Hertz Global Holdings Inc ( (HTZ) ) has released its Q3 earnings. Here is a breakdown of the information Hertz Global Holdings Inc presented to its investors.
Hertz Global Holdings, Inc. operates one of the largest vehicle rental businesses worldwide, with well-known brands like Hertz, Dollar, and Thrifty, serving customers across North America, Europe, and several other regions. The company also engages in car sales and car-sharing services, expanding its reach in the mobility sector.
In its third quarter of 2024, Hertz Global Holdings faced a challenging financial landscape, reporting a decline in revenues to $2.6 billion and a significant GAAP net loss of $1.3 billion. This loss was largely influenced by a substantial non-cash asset impairment charge of $1.0 billion, reflecting the ongoing pressures from diminished fleet residual values and strategic fleet rotation initiatives.
Key financial metrics highlight the company’s struggles, including a negative adjusted corporate EBITDA of $157 million and a revenue decline compared to the prior year. The adjusted net loss was $208 million, with the company facing increased vehicle depreciation costs, which rose by $436 million. Despite these challenges, Hertz maintained a corporate liquidity of $1.6 billion at the end of September 2024, providing a cushion for ongoing operational and strategic adjustments.
Hertz continues to focus on its transformation strategy, emphasizing operational efficiencies and capacity management. The company aims to complete its fleet rotation by the end of 2025, with expectations to stabilize depreciation per unit costs. This strategic focus is intended to realign Hertz’s business model to better serve its customers and shareholders in the long term.
Looking ahead, Hertz’s management remains committed to its transformation initiatives, aiming for sustainable growth and improved financial health. The company is navigating through current challenges with a focus on enhancing operational performance and optimizing its asset base to deliver value to shareholders in the coming years.
