HTZ Q3 2025 Earnings

Call Details

• Call Title: Hertz Q3 2025 Earnings Call
• Date: November 4, 2025 at 2:00 PM UTC
• Management Team:
  • Johann Rawlinson (Vice President of Investor Relations)
  • Gil West (Chief Executive Officer)
  • Sandeep Dube (Chief Commercial Officer)
  • Scott Haralson (Chief Financial Officer)

Call Summary

Financial Performance

• Hertz reported $2.5 billion in revenue for Q3 2025 and adjusted corporate EBITDA of $190 million, representing an approximately $350 million year-over-year improvement.
• The company posted net income of $184 million and reported positive EPS for the first time in two years.
• Adjusted free cash flow was approximately $250 million for the quarter, including a $154 million one-time benefit from a litigation settlement distribution.
• RPU for the quarter was $1,530, which management described as nearly flat year over year and improving sequentially through the quarter.
• Transaction days were almost flat versus Q3 2024 despite operating a fleet that was 7% smaller year over year.
• Direct operating expenses declined 1% year over year and DOE per day improved both sequentially and annually despite inflationary pressures.

Guidance

• Hertz updated Q4 guidance to a slightly negative margin range of negative low to mid single digits EBITDA margin.
• For Q4, the company expects transaction days to be close to flat year over year with fleet down just under 5% and a slightly higher incidence of recalls affecting utilization.
• The company expects DOE per day to be lower by roughly 5% in Q4, driven primarily by a nonrecurring true-up expense in 2024; excluding that true-up, DOE per day is expected to be down about 1% to 2%.
• Hertz expects net DPU to rise slightly quarter over quarter to a range of $280 to $285 per month in Q4 2025.
• For 2026, the company is targeting a 3% to 6% EBITDA margin and is targeting $1 billion of EBITDA production in 2027 as a multi-year objective.
• The company expects to have more than 80% of 2026 purchase volume already procured and plans to begin fleet growth in 2026 with flexibility to adjust pace to market dynamics.