Key Takeaways
- HTZ shares jumped over 20% in Friday’s premarket session, building on Thursday’s 29.49% rally
- Second-quarter revenue reached $2.4 billion, surpassing the $2.28 billion Wall Street forecast
- Company reported an adjusted loss of 11 cents per share versus expectations of a 24-cent loss
- Revenue per day climbed 9% compared to last year, setting a new Q2 benchmark
- Chief Executive Gil West questioned the stock’s valuation amid strengthening business metrics
Shares of Hertz Global (HTZ) climbed more than 20% during Friday’s premarket hours, reaching $2.42 per share. This surge followed Thursday’s impressive 29.49% advance, as investors reacted positively to the company’s second-quarter financial performance that exceeded analyst projections across key metrics.
Hertz Global Holdings, Inc., HTZ
The rental car company delivered second-quarter revenue of $2.4 billion, representing a 10% increase from the same period last year and topping the analyst consensus estimate of $2.28 billion. On the bottom line, Hertz reported an adjusted loss of 11 cents per share, significantly narrower than the anticipated 24-cent loss.
Adjusted corporate EBITDA totaled $81 million, comfortably surpassing Oppenheimer’s $40 million projection and the broader Street estimate of $59 million. This figure represented a $63 million improvement compared to the prior-year quarter.
Company Achieves Historical Revenue Milestone
The company’s revenue per day metric advanced 9% on a year-over-year basis, establishing a new record for any second quarter in the company’s history. Revenue per unit likewise climbed 8% to reach $1,542, a figure that surpasses Hertz’s own long-term objectives.
Management attributed approximately 6 to 7 percentage points of the RPD improvement to commercial strategies, 2 to 3 points to broader industry pricing trends, and under half a percentage point to the FIFA World Cup event.
Fleet utilization expanded by 80 basis points to 79%, an achievement made more impressive given that recall volume surged 300% year-over-year, impacting roughly 15,000 vehicles monthly. These vehicle recalls negatively affected EBITDA by over $55 million during the first six months of 2026.
At U.S. airport locations, rental RPD increased 12% versus the prior year, contributing to a second consecutive quarter of double-digit global revenue expansion.
Chief Executive Questions Market Valuation
Following the earnings announcement, CEO Gil West offered pointed commentary on the company’s market position. He noted that Hertz’s market capitalization had declined to approximately one-third of its level from 90 days prior, despite enhanced liquidity and superior operational performance.
West characterized the current stock valuation as difficult to reconcile with the company’s strengthening fundamentals. Oppenheimer maintained its Perform rating on the shares after reviewing the results, while InvestingPro data suggested the stock may be overvalued at present levels.
Despite the recent gains, the stock remains down 60% for the year-to-date period.
The company closed the second quarter with $984 million in available liquidity following the completion of a $350 million exchangeable senior secured notes transaction. Hertz maintains a total debt load of $20.6 billion.
Looking ahead to the third quarter, Hertz provided guidance for adjusted corporate EBITDA in the range of $275 million to $325 million and anticipates positive earnings per share. For the full 2026 fiscal year, the company forecasts EBITDA between $225 million and $275 million, with year-end liquidity projected at $1 billion to $1.4 billion.
Company leadership anticipates over $500 million in EBITDA improvement during 2026, building on a $1.2 billion enhancement achieved in 2025.
Hertz confirmed its 2027 objective of reaching $1 billion in adjusted corporate EBITDA and indicated expectations for a return to full-year GAAP profitability alongside positive free cash flow generation.
The company also provided an update on its ORO Mobility division, which operates on Uber’s platform across Atlanta, Los Angeles, San Francisco and Northern New Jersey markets, projecting this business segment will generate over $600 million in revenue during 2026.
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