Hertz Global Holdings Inc. (NASDAQ: HTZ) is a well-known provider of car rental and mobility solutions, operating renowned brands such as Hertz, Dollar, and Thrifty with over 11,000 locations in 160 countries. The company has been navigating a transformative period that began a year ago, with a comprehensive strategic roadmap aimed at enhancing profitability through disciplined fleet management, revenue optimization, and cost efficiency.

For the first quarter of 2025, Hertz reported a revenue decline to $1.81 billion from $2.08 billion in the same quarter of 2024, reflecting a decrease of 13%. The year-over-year revenue drop was primarily attributed to a reduced fleet capacity, which was down 8% year-over-year. Adjusted EBITDA improved significantly, with a loss of $325 million compared to a loss of $567 million a year earlier, representing a 43% improvement in margin, up 9%.

In terms of fleet metrics, the depreciation per unit (DPU) was reported at $353 per month, a 40% decrease from $588 per month in the previous year. Notably, vehicle depreciation was down 45% year-over-year, with forecasts indicating that DPU could dip below $300 by the second quarter of 2025, ahead of earlier expectations. Over 70% of Hertz’s core U.S. rental fleet is now 12 months old or newer, enhancing operational efficiency.

The company’s adjusted net income, however, showed a loss of $346 million, slightly better than the $392 million loss reported in the previous year. Adjusted diluted earnings per share were reported at a loss of $1.12, compared to a loss of $1.28 a year prior.

Direct operating expenses demonstrated a reduction of approximately $92 million year-over-year, accompanied by a decrease of 4% in direct operating expense per day quarter-over-quarter. The decrease resulted despite lower transaction volumes. The company’s liquidity remains strong, with $1.2 billion available at the quarter’s end, following the extension of approximately $1.7 billion in revolving credit facilities.

The company’s fleet management strategy, encapsulated in the “Buy Right, Hold Right, Sell Right” approach, continues to drive measurable benefits in operational performance. Retail vehicle sales reached record levels in the quarter, benefiting from a strategic pivot towards retail sales amid rising used car values. Despite uncertainties in corporate and government demand, forward bookings for leisure travel are showing positive year-over-year growth.

Overall, the second quarter of 2025 remains on track to achieve a breakeven EBITDA forecast, with expectations for a sizable profit in the third quarter, along with an optimistic view towards achieving ongoing improvements in margin and efficiency, sustaining their strategic focus on enhancing unit economics and driving returns in a competitive market environment.