- Hertz (HTZ, Financial) reports a 45% year-over-year reduction in vehicle depreciation in Q1 2025.
- Revenue for Q1 2025 decreased by 13% due to an 8% reduction in fleet capacity.
- The company targets positive Adjusted Corporate EBITDA by Q3 2025.
Hertz Global Holdings, Inc. (HTZ) announced substantial progress in its strategic transformation during the first quarter of 2025 despite reporting a 13% revenue decline to $1.813 billion, primarily attributed to a deliberate 8% reduction in fleet capacity. Notably, Hertz achieved a 45% decrease in vehicle depreciation year-over-year, a significant accomplishment under the company’s "Buy Right, Hold Right, Sell Right" strategy.
The strategic initiatives have also led to a $92 million improvement in direct operating expenses, underscoring the effectiveness of its "Back-to-Basics Roadmap." Over 70% of Hertz’s core U.S. rental fleet is now 12 months old or newer, reflecting a concerted effort to modernize and optimize fleet management.
Hertz remains on track to achieve a sub-$300 depreciation per unit (DPU) target earlier than expected, moving the goal from year-end to the second quarter of 2025. The company’s liquidity is bolstered by $1.2 billion in corporate resources and an extension of $1.7 billion in credit facility maturities to 2028.
CEO Gil West highlighted the comprehensive fleet management and cost-efficiency strategies as key to driving the company towards profitability. As a result, Hertz forecasts achieving a positive Adjusted Corporate EBITDA by the third quarter of 2025, reinforcing its path to long-term operational and financial stability.
