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Investing.com -- Car rental company Hertz Global Holdings reported its first quarterly profit in two years as tighter cost control and a refreshed vehicle fleet boosted margins and utilization.
Shares rose 15% in premarket trading.
The car rental company said third-quarter revenue rose to $2.5 billion from $2.41 billion a year earlier, topping Wall Street estimates.
Net income reached $184 million, or 42 cents per share, while adjusted earnings before interest, tax, depreciation and amortization climbed by about $350 million to $190 million.
Earnings per share of 12 cents beat analysts’ consensus by five cents, according to estimates compiled by analysts.
CEO Gil West said the quarter showed progress under Hertz’s “Back-to-Basics” strategy, which focuses on fleet efficiency and customer experience.
Utilization reached more than 84%, the highest since 2018, as the company cut vehicle downtime and optimized inventory.
Depreciation per vehicle averaged $273 per month, in line with Hertz’s target of staying below $300. The company said it has already secured vehicle procurement for model year 2026 and expects to maintain sub-$300 depreciation next year.
Hertz reported $250 million of positive free cash flow and ended the quarter with $2.2 billion in liquidity. Direct operating expenses fell 1% from a year earlier, and costs per rental day improved both sequentially and year-on-year.
The company also expanded its direct-to-consumer car sales platform, increasing retail fleet sales by 570 basis points in 2025 compared with the same period last year.
West said the company is building a “new platform for growth” as it continues its transformation to operate profitably across different segments of the mobility market.