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PARSIPPANY, N.J. - Avis Budget Group (NASDAQ:CAR) reported a larger-than-anticipated first quarter loss on Wednesday, sending shares down 5% in after-hours trading.
The car rental company posted a loss of $14.35 per share for Q1 2025, significantly wider than analysts’ expectations for a loss of $5.34 per share. Revenue came in at $2.4 billion, slightly below the consensus estimate of $2.5 billion and down 5% year-over-year.
Avis Budget attributed the disappointing results to higher fleet costs and lower revenue per day. The company recorded a $390 million non-cash fleet charge related to accelerated vehicle dispositions in its Americas segment.
"We made substantial progress on our fleet rotation strategy during the first quarter, disposing of a record number of vehicles," said CEO Joe Ferraro. "These actions will allow us to realize improved vehicle costs sooner than we anticipated."
Despite the wider loss, Ferraro noted that advanced reservations continue to trend positively. The company ended Q1 with over $1.1 billion in liquidity.
For the quarter, rental days decreased 1% year-over-year while revenue per day fell 2% excluding exchange rate effects. Vehicle utilization improved to 69.4%, up from 65.9% in Q1 2024.
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