Hertz narrows annual loss by $2B as fleet overhaul takes hold

Hertz Global Holdings (NASDAQ:HTZ) reported fourth-quarter and full-year 2025 results on Thursday, showcasing a massive operational recovery driven by disciplined fleet management and rigorous cost controls.

The Estero, Florida-based company reported a fourth-quarter net loss of $194 million, or 72 cents per share—a sharp improvement from the prior year’s levels.

For the full year, the net loss totaled $747 million, representing a more than $2 billion year-over-year improvement in profitability.

Revenue for the fourth quarter reached $2 billion, contributing to a full-year total of $8.5 billion.

Management highlighted that Revenue per Unit (RPU) and Revenue Per Day (RPD) metrics improved sequentially throughout the year, marking Hertz’s strongest year-over-year revenue momentum since early 2024.

The company attributed this to a favorable industry pricing environment and internal revenue management initiatives that have carried over into the first quarter of 2026.

A critical driver of the narrowed loss was the stabilization of fleet costs.

Depreciation per Unit per Month (DPU) plummeted 44% year-over-year to $330 in the fourth quarter, supported by a more disciplined fleet rotation strategy.

While results were tempered by a $60 million non-cash charge related to revised third-party residual value forecasts, the underlying trend suggests the heavy depreciation headwinds that plagued the company in previous quarters are subsiding.

Meanwhile, Hertz entered 2026 with $1.5 billion in liquidity and identified an additional $1 billion in potential liquidity enhancements.

Looking ahead, the company expects mid-single-digit revenue growth for the first quarter of 2026, bolstered by a continued rebound in travel demand and a more optimized vehicle mix.