Hertz Global Holdings Inc Reports Q4 2024 Revenue of $2.0 Billion, EPS of -$1.56, Missing Analyst Estimates

Challenges Persist Despite Strategic Initiatives

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Feb 13, 2025
Summary
  • Revenue: $2.0 billion for Q4 2024, falling short of the estimated $2.124 billion.
  • Net Loss: GAAP net loss of $479 million, translating to a loss of $1.56 per diluted share for Q4 2024.
  • Annual Revenue: $9.0 billion for FY 2024, slightly below the annual estimate of $9.132 billion.
  • Annual Net Loss: $2.9 billion for FY 2024, or $9.34 loss per diluted share, indicating significant financial challenges.
  • Adjusted Corporate EBITDA: Loss narrowed to negative $357 million in Q4 2024, showing some improvement from the previous year.
  • Fleet Management: Completed a 30,000 EV fleet reduction, aligning with strategic goals to optimize fleet efficiency.
  • Liquidity: Maintained strong corporate liquidity with $1.8 billion as of December 31, 2024, providing a buffer for ongoing operations.
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On February 13, 2025, Hertz Global Holdings Inc (HTZ, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year 2024. The company, a leader in vehicle rental and leasing services, operates through well-known brands such as Hertz, Dollar, Thrifty, and Firefly, offering a range of vehicles and ancillary services across the Americas and international markets.

Performance Overview and Challenges

Hertz Global Holdings Inc (HTZ, Financial) reported a revenue of $2.0 billion for Q4 2024, a 7% decrease from the $2.184 billion reported in Q4 2023. The company also posted a GAAP net loss of $479 million, or $1.56 per diluted share, which was below the analyst estimate of -$0.64 per share. For the full year 2024, revenue was $9.0 billion, slightly below the annual estimate of $9.132 billion, with a GAAP net loss of $2.9 billion, or $9.34 per diluted share, compared to the estimated -$8.41 per share.

Strategic Initiatives and Financial Achievements

Despite the challenges, Hertz Global Holdings Inc (HTZ, Financial) has been focusing on stabilizing its business and implementing strategic changes. The company completed a 30,000 EV fleet reduction announced in 2023, which contributed to a 19% improvement in vehicle depreciation year-over-year in Q4 2024. Additionally, Hertz maintained strong corporate liquidity of $1.8 billion as of December 31, 2024, which is crucial for sustaining operations and supporting strategic initiatives.

Key Financial Metrics

The company's adjusted corporate EBITDA loss narrowed to $357 million in Q4 2024 from $382 million in the same period the previous year. This improvement reflects Hertz's efforts to enhance operational efficiencies and manage costs effectively. However, direct vehicle and operating expenses increased by 2% year-over-year, driven by insurance cost headwinds and additional non-cash rent expenses.

“Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company," said Gil West, Hertz CEO. "With our new leadership team and organizational structure in place, we are well positioned to execute our strategy with rigor and at pace.”

Segment Performance

Segment Total Revenues (Q4 2024) Adjusted EBITDA (Q4 2024)
Americas RAC $1.669 billion -$297 million
International RAC $371 million $1 million

The Americas RAC segment, which derives maximum revenue, saw an 8% decline in total revenues compared to Q4 2023, while the International RAC segment experienced a 2% decrease. The adjusted EBITDA for the Americas RAC segment improved slightly, while the International RAC segment's adjusted EBITDA dropped significantly from $44 million in Q4 2023 to $1 million in Q4 2024.

Analysis and Outlook

Hertz Global Holdings Inc (HTZ, Financial) is navigating a challenging environment with strategic initiatives aimed at transforming its operations and improving efficiency. The company's focus on fleet optimization and cost management is crucial for enhancing profitability. However, the persistent challenges, including increased operating expenses and a competitive market, continue to impact financial performance. As Hertz progresses with its transformation strategy, its ability to adapt to market dynamics and execute its plans effectively will be key to achieving sustainable growth and value creation for stakeholders.

Explore the complete 8-K earnings release (here) from Hertz Global Holdings Inc for further details.