enhanced customer satisfaction [16] - Loyalty enrollments increased by 11% year-over-year, contributing to a rise in loyalty bookings [16]

Financial Commitments - The company has successfully extended approximately $1.665 billion of commitments under its First Lien Revolving Credit Facility, $2.860 billion under HVF III U.S. Vehicle Variable Funding Notes, and €1.160 billion under European ABS [1][7] - The maturity date for the revolving credit facility has been extended from June 30, 2026, to March 31, 2028, allowing access to up to $2.0 billion until June 30, 2026, and $1.665 billion thereafter [7] - The commitment termination date for HVF III U.S. Vehicle Variable Funding Notes has been extended by one year to May 7, 2027, with a maximum principal amount available of $3.640 billion until April 10, 2026, and $2.860 billion thereafter [7] - The maturity date for €1.160 billion of Class A notes under the European ABS has been extended to April 30, 2027, with remaining commitments of €1.289 billion until March 31, 2026 [7] Strategic Positioning - The extensions of financial commitments are aimed at strengthening the company's financial foundation and enhancing strategic flexibility [1][2] - The company is positioned to continue executing its strategic plan focused on disciplined fleet management, revenue optimization, and rigorous cost control [1][2] - The CEO emphasized that these extensions reflect the confidence lenders have in the company's ability to transform and achieve long-term goals [2] Company Overview - Hertz Global Holdings Inc. is a leading car rental and mobility solutions provider, operating brands such as Hertz, Dollar, Thrifty, and Firefly with over 11,000 rental locations in 160 countries [4] - The company also offers used cars for sale through Hertz Car Sales and operates a car-sharing business in Europe [4]