Hertz (HTZ) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:20 PM CDT 40 min read

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Date

Thursday, May 7, 2026, astatine 9 a.m. ET

Call participants

• Chief Executive Officer — Gil West

• Chief Commercial Officer — Sandeep Dube

• Chief Financial Officer — Scott Haralson

Full Conference Call Transcript

Gil West, our Chief Executive Officer, who volition sermon strategy, operational highlights and our fleet. Our Chief Commercial Officer, Sandeep Dube, volition stock insights into our commercialized strategy. followed by Scott Haralson, our Chief Financial Officer, who volition sermon our fiscal performance. I'll present crook the telephone implicit to Gil.

Wayne West: Good morning, everyone, and convey you for joining us. I privation to commencement by recognizing the Hertz team. The hard work, subject and resilience they bring 4th aft 4th is what makes results similar Q1 possible. When we laid retired our translation strategy, we framed it astir 3 fiscal North Star metrics. Fleet Management measured by DPU beneath $300 a gross optimization measured by RPU implicit $1,500 and rigorous outgo power measured by DOE per time successful the debased $30. These are our guidepost connected a way to $1 cardinal EBITDA successful 2027.

Over the past 2 years, we fundamentally turned fleet from a headwind to a tailwind done our Buy right, clasp close merchantability close strategy with tangible sequential improvements that person compounded implicit time. We deed our DPU North Star people past twelvemonth and are tracking to deed it again this year. Over the past fewer quarters, we person besides been gathering dependable momentum connected revenue. and we're tracking to deed our North Star RPU people for afloat twelvemonth 2026. This quarter, the results amusement that our strategy is moving we acceptable assertive targets and we deed them. Adjusted firm EBITDA was up $141 cardinal year-over-year, a astir 50% improvement. Revenue was up 11% year-over-year and some bushed consensus.

It was, successful fact, our strongest year-over-year gross maturation successful 3 years. We delivered our strongest year-over-year Q1 RPD betterment since the question betterment successful Microchip driven spike successful 2022, we saw sequential improvements successful some RPU and RPD passim the quarter. A wide motion that the Hertz unsocial commercialized strategies are paying off, on with broader marketplace stream. These results are particularly meaningful fixed the situation we were operating in. The 4th brought headwinds, including elevated recalls, a partial authorities shutdown, higher TSA hold times and tempest disruptions crossed cardinal markets. Amidst this environment, our show underscores that this translation is driving structural improvements.