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Avis Budget Group shares soar 9% as Q3 earnings and revenue top estimates

Published 27/10/2025, 21:10
© Reuters
CAR
0.29%

NEW YORK - Avis Budget Group, Inc. (NASDAQ:CAR) reported third-quarter earnings that significantly exceeded analyst expectations, sending shares soaring 9.7% as investors cheered the rental car company’s strong performance.

The company posted adjusted earnings per share of $10.11 for the third quarter, handily beating the analyst estimate of $8.24 by $1.87. Revenue came in at $3.52 billion, surpassing the consensus estimate of $3.46 billion and marking a return to growth compared to the same period last year.

Avis Budget Group’s stock jumped nearly 10% following the announcement, reflecting investor enthusiasm for the better-than-expected results.

"This quarter marked meaningful progress for Avis Budget Group as we returned to revenue growth while continuing to invest in our future," said Brian Choi, Avis Budget Group Chief Executive Officer. "We remain focused on leading the industry through innovation and a steadfast commitment to delivering an exceptional customer experience."

The company’s Adjusted EBITDA for the quarter was $559 million. In the Americas, Adjusted EBITDA reached $398 million compared to $384 million in the same period last year, driven by lower fleet costs and a 1% increase in rental days, partially offset by a 1% decrease in revenue per day.

International operations showed even stronger improvement, with Adjusted EBITDA rising to $190 million from $139 million in the third quarter of 2024. This growth was attributed to stronger revenue per day and lower fleet costs, despite a decrease in rental days.

The company also strengthened its financial position by amending its $1.1 billion floating rate term loan in July, extending the maturity date from August 2027 to July 2032. Avis Budget Group ended the quarter with a liquidity position of nearly $1.0 billion, with an additional $1.9 billion of fleet funding capacity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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