On the Dash:
- Used-car pricing and fleet management remain critical to Hertz’s profitability and affect resale values.
- Higher vehicle depreciation and lower fleet utilization suggest dealers may see continued market pressure on used vehicles.
- Operational changes and selective fleet refreshes may influence demand for certain car models among rental and retail buyers.
On February 26, 2026, Hertz Global Holdings reported a fourth-quarter loss of 63 cents a share, missing analyst expectations of a 52-cent loss, as government shutdowns and softer used-car prices both affected results late in the year.
Although the loss was an improvement from the prior year, the expectations fell short of Wall Street estimates. The company said multiple external events collectively reduced earnings before interest, taxes, depreciation, and amortization (EBITDA) by more than $100 million. Factors included the government shutdown, flight cancellations, technology vendor outages, and higher-than-normal vehicle recalls. Adjusted EBITDA for the quarter was negative $205 million, compared with analysts’ projected loss of $97.5 million.
Hertz shares fell 1.5% at 10:17 a.m. in New York, bringing the stock’s year-to-date decline through Wednesday’s close to 14%.
Over the past year, Hertz has focused on streamlining operations, selling used vehicles more profitably, and refreshing its fleet with models in higher demand by both travelers and car buyers. The company aims to reduce vehicle depreciation costs, which remained above expectations at $330 per vehicle per month, while fleet utilization declined from recent quarters and compared with a year ago.
Looking ahead, Hertz expects improvement in the first quarter, projecting mid-single-digit revenue growth as revenue management initiatives and better pricing take effect. Revenue per day has already improved in January and February and is expected to continue into March.
“The improvements we’re seeing in the business are structural,” Chief Executive Officer Gil West said on a call with analysts.
