Q2 2026 Avis Budget Group Inc Earnings Call Transcript
Key Points
- Avis Budget Group Inc (CAR) achieved record second quarter utilization globally, with the Americas reaching the highest second quarter utilization level in company history at 73.2%.
- The company reported a 7.7% year-over-year growth in adjusted EBITDA in the Americas, despite a 1.9% decline in revenue, demonstrating strong operational leverage.
- Avis Budget Group Inc (CAR) successfully reached a settlement agreement with Pentwater, resulting in a $650 million cash recovery, which is expected to benefit shareholders.
- The partnership with Waymo has progressed with the launch of autonomous ride-hail operations in Dallas, marking a significant milestone in their autonomous vehicle strategy.
- Avis First, the premium rental offering, continues to expand and gain traction, with high customer satisfaction ratings and expansion to major airport locations.
- The company faced a softer-than-expected demand environment, with rental days in the Americas declining by 2.1% year-over-year.
- International segment revenues declined by 2.5% year-over-year, with adjusted EBITDA down 11%, pressured by higher variable costs and a challenging operating environment.
- Avis Budget Group Inc (CAR) experienced significant recall-related constraints, grounding approximately 18,000 vehicles, which represented over $50 million in costs year-to-date.
- The company had to adjust its fleet strategy due to a decline in forward bookings, resulting in a 5% reduction in fleet size year-over-year, the lowest since the COVID-19 pandemic.
- Despite efforts to optimize transaction economics, revenue per day (RPD) remained flat year-over-year, indicating challenges in achieving pricing growth.
Greetings. Welcome to the Avis Budget Group second quarter 2026 earnings call. Please note that this conference is being recorded. I will now turn the conference over to David Calabria, Treasurer and Senior Vice President, Corporate Finance.
Thank you, David. You may begin.
Good morning, everyone, and thank you for joining us. On the call with me are Brian Choi, our Chief Executive Officer and Daniel Cunha, our Chief Financial Officer.
Before we begin, I would like to remind everyone that we will be discussing forward-looking information. Including potential future financial performance, which is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements and information.
Such risks and assumptions, uncertainties and other factors are identified in our earnings release and other periodic filings with the SEC, as well as the Investor Relations section of our
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