Hertz Achieves Positive EBITDA, Record Retail Sales Amid Fleet Challenges and Recall Issues.

Hertz Global Holdings Inc reported positive adjusted corporate EBITDA for the first time in nearly two years, a $0.5 billion year-over-year improvement. The company achieved the highest second-quarter retail vehicle sales in five years and exceeded its North Star target for depreciation per unit. However, revenue was down 7% year over year, and the company faced challenges with pricing, which was down mid- to high single digits in the market. Hertz revised its full-year EBITDA outlook to slightly below breakeven.

Hertz Global Holdings Inc. (NASDAQ: HTZ) has reported a significant improvement in its financial performance, with positive adjusted corporate EBITDA for the first time in nearly two years. The company achieved a year-over-year improvement of approximately $0.5 billion, driven by its disciplined fleet management, operational efficiency, and rigorous cost management strategies [1].

The second quarter of 2025 saw Hertz's net income and adjusted corporate EBITDA both improve by around $0.5 billion compared to the same period last year. This marks a substantial turnaround for the company, which has been focusing on operational improvements and cost control to bolster its financial health [1].

Key highlights of the quarter include:

- Vehicle Utilization: Hertz's vehicle utilization reached 83%, a year-over-year increase of 300 basis points, reflecting its precision in fleet optimization.
- Depreciation Per Unit Per Month (DPU): The company exceeded its North Star target for DPU, achieving $251, which is 16% below the sub-$300 target.
- Retail Vehicle Sales: Hertz achieved its highest second-quarter retail vehicle sales volume in five years, including through its direct-to-consumer Hertz Car sales, indicating strong demand.
- Direct Operating Expenses (DOE): DOE declined by 3% year-over-year, demonstrating disciplined cost control and operational agility.

Despite these positive developments, Hertz faced challenges with revenue and pricing. Total revenues were down 7% year-over-year, and the company reported mid- to high single-digit declines in pricing. The company has revised its full-year EBITDA outlook to slightly below breakeven, reflecting these market conditions [1].

Hertz's CEO, Gil West, attributed the company's turnaround to its transformation strategy, which includes smarter fleet management, improved utilization, enhanced customer experience, and disciplined cost control. The company is well-positioned to lead in the future of mobility, with a stronger, more resilient operational foundation [1].

References:
[1] Hertz Global Holdings, Inc. (2025). Hertz Logs Best Quarterly Results in Nearly Two Years Driven by Half-a-Billion-Dollar Profitability Improvement. Retrieved from https://ir.hertz.com/news/news-details/2025/Hertz-Logs-Best-Quarterly-Results-in-Nearly-Two-Years-Driven-by-Half-a-Billion-Dollar-Profitability-Improvement/default.aspx