Business
HERTZ REPORTS SIGNIFICANT PROGRESS TOWARDS KEY MILESTONES FOR FIRST QUARTER 2025
"Our 'Back-to-Basics Roadmap' is working," said Gil West, Chief Executive Officer of Hertz. "Disciplined fleet management, revenue optimization, and rigorous
About this update from Hertz Global Holdings, Inc
[{"type":"text","content":"\"Our 'Back-to-Basics Roadmap' is working,\" said Gil West, Chief Executive Officer of Hertz. \"Disciplined fleet management, revenue optimization, and rigorous cost control are driving meaningful results. In a dynamic environment shaped by tariffs and economic uncertainty, capitalizing on our fleet as our most dominant economic lever keeps us agile today and positions us to deliver long-term, sustainable value.\n\"Just a year ago, we were managing through an aging fleet and pressure on residual values. Today, thanks to swift and disciplined action, we've rotated into a newer, more efficient fleet that's resilient, cost-effective, and aligned with a rising residual environment. As an asset management business that buys, rents, and sells vehicles, disciplined execution across all three areas is key to unlocking stronger returns and strengthening our financial foundation.\"\nESTERO, Fla., May 12, 2025 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) (\"Hertz\", \"Hertz Global\" or the \"Company\") today reported results for its first quarter 2025. \n\nHighlights \nThe fleet rotation is delivering results, with vehicle depreciation down 45% year-over-year, due to the \"Buy Right, Hold Right, Sell Right\" strategy: The Company is targeted to meet sub $300 depreciation per unit (\"DPU\") faster than expected. This is now forecasted to be achieved in the second quarter, with model year 2025 vehicles already achieving this targetMore than 70% of the core U.S. rental fleet is 12 months old or newer Record quarter for retail vehicle sales including Hertz Car Sales The Company achieved a $92 million year-over-year improvement in direct operating expenses which was a result of cost control initiatives, supported by the strategic fleet rotation. The Company remains on track to achieve positive Adjusted Corporate EBITDA by the third quarter of 2025.As of March 31, 2025, Hertz had $1.2 billion in corporate liquidity. In May 2025, Hertz extended the maturity of $1.7 billion of its First Lien revolving credit facility (\"RCF\") maturities to June 2028.Overview \nHertz initiated a comprehensive strategic transformation one year ago under CEO Gil West. \nUnder Mr. West's leadership and a newly appointed executive team, Hertz established its \"Back-to-Basics Roadmap\" anchored by three core financial pillars: fleet management, revenue opt...