Hertz's Q4 2024 Earnings: A Mixed Bag of Challenges and Progress

Hertz Global Holdings Inc (HTZ, Financial) released its 8-K filing on February 13, 2025, detailing its financial performance for the fourth quarter and full year 2024. The company, a leader in vehicle rental and leasing services, reported a revenue of $2.0 billion for Q4 2024, a 7% decrease from the $2.184 billion reported in Q4 2023. The company also posted a GAAP net loss of $479 million, or $1.56 per diluted share, which was below the analyst estimate of -$0.64 per share. For the full year 2024, revenue was $9.0 billion, slightly below the annual estimate of $9.132 billion, with a GAAP net loss of $2.9 billion, or $9.34 per diluted share, compared to the estimated -$8.41 per share.



Despite the challenges, Hertz Global Holdings Inc (HTZ, Financial) has been focusing on stabilizing its business and implementing strategic changes. The company completed a 30,000 EV fleet reduction announced in 2023, which contributed to a 19% improvement in vehicle depreciation year-over-year in Q4 2024. Additionally, Hertz maintained strong corporate liquidity of $1.8 billion as of December 31, 2024, which is crucial for sustaining operations and supporting strategic initiatives.

Key Financial Metrics
The company's adjusted corporate EBITDA loss narrowed to $357 million in Q4 2024 from $382 million in the same period the previous year. This improvement reflects Hertz's efforts to enhance operational efficiencies and manage costs effectively. However, direct vehicle and operating expenses increased by 2% year-over-year, driven by insurance cost headwinds and additional non-cash rent expenses.

"Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company," said Gil West, Hertz CEO. "With our new leadership team and organizational structure in place, we are well positioned to execute our strategy with rigor and at pace. We are turning our fleet into a business advantage with a comprehensive strategy that will enable us to operate more efficiently while improving vehicle choice for our customers. Throughout this transformation, we remain focused on building customer trust and confidence by delivering a best-in-class experience."



Segment Performance
Segment Total Revenues (Q4 2024) Adjusted EBITDA (Q4 2024)
Americas RAC $1.669 billion -$297 million
International RAC $371 million $1 million

The Americas RAC segment, which derives maximum revenue, saw an 8% decline in total revenues compared to Q4 2023, while the International RAC segment experienced a 2% decrease. The adjusted EBITDA for the Americas RAC segment improved slightly, while the International RAC segment's adjusted EBITDA dropped significantly from $44 million in Q4 2023 to $1 million in Q4 2024.

Analysis and Outlook
Hertz Global Holdings Inc (HTZ, Financial) is navigating a challenging environment with strategic initiatives aimed at transforming its operations and improving efficiency. The company's focus on fleet optimization and cost management is crucial for enhancing profitability. However, the persistent challenges, including increased operating expenses and a competitive market, continue to impact financial performance. As Hertz progresses with its transformation strategy, its ability to adapt to market dynamics and execute its plans effectively will be key to achieving sustainable growth and value creation for stakeholders.