Avis Budget reports Q4 EPS ($55.66)

Reports Q4 revenue $2.71B, consensus $2.72B. The company noted that net loss and adjusted EBITDA results reflect a change in strategy to significantly accelerate fleet rotations, which resulted in shortening the useful life of the majority of vehicles in the Americas segment. The financial impact of this decision was a one-time non-cash impairment of $2.3B and other non-cash related charges of $180M. “We took the necessary actions to accelerate our fleet rotation in the Americas segment, which will create more certainty in our fleet costs and better position us for sustainable growth for 2025 and beyond. Travel demand is strong, and our brands are well-positioned to take advantage of this activity,” said Joe Ferraro, Avis Budget (CAR) Group CEO. “In the United States, the December holidays were a record and Martin Luther King Jr. Day was robust, denoting the strength of leisure activity, which we believe will continue throughout this year. For these reasons, I am confident in our ability to generate no less than $1 billion of Adjusted EBITDA in 2025.”