HTZ Q3 2024 Earnings

Call Details

• Call Title: Hertz Q3 2024 Earnings Call
• Date: November 12, 2024 at 2:00 PM UTC
• Management Team:
  • Johann Rawlinson (Vice President of Investor Relations)
  • Gil West (Chief Executive Officer)
  • Scott Haralson (Chief Financial Officer)
  • Sandeep Dube (Chief Commercial Officer)
  • Darren Arrington (Executive Vice President for Revenue Management)

Call Summary

Financial Performance

• Revenue for the third quarter was $2.6B.
• Adjusted corporate EBITDA for Q3 was a loss of $157M on a non-GAAP basis.
• Transaction days were down 4% versus prior year while RPD was relatively flat versus Q3 last year.
• A non-cash asset impairment charge of just over $1B was recorded and primarily affected U.S. and European fleets.
• Quarterly DPU was $537 per unit per month in Q3, with Q4 DPU expected in the $350 to $375 range.
• Quarter-over-quarter DOE expense is down almost 2%.
• Q3 included two months of pre-impairment depreciation and one month at the post-impairment depreciation rate due to an August 31 impairment recognition.
• EVs represent less than 10% of the fleet today.

Guidance

• Q4 DPU is expected to be in the $350 to $375 per unit per month range.
• The target run rate DPU has been updated from the previously hinted $325 to a run rate below $300 per unit per month by the end of 2025.
• No formal guidance for full-year 2025 was provided beyond run rate metric targets.
• Target run rate operational metrics remain DOE per day in the low 30s and RPU above $1,500.
• The company is working toward providing regular formal guidance beginning in 2025.
• The updated DPU target is supported by contracted model year 2025 purchases and expected economics on those buys.