Hertz Misses Q1, Eyes Q3 Profit on Turnaround

Hertz Global Holdings reported a wider-than-expected first-quarter loss of $1.12 per share and a 13% year-over-year revenue decline to $1.81 billion, missing analyst estimates. The shortfall was primarily due to an 8% reduction in fleet capacity and weaker demand from corporate, government, and international customers, though leisure bookings increased. CEO Gil West highlighted cost controls, a newer and more efficient fleet, and significantly reduced vehicle depreciation as part of the company's turnaround efforts. Investor sentiment has been boosted by Pershing Square, led by Bill Ackman, acquiring nearly a 20% stake in Hertz, driving a sharp stock rally earlier in the year. Despite the disappointing quarter, Hertz maintains optimism about returning to positive adjusted EBITDA by the third quarter of 2025 and sees potential revenue growth if vehicle supply remains tight. Shares dropped sharply after the earnings release but are still up significantly year-to-date.