Hertz Shifts Gears: Record Profits and Utilization Drive Rental Giant’s Comeback -( $HTZ )

Hertz (HTZ), a name most often associated with dodging airport shuttle buses and wrestling with trunk latches, has now shifted gears—and not just into reverse. The company just reported its best third-quarter results since 2018, apparently trading old rental car jokes for serious operational discipline and a touch of digital swagger. Revenue surged to $2.5 billion, driven by a “Back-to-Basics” strategy that, unlike most gym memberships, actually delivered results: $184 million in net income, positive EPS for the first time in two years, and enough adjusted EBITDA muscle ($190 million) to make Wall Street sit up straight.

Record Utilization, Fewer Parking Lot Tales

Hertz’s fleet utilization raced past 84%, a figure not seen since the pre-pandemic days of rampant suitcase inflation and questionable GPS routing. This wasn’t just statistical deja vu. By keeping its vehicles out of service shorter, Hertz achieved North America’s highest customer satisfaction scores in recent memory—a nearly 50% year-over-year leap, according to Net Promoter Scores. That’s no small feat for a company whose customer service reputation historically fell somewhere between airline meal reviews and lost-luggage hotline hell.

Fleet Refresh, Digital Dashboards—The New Road Trip

Under CEO Gil West, Hertz replaced its aging fleet with newer models, hitting depreciation per unit below $300—meaning cars are worth more, use less oil, and possibly smell less like mystery cologne. The digital transformation also rolled out, with a revamped Hertz app and plans for 65% of transactions to be digital by late 2025. If it sounds like Hertz is becoming part software company, you’re not wrong; the app just might be more reliable than the average GPS unit that says “arrived” two blocks from the terminal.

More Green, Less Drama

But it’s not all digital crusades and fleet swaps. Hertz has bumped up its eco-friendly vehicle offerings by 30% and signed partnerships to expand in untapped markets, positioning itself for the coming EV and mobility shakeups. The rental giant’s fleet is now mostly less than a year old, a milestone that would make any used-car manager weep with envy.

Humor in the Numbers

For investors, Hertz’s transformation story is a rare mix: strong revenue growth, a plan for $1 billion EBITDA by 2027, and enough liquidity ($2.2 billion) to buy a few airport sandwiches… or maybe one overpriced lounge pass. The only buzzkill? A mountain of $18.9 billion in debt remains, though bondholders are reportedly celebrating extension parties through 2028.

The Road Ahead

Hertz is shooting for the moon—or at least the 3-6% EBITDA margin stratosphere by 2026. If their operational discipline keeps up and supply chains don’t go on vacation, the company’s biggest hurdles may soon be convincing people the app won’t misplace your reservation and ensuring the rental lot snack machines actually work.

For now, Hertz’s road to redemption is paved with new cars, gleaming balance sheets, and a quiet promise that today’s rental experience might finally be less adventure and more arrival.

Record Utilization, Fewer Parking Lot Tales

Fleet Refresh, Digital Dashboards—The New Road Trip

More Green, Less Drama

Humor in the Numbers

The Road Ahead

Sources

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