“Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company,” said Gil West, Hertz CEO. “With our new leadership team and organizational structure in place, we are well positioned to execute our strategy with rigor and at pace. We are turning our fleet into a business advantage with a comprehensive strategy that will enable us to operate more efficiently while improving vehicle choice for our customers. Throughout this transformation, we remain focused on building customer trust and confidence by delivering a best-in-class experience.
“As an asset-heavy business with extensive global reach, we have the scale and expertise to lead the industry again. The foundation we built in 2024 positions us to execute our transformation in 2025, and I am confident in our ability to deliver sustainable value for our customers, employees, and shareholders.”
ESTERO, Fla., Feb. 13, 2025 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (“Hertz”, “Hertz Global” or the “Company”) today reported results for its fourth quarter and full year 2024.
Q4 2024
FY 2024
OVERVIEW
The Company has been executing a commercial strategy aimed at maximizing RPU, primarily by driving a greater mix of high RPD business coupled with keeping fleet capacity inside demand. As a result, year over year RPU declines narrowed from down 7% in the first quarter of 2024 to down only 1% in the fourth quarter.
Vehicle depreciation improved 19% year over year in the fourth quarter. Fourth quarter 2023 included $245 million of loss on sale for EV’s stemming from the Company’s EV fleet reduction plan that did not recur in the fourth quarter of 2024. This benefit was partially offset by loss on sales experienced in the fourth quarter of 2024 largely driven by the impacts of higher-than-normal defleeting. The Company is in the midst of a fleet rotation aimed at normalizing DPU that is expected to be substantially complete by the end of 2025, at which time it expects DPU to settle below $300.
In the fourth quarter, direct vehicle and operating expenses rose by 2% compared to the previous year. The increase was primarily due to insurance cost headwinds and the recognition of additional non-cash rent expense, which primarily resulted from leases expense recognition post the long-lived asset impairment in the third quarter of 2024. This, combined with lower volume, drove a 6% year over year increase in DOE per transaction day. Selling, general and administrative expenses improved 9% year over year in the fourth quarter, due mostly to lower personnel and advertising expenses. The Company is laser-focused on its continued execution of structural operational efficiencies, including initiatives to lower insurance costs, that it expects will drive ongoing improvements in per day unit costs.
Adjusted Corporate EBITDA loss narrowed year over year in the fourth quarter to negative $357 million.
The Company is in the midst of an operational transformation grounded in its back to basics strategy aimed at strengthening the core business. The Company is laser-focused on excellence in execution of this strategy. The operational transformation is ongoing and is expected to be substantially completed by the end of 2025.
SUMMARY RESULTS
Three Months Ended
December 31,
Percent
Inc/(Dec)
2024 vs 2023
($ in millions, except earnings per share or where noted)
2024
2023
Hertz Global – Consolidated
Total revenues
$ 2,040
$ 2,184
(7) %
Net income (loss)
$ (479)
$ (348)
38 %
Net income (loss) margin
(23) %
(16) %
Adjusted net income (loss)(a)
$ (362)
$ (418)
(13) %
Adjusted diluted earnings (loss) per share(a)
$ (1.18)
$ (1.36)
(13) %
Adjusted Corporate EBITDA(a)
$ (357)
$ (382)
(7) %
Adjusted Corporate EBITDA Margin(a)
(18) %
(17) %
Average Vehicles (in whole units)
532,884
553,545
(4) %
Average Rentable Vehicles (in whole units)
497,875
527,267
(6) %
Vehicle Utilization
79 %
78 %
Transaction Days (in thousands)
35,998
37,602
(4) %
Total RPD (in dollars)(b)
$ 57.10
$ 58.50
(2) %
Total RPU Per Month (in whole dollars)(b)
$ 1,376
$ 1,391
(1) %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 422
$ 501
(16) %
Americas RAC Segment
Total revenues
$ 1,669
$ 1,805
(8) %
Adjusted EBITDA
$ (297)
$ (309)
(4) %
Adjusted EBITDA Margin
(18) %
(17) %
Average Vehicles (in whole units)
432,909
446,573
(3) %
Average Rentable Vehicles (in whole units)
399,927
422,155
(5) %
Vehicle Utilization
80 %
79 %
Transaction Days (in thousands)
29,298
30,589
(4) %
Total RPD (in dollars)(b)
$ 57.06
$ 59.07
(3) %
Total RPU Per Month (in whole dollars)(b)
$ 1,393
$ 1,427
(2) %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 460
$ 553
(17) %
International RAC Segment
Total revenues
$ 371
$ 379
(2) %
Adjusted EBITDA
$ 1
$ 44
(98) %
Adjusted EBITDA Margin
— %
12 %
Average Vehicles (in whole units)
99,975
106,972
(7) %
Average Rentable Vehicles (in whole units)
97,948
105,112
(7) %
Vehicle Utilization
74 %
73 %
Transaction Days (in thousands)
6,700
7,013
(4) %
Total RPD (in dollars)(b)
$ 57.26
$ 56.03
2 %
Total RPU Per Month (in whole dollars)(b)
$ 1,305
$ 1,246
5 %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 258
$ 283
(9) %
NM – Not meaningful
(a)
Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2024 and 2023.
(b)
Based on December 31, 2023 foreign exchange rates.
EARNINGS WEBCAST INFORMATION
Hertz Global’s live webcast and conference call to discuss its fourth quarter 2024 results will be held on February 13, 2025, at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to Hertz Q4 and FY 2024 earnings teleco registration, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.
ABOUT HERTZ
Hertz Global Holdings Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the US, and the Hertz 24/7 car sharing business in Europe. For more information about Hertz, visit www.hertz.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include “forward-looking statements.” Forward-looking statements are identified by words such as “believe,” “expect,” “project,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “guidance” or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, economic and industry conditions and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.
Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things.
Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quartely Reports on Form 10-Q and Current Reports on Form 8-K
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
UNAUDITED FINANCIAL INFORMATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(In millions, except per share data)
2024
2023
2024
2023
Revenues
$ 2,040
$ 2,184
$ 9,049
$ 9,371
Expenses:
Direct vehicle and operating
1,413
1,388
5,689
5,455
Depreciation of revenue earning vehicles and lease charges, net
670
828
3,611
2,039
Depreciation and amortization of non-vehicle assets
32
49
139
149
Selling, general and administrative
225
247
819
962
Interest expense, net:
Vehicle
143
150
590
555
Non-vehicle
117
68
369
238
Total interest expense, net
260
218
959
793
Other (income) expense, net
2
—
4
12
(Gain) on sale of non-vehicle capital assets
—
—
—
(162)
Bankruptcy-related litigation reserve
4
—
292
—
Long-Lived Assets impairment
—
—
1,048
—
Change in fair value of Public Warrants
(3)
(53)
(275)
(163)
Total expenses
2,603
2,677
12,286
9,085
Income (loss) before income taxes
(563)
(493)
(3,237)
286
Income tax (provision) benefit
84
145
375
330
Net income (loss)
$ (479)
$ (348)
