The Hertz Corporation, which operates the namesake brand and
Dollar and Thrifty vehicle rental brands, reported third-quarter revenue of
$2.7 billion, net income of $629 million and adjusted corporate EBITDA of $359
million.
"Hertz produced record revenue in the quarter,
reflecting ongoing strength in demand and stability in pricing. Our premium
Hertz brand performed well, and we saw further growth in our rideshare business
and progress in reinvigorating our value brands," said Stephen Scherr,
Chair and CEO of Hertz.
"We nonetheless remain focused on the cost side to
improve margins," Scherr continued. "Our ongoing investments will
give rise to better operating fundamentals, and with the growth opportunities
ahead of us, I am confident in the trajectory of our business and the forward
for Hertz. Across these efforts, we remain committed to delivering excellent
service to our customers while shaping the future of mobility."
The third-quarter revenue of $2.7 billion was a quarterly
record for the company characterized by continued strength in demand,
particularly in leisure and rideshare channels, coupled with pricing well above
pre-pandemic levels.
Hertz also reported that volume increased 16 percent
year-over-year while average fleet was up 11 percent, reflecting continued
fleet management optimization. Direct operating expenses, however, increased 17
percent compared to the third quarter of 2022, primarily in line with the
increase in volume.
Adjusted Corporate EBITDA was $359 million in the quarter,
reflecting a margin of 13 percent, while its adjusted free cash flow of $313
million reflected strength in demand and a reduction in fleet levels from the
summer peak.
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