Estero-based Hertz sees bumpy first quarter, with wider-than-expected losses

Laura Layden, Naples Daily News

Tue, May 13, 2025, 12:13 PM 3 min read

Hertz had a bumpy archetypal quarter.

The Estero-based rental car elephantine reported a wider than expected loss, missing analysts' estimates connected some net and revenue.

A twelvemonth ago, genitor institution Hertz Global Holdings launched what it describes arsenic a "comprehensive strategical transformation," nether a caller CEO.

In April 2024, Gil West took the helm, aft a large stake connected electrical vehicles failed to wage off, starring to large losses.

Late past year, Hertz completed the merchantability of 30,000 EVs.

In the archetypal quarter, the institution posted an adjusted nonaccomplishment of $1.12 a share, versus an expected nonaccomplishment of 98 cents.

Revenue declined by 13% implicit the twelvemonth to $1.81 billion, falling abbreviated of the $2 cardinal oregon much expected by analysts.

Net losses for the 4th came successful astatine $443 million.

Shares plummeted connected May 13, pursuing the disappointing results, falling by much 20% during aboriginal greeting trading, earlier improving a bit.

Hertz attributed the quarterly gross diminution mostly to a smaller fleet, down successful size by 8% from past year. The little gross wore connected earnings.

In a statement, West said the caller operating strategy, with a 'back to basics roadmap,' is working, with advancement made toward cardinal milestones.

"Disciplined fleet management, gross optimization, and rigorous outgo power are driving meaningful results," West said. "In a dynamic environment, shaped by tariffs and economical uncertainty, capitalizing connected our fleet arsenic our astir ascendant economical lever keeps america agile contiguous and positions america to present long-term, sustainable value."

The caller strategy prioritizes acquiring vehicles astatine much favorable prices, amended aligning fleet with lawsuit demands, and maximizing conveyance resale values done retail channels, including its ain division, Hertz Car Sales.

In a quality release, Hertz explained that it's intentionally "running a tighter fleet," portion capitalizing connected a beardown resale marketplace to get escaped of the remainder of its older vehicles, adjacent faster, amid "demand uncertainties."

The company's absorption is connected offsetting the impacts of a smaller fleet done higher utilization of its vehicles, and "sweating the assets," done much days of use.

As portion of the caller strategy, Hertz shared that it acquired 2025 vehicles up of tariffs, and that 70% of its rental cars successful the United States are present 1 twelvemonth old, oregon younger.

In the archetypal quarter, Hertz saw its strongest-ever 4th for retail conveyance sales. In an effort to physique connected that momentum, the institution said it's "expanding its retail footprint, deepening strategical partnerships, and expanding visibility of the Hertz Car Sales brand."