Three customer segments for Hertz showed "a lot of decrease" the first half of the year, but their declines have "plateaued out in June," Hertz chief commercial officer Sandeep Dube said during a Thursday morning earnings call.
Those segments are corporate, government and U.S. inbound, he said, adding each improved for Hertz in July.
Corporate segment bookings in 2025 through June were down mid-single digits year over year, but there was a three- to four-point improvement in July, he said. Government sector bookings were down 25 percent to 30 percent for the same period compared with last year, but recorded a five-point improvement in July.
For the inbound U.S. segment, there was positive demand from Asia-Pacific and Latin America, but reduced demand from Europe, the Middle East and Africa during the first six months of 2025. Inbound bookings from the EMEA region improved in July, and "net-net, inbound was actually positive by one point to two points from a demand perspective," Dube said. "Those trends, when we look at the early part of August, continue to improve."
Hertz Q2 Metrics
Hertz reported second-quarter revenue of nearly $2.2 billion, a 7 percent decrease year over year driven by a smaller fleet and challenges with pricing, according to the company.
"We had expected firmer pricing as we stepped into summer," Dube said. "However, the Q3 pricing environment started challenged, but the conditions are improving."
Dube added that pricing, however, presents an opportunity for the company, "starting with the transformation of our revenue management platform."
Hertz's current revenue management system was implemented in 2004 and "relies on outdated forecasting methods" and "lacks real-time data." The company has partnered with Amadeus to replace its legacy system.
"The new platform will introduce sophistication like what's seen in the airline industry, including real-time optimization, dynamic forecasting and integration with adjacent systems," Dube said. "Our next major upgrade remains on track for deployment at the end of Q3."
Hertz's quarterly net loss of $294 million was less than the $865 million loss reported a year prior.
Still, the company "reported our best results in nearly two years," Hertz CEO Gil West said. "For the first time in seven quarters, Hertz delivered positive adjusted corporate EBITDA. … [We] achieved the highest second-quarter retail vehicle sales in five years and had our highest fleet utilization in nearly two years."
Global revenue per day for the second quarter was $55.65, down 5 percent year over year. The Americas RPD was down 6 percent to $56.08, and international was down 2 percent to $53.93. Global vehicle utilization was 83 percent, up from 80 percent a year prior, with the Americas also at 83 percent (up from 81 percent) and international at 81 percent (up from 77 percent).
The Q2 average number of rentable vehicles decreased 6 percent nearly 512,900. In the Americas, that figure declined 7 percent to about 407,300. The international segment reported a 1 percent decline in average rentable vehicles to 105,500.
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