Hertz’s Q2 2025 revenue was in line with estimates, while EPS beat expectations; management flagged vehicle recalls as a headwind
- Hertz Q2 2025 revenue fell 7.1% y/y to $2.19 billion, in line with analysts estimate of $2.17 billion while EPS came in at -$0.34, above analysts estimate of -$0.45.
- Hertz said in the earnings call that pricing remained challenged during the quarter but is starting to improve.
- Hertz also said demand continues to improve.
- Like Avis Budget Group, Hertz is also affected by vehicle recalls, which impact about 2% of its fleet.
- Depreciation Per Unit Per Month (in whole dollars) fell 58% y/y to $251 million due to strong residual values achieved through fleet rotation.
Assessment
Hertz confirmed that vehicle recalls are a common problem and could affect Sixt’s infleeting for this summer and next year, especially if tariffs impact the supply of parts. This topic may be worth investigating further.