#USA #financial results #Estero, Florida #Hertz Global #car rental

Hertz Reports Fourth Quarter and Full Year 2024 Results

Hertz Global Holdings, Inc. (NASDAQ: HTZ) recently announced its financial performance for the fourth quarter and the entire year of 2024. Gil West, the CEO, emphasized that 2024 was a pivotal year focused on stabilizing the company and implementing significant changes to enhance its operational efficiency. West stated, "Our new leadership team and organizational structure are in place, positioning us effectively to execute our strategy with diligence and speed."

Financial Highlights

In Q4 2024, Hertz reported a revenue of $2.0 billion, alongside a GAAP net loss of $479 million, translating to a loss of $1.56 per diluted share. For the entire fiscal year, the company generated revenue of $9.0 billion but faced a significant GAAP net loss of $2.9 billion or $9.34 per diluted share.

In a successful long-term strategy, Hertz announced a complete reduction of 30,000 electric vehicles (EVs) in its fleet during 2023, accomplishing this objective ahead of schedule. The company reported a strong liquidity position with $1.8 billion available as of December 31, 2024.

Strategic Focus

Hertz aims to maximize revenue per unit (RPU) by enhancing the rental mix to prioritize high-revenue per day (RPD) business sectors while managing fleet capacity in line with market demand. The decline in RPU decreased from 7% year-over-year in the first quarter of 2024 to just 1% by the fourth quarter. Additionally, vehicle depreciation saw an improvement of 19% year-over-year in Q4 2024, contributing positively to the overall financial health of the company.

Despite these positives, higher-than-normal vehicle de-fleeting negatively impacted results. Hertz is undergoing a fleet rotation aimed at normalizing depreciation per unit (DPU), anticipated to be completed by the end of 2025, when it plans for DPU to settle below $300.

Moreover, operating expenses rose slightly by 2% compared to the same period the previous year, driven mainly by insurance cost challenges and adjustments in lease expenses. Overall, selling, general and administrative expenses saw a 9% decline year-over-year, thanks largely to reductions in personnel and advertising costs.

Operational Excellence

Hertz is actively pursuing an operational transformation, returning to core business fundamentals to strengthen its market position. This transformation is in full swing with a goal for substantial completion by the end of 2025. West expressed confidence in the company's trajectory, asserting, "The foundation we built in 2024 positions us to execute our transformation in 2025 and beyond, ensuring sustained value for our customers, employees, and shareholders."

Conclusion

Hertz's 2024 financial results showcase a resilient business model navigating through challenges while positioning itself strategically for growth. By emphasizing operational improvements and a renewed focus on customer experience, Hertz aims to enhance its reputation as a leading global car rental and mobility solutions provider.

For more details on Hertz's financial performance and future strategy, the company has provided a detailed earnings report that can be accessed via their investor relations website.