HTZ stock got a fresh read on Hertz’s turnaround Thursday as the company narrowed its second-quarter adjusted loss to $47 million. Higher rental pricing and solid commercial performance helped push revenue up 10% year over year, giving shareholders a cleaner view of operating progress.
Gil West on execution
Gil West said "disciplined execution and strong commercial performance helped drive operational improvements" as Hertz worked through the quarter. The company’s adjusted net loss improved from $91 million a year earlier, or $0.29 per share, to $47 million, or $0.11 per diluted share, while adjusted corporate EBITDA rose to $81 million and topped the upper end of revised guidance.
Revenue per unit up 8%
8% higher revenue per unit and a 9% increase in revenue per rental day showed the quarter’s lift came from pricing and day-level yield, not just a larger fleet. Hertz said its fleet was 1% smaller than a year earlier, yet vehicle utilization still improved to 79%, or 81% excluding recalls, which points to tighter use of the cars it had on hand.
17% wider spread between revenue per day and direct operating expenses marked the third consecutive quarter of improvement. That spread is the key operating gap the business has to keep widening if the current pricing trend is going to hold through the rest of the year.
Nearly 15,000 vehicles recalled
Nearly 15,000 vehicles were affected by recalls on average during the quarter, roughly three times more than the same period last year. Hertz estimated that the disruption reduced GAAP net income by about $27 million and lowered adjusted EBITDA by around $30 million, a drag that came alongside the improved revenue picture.
$984 million in liquidity left Hertz with room to keep funding the turnaround while it pursues profitability in core car rental operations and expands higher-value businesses such as fleet management, vehicle services and broader mobility solutions. The next test is whether revenue per unit stays above $1,500 and net depreciation per unit remains at or below $300, because those two figures will show whether the quarter’s margin gains can survive another round of recall pressure.
