Hertz Global Holdings, Inc. Q3 FY2025 earnings call

Wayne West's Statements - Thanked teams for summer work, disciplined execution moving transformation forward. - Achieved $2.5B revenue, $190M adjusted EBITDA, positive EPS. - Fleet refresh complete, average age under 12 months, record utilization. - Net Promoter Score rose near 50% in NA. - Sub-$350 DPU goal maintained, DOE per day lowered. - Hertz car sales transformed with rent-to-buy and digital retail partnerships. ### Sandeep Dube's Statements - Sequential revenue, RPU, RPD improvement, record utilization. - Focus on customer experience, app bookings up 800bps, loyalty member enrollments up over 90%. - Diversified durable demand with off-airport and rideshare, RPU and EBITDA accretive. - Advanced revenue management, improved pricing curve. ### Scott Haralson's Statements - Revenue $2.5B, adjusted EBITDA $190M, positive EPS. - Q4 guidance updated to negative low to mid-single digits EBITDA margin. - 2026 target 3%-6% EBITDA margin, mid-single-digit growth in transaction days, growth in off-airport and mobility segments.

In the third quarter, Hertz achieved $2.5 billion in revenue and adjusted corporate EBITDA of $190 million. The U.S. fleet was refreshed, with an average age under 12 months. Hertz car sales transformed into a profit accretive engine, with a rent-to-buy program available in over 100 cities and a 70% conversion rate of rent-to-buy customers to buyers. Revenue contribution from car sales and other segments like off-airport and mobility is part of the diversified platform.

Q4 - Expected transaction days flat year-over-year, lower DOE per day by ~5% (excluding large true-up expense). - Updated guidance to negative low to mid-single digits EBITDA margin. ### 2026 - Target 3%-6% EBITDA margin. - Mid-single-digit growth in transaction days. - Growth in off-airport business mid-to-high single digits, mobility business 10%-20% growth.

• External system outages in Q4 costing $10M-$20M. - Fleet recalls impacting utilization in Q4. - Government shutdown impact on business.

Q: Chris Woronka asked about the value-creating mobility platform and how it creates value beyond the traditional rental business.

A: Wayne West explained it includes car sales, service, and mobility, with car sales having strategic advantages like owned inventory, rent-to-buy program, and digital retail partnerships; service has potential to monetize core competency; mobility includes rideshare and AV piloting.

Q: Chris Stathoulopoulos inquired about the outlook for sub-300 DPU in 2026.

A: Wayne West and Scott Haralson mentioned stable residuals, good pricing on 2026 models, channel management of vehicle disposal, and benefit from Hertz car sales affecting DPU.

Q: Ian Zaffino asked about international inbounds, corporate, and off-prem strategy.

A: Sandeep Dube said Q3 had improved demand profile, corporate and leisure demand uptick, inbound demand improved but still down, and off-prem has growth opportunities with demand generation and commercial engine.

Q: Stephanie Moore asked about hitting the high end of the 2026 margin range.

A: Scott Haralson said it depends on scaling Hertz car sales flow-through, aiming for north of 75%-80% to drive value.

Q: Dan Levy asked about fleet growth and utilization.

A: Wayne West and Sandeep Dube said fleet growth is disciplined across segments, airport growth at GDP-like levels, off-airport and mobility growing faster; utilization was near record, sustainable with operational processes and demand generation, and more room to run with improved car sales processes.