Key Highlights
- The car rental company reported a Q2 adjusted loss of $0.11 per share, significantly better than the anticipated $0.23 loss
- Total revenue reached $2.40 billion, representing a 9.7% increase from the prior year and exceeding the $2.28 billion analyst projection
- Revenue per transaction day jumped 9% while revenue per unit increased 8%, achieved despite a 1% reduction in fleet size
- The company forecasts Q3 adjusted corporate EBITDA between $275 million and $325 million alongside positive earnings per share
- Shares of HTZ have climbed more than 20% post-earnings but continue to trade 57.6% below their year-to-date starting point
Shares of Hertz (HTZ) have surged over 20% in the wake of the company’s second-quarter 2026 financial results, released on August 6, with the stock changing hands near $2.22 per share.
Hertz Global Holdings, Inc., HTZ
The vehicle rental giant posted an adjusted per-share loss of $0.11, comfortably surpassing Wall Street’s expectation for a $0.23 loss. This represented a 52.2% favorable variance and showed meaningful improvement compared to the $0.29 adjusted loss recorded during the corresponding period in 2025.
Total quarterly revenue hit $2.40 billion, topping consensus projections of $2.28 billion by 4.9%. This figure reflected a 9.7% year-over-year advancement.
The top-line expansion was primarily pricing-driven. Revenue per transaction day advanced 9% while revenue per vehicle unit grew 8%, accomplished even as Hertz maintained a fleet size that was 1% smaller compared to the year-ago quarter.
Adjusted corporate EBITDA totaled $81 million, representing a $63 million increase versus the prior-year period. The EBITDA margin expanded to 3.4% from a mere 0.8% in Q2 2025. The quarterly performance absorbed an estimated $30 million EBITDA drag stemming from higher-than-normal vehicle recall activity.
Management’s Forward Guidance
Looking ahead to the third quarter of 2026, Hertz management projects adjusted corporate EBITDA in the range of $275 million to $325 million alongside profitability on a per-share basis. The company anticipates transaction days will expand by approximately 1% year over year.
For the complete 2026 fiscal year, the outlook encompasses adjusted corporate EBITDA of $225 million to $275 million, net vehicle depreciation per unit near $300 monthly, and transaction day volume growth of roughly 2%.
The rental company anticipates finishing 2026 with available liquidity ranging from $1.0 billion to $1.4 billion, and management expects to generate positive free cash flow throughout the year’s second half.
At the close of Q2, total cash, cash equivalents and restricted cash stood at $1.30 billion, climbing from $1.17 billion at 2025 year-end. The company produced $381 million in operating cash flow and $162 million in adjusted free cash flow during the three-month period. Available liquidity at quarter-end registered $984 million.
Shares Remain Significantly Underwater
While the recent rally is noteworthy, perspective is essential. HTZ shares continue to trade 57.6% lower since the beginning of 2026 and sit 71.6% beneath the 52-week peak of $7.81 established in April 2026.
Direct vehicle and operational costs climbed 4.3% year over year to $1.45 billion. Net depreciation on revenue-generating vehicles surged 17.3% to $487 million. Selling, general and administrative expenses grew 4.9% to $258 million, although as a proportion of revenue, SG&A improved modestly to 10.8% from 11.3%.
The stock currently holds a Zacks Rank of 4 (Sell).
Prior to the earnings-driven movement, the stock had already climbed nearly 30% in the preceding session, indicating that market participants had begun anticipating favorable results ahead of the official announcement.
For the third quarter, net depreciation per vehicle unit is projected to fall between $285 and $295 per month.
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