Hertz Global Holdings, Inc. reported fourth‑quarter and full‑year 2025 financial results, posting a net loss of $194 million for the quarter and a larger net loss of $747 million for the year, compared with a $479 million loss in Q4 2024 and a $2.9 billion loss for 2024. The quarterly loss narrowed from $479 million a year earlier, while the full‑year loss widened, reflecting the company’s ongoing restructuring and the impact of a $60 million non‑cash depreciation charge related to unfavorable residual‑value expectations.
The company generated $2.028 billion in revenue for Q4 2025, a slight decline of about 0.5% from $2.04 billion in the same period a year earlier. Full‑year revenue fell to $8.5 billion, down from $9.0 billion in 2024, a decline that mirrors the broader industry slowdown and the effect of government shutdowns, FAA flight cancellations, technology‑vendor outages, and high vehicle recall volumes. Despite the revenue dip, the company’s adjusted corporate EBITDA margin improved to –10% from –18% a year earlier, driven by higher utilization and lower depreciation costs.
Earnings per share fell to $‑0.72, missing the consensus estimate of $‑0.53 by $‑0.19, a 36% miss. The miss was largely attributable to the one‑time $60 million depreciation charge and the continued pressure on operating margins. Revenue, however, met or slightly beat expectations, with analysts noting that the company’s strong demand in core segments offset the headwinds.
Management highlighted progress under the Back‑to‑Basics strategy. CEO Gil West said, "Hertz sits on a stronger foundation today than we did one year ago." He added, "In the fourth quarter, we delivered measurable progress and our strongest year‑over‑year revenue performance in nearly two years, despite a complex environment. We achieved a $2 billion improvement in profitability in our first full year under the Back‑to‑Basics strategy, driven by meaningful gains in revenue, utilization, unit economics, and customer experience." CFO Kenny Cheung noted, "Despite the headwinds, our liquidity position remains robust, and we are well‑positioned for future growth."
Investors reacted to the earnings miss, focusing on the wider‑than‑expected loss per share and the impact of the $60 million non‑cash depreciation charge. The company reiterated its guidance for 2026, projecting a return to positive earnings by Q2 2026 and a liquidity position well north of $1 billion by year‑end. The results underscore the company’s ongoing transition, with improved margins but persistent profitability challenges.
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