Hertz Global Reports $1.3 Billion Loss

By Tamara Parker • Tuesday, November 12 10:21 • Permanent Link

Hertz Global Holdings, Inc. has reported its third-quarter 2024 results, showcasing the company's ongoing efforts to implement its transformation strategy to deliver sustainable, long-term returns for shareholders. Here are the key financial highlights and metrics:

Revenue for the third quarter of 2024 was $2.6 billion, showing a 5% decrease compared to the same period in 2023.
The GAAP net loss for the quarter was $1.3 billion, representing a negative 52% margin, or a loss of $4.34 per diluted share. This includes a non-cash asset impairment charge of $1.0 billion.
Adjusted net loss for the quarter was $208 million, or a loss of $0.68 per diluted share.
Adjusted corporate EBITDA was negative $157 million, with a negative 6% margin, primarily due to an increase in vehicle depreciation of $436 million.
The company's liquidity at the end of September 30, 2024, was $1.6 billion.

In terms of operational metrics: Average vehicles and average rentable vehicles decreased by 1% and 2%, respectively, compared to the third quarter of 2023. Vehicle utilization stood at 82%, showing a decrease compared to 83% in the same period last year. Total revenue per day (RPD) decreased by 1% year over year, while total revenue per unit (RPU) per month decreased by 3%. Depreciation per unit per month increased by 89% compared to the prior year period.

Looking at the performance of the Americas RAC segment: Total revenues for the Americas RAC segment were $2.1 billion, a 5% decrease from the third quarter of 2023. Adjusted EBITDA for the segment was negative $169 million, with an 8% margin, compared to positive EBITDA in the prior year quarter.

For the International RAC segment: Total revenues for the International RAC segment were $514 million, showing a 3% decrease from the same period in 2023. Adjusted EBITDA for the segment was $63 million, with a 12% margin, a decrease from $109 million in the third quarter of 2023.

The company's ongoing operational transformation is expected to be substantially completed by the end of 2025, with structural operational efficiencies anticipated to drive ongoing improvements in per day unit costs.

Hertz Global's webcast and conference call to discuss its third-quarter 2024 results will be held on November 12, 2024, at 9:00 a.m. Eastern Time.

These figures and metrics provide a detailed snapshot of Hertz Global's financial and operational performance in the third quarter of 2024, reflecting the company’s ongoing efforts to navigate through a challenging operating environment and execute its strategic transformation plan. As a result of these announcements, the company's shares have moved -2.4% on the market, and are now trading at a price of $3.29. For the full picture, make sure to review Hertz Global's 8-K report.

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