The car rental company topped Wall Street forecasts, posted stronger pricing and utilization, and outlined 2026 and 2027 targets as CEO Gil West said the stock's valuation does not reflect improving fundamentals.
Hertz Global Holdings shares surged in premarket trading after the car rental company reported second-quarter 2026 results that beat Wall Street expectations and reinforced confidence in its turnaround. Revenue rose 10% year over year to $2.4 billion, above the $2.28 billion analyst consensus, while adjusted loss improved to 11 cents per share from the prior-year quarter and came in better than expectations for a 24-cent loss. Adjusted corporate EBITDA climbed to $81 million, up $63 million from a year earlier and above guidance, as stronger pricing, higher utilization and an expanding spread between revenue per day and direct operating expense supported margins. Chief Executive Gil West said Hertz's market valuation was "tough to understand," arguing the stock had fallen to roughly one-third of its level 90 days earlier even as liquidity, operating performance and turnaround execution improved. The company ended the quarter with $984 million in liquidity after a $350 million exchangeable senior secured notes offering. Key operating metrics also improved. Revenue per unit rose 8% to a record $1,542, revenue per day increased 9% in the strongest second quarter on record, fleet utilization improved 80 basis points to 79%, and the revenue-per-day-to-DOE spread widened 17% to about $24.36 per day. U.S. airport rental revenue per day rose 12%, helped by commercial initiatives and favorable industry pricing. Recalls remained a drag, with volume up 300% year over year and an average of 15,000 vehicles per month affected, reducing EBITDA by more than $55 million during the first half of 2026. For the third quarter, Hertz expects adjusted corporate EBITDA of $275 million to $325 million and positive earnings per share. For full-year 2026, it forecast adjusted corporate EBITDA of $225 million to $275 million, transaction-day growth of about 2%, net depreciation per unit of about $300 per month and year-end liquidity of $1 billion to $1.4 billion. Hertz also said ORO Mobility is expected to generate more than $600 million in 2026 revenue and reaffirmed a 2027 target of $1 billion in adjusted corporate EBITDA, alongside a return to full-year GAAP profitability and positive free cash flow.