HERTZ REPORTS SIGNIFICANT PROGRESS TOWARDS KEY MILESTONES FOR FIRST QUARTER 2025

Highlights  

• The fleet rotation is delivering results, with vehicle depreciation down 45% year-over-year, due to the "Buy Right, Hold Right, Sell Right" strategy:
    
  • The Company is targeted to meet sub $300 depreciation per unit ("DPU") faster than expected. This is now forecasted to be achieved in the second quarter, with model year 2025 vehicles already achieving this target
    
    
  • More than 70% of the core U.S. rental fleet is 12 months old or newer 
    
    
  • Record quarter for retail vehicle sales including Hertz Car Sales 
    
    
• The Company achieved a $92 million year-over-year improvement in direct operating expenses which was a result of cost control initiatives, supported by the strategic fleet rotation.  

• The Company remains on track to achieve positive Adjusted Corporate EBITDA by the third quarter of 2025.

• As of March 31, 2025, Hertz had $1.2 billion in corporate liquidity. In May 2025, Hertz extended the maturity of $1.7 billion of its First Lien revolving credit facility ("RCF") maturities to June 2028.

Overview

Hertz initiated a comprehensive strategic transformation one year ago under CEO Gil West. 

Under Mr. West's leadership and a newly appointed executive team, Hertz established its "Back-to-Basics Roadmap" anchored by three core financial pillars: fleet management, revenue optimization and cost efficiency. This strategic reset is significantly improving operational performance, establishing a stronger financial foundation, and positioning Hertz for long-term value creation. 

The Company remains focused on its profitability initiatives; rotating its fleet, normalizing DPU, and improving its cost structure. Hertz's objectives remain unchanged: to achieve DPU below $300, revenue per unit ("RPU") above $1,500 and direct operating expense ("DOE") per transaction day in the low $30s.      

Fleet and Retail Sales Strategy

The Company recognized the fleet as the most dominant economic lever and began a refresh in 2024, replacing older, less customer-preferred models with newer vehicles offering lower operating costs and improved depreciation performance. Hertz's approach is guided by its disciplined fleet strategy - "Buy Right, Hold Right, Sell Right". This approach prioritizes acquiring vehicles at favorable prices, aligning fleet composition with customer preferences, and maximizing residual values through retail channel sales, particularly the Company's own Hertz Car Sales. 

Under the "Buy Right" pillar, the Company proactively worked to secure model year 2025 buys ahead of the tariff implementation which proved to be a prudent move as this group of vehicles has a collective DPU of less than $300. 

The impact of this proactive rotation is evident. In the first quarter of 2025, vehicle depreciation decreased 45% year-over-year and DPU for the quarter was $353, a meaningful improvement both sequentially and year-over-year. While the Company previously guided to sustainable DPU under $300 by the end of 2025, the favorable residual values and strong performance from model year 2025 vehicles have the Company on track to achieve this target in the second quarter of 2025.

Through "Hold Right", over 70% of the Company's core U.S. rental fleet is 12 months old or less, enabling it to maintain a newer, desirable fleet for customers while retaining flexibility to manage through market volatility. 

As one of the world's largest used car dealers, Hertz is prioritizing retail as its primary vehicle sales channel, with Hertz Car Sales playing a leading role. As a cornerstone of the Company's "Sell Right" strategy, this is key to maximizing value and improving unit economics. By leaning into retail over wholesale, in March 2025 Hertz also began to benefit from tariff-driven pricing dynamics, with used car prices rising and DPU declining. As such, the Company delivered its strongest-ever quarter for retail vehicle sales in the first quarter of 2025. To build on this momentum, Hertz is expanding its retail footprint, deepening strategic partnerships, and increasing visibility of the Hertz Car Sales brand.

Revenue and Demand Environment

Revenue was down year-over-year driven primarily by reduced fleet capacity. The Company continues to manage its fleet prudently, which was down 8% year-over-year in the first quarter. Given macro demand uncertainties, it is intentionally running a tighter fleet year-over-year while capitalizing on the strong residual value environment to accelerate the rotation of its remaining older vehicles. The focus is to offset some of the fleet reduction through higher utilization and "sweating the assets" with more days. RPU declined 3% year-over-year due to the timing of the Easter holiday and Leap Year, as well as a margin-accretive shift in fleet mix to better align with customer booking behavior. Utilization was up 240 basis points year-over-year and would have been stronger if not for temporary headwinds from accelerated in-fleeting.

Looking forward, the Company sees both macroeconomic uncertainty and opportunity. The Company has recently seen demand moderate for corporate, government and U.S. inbound segments while forward bookings for Hertz leisure are up year-over-year. The Company intends to remain prudent in its fleet management, entering the summer with a relatively tight fleet, and thereby leveraging rising residual values.  As always, the Company will remain nimble as it assesses the changing demand environment. Macroeconomic opportunity lies in the upside revenue potential which has historically followed periods of constrained vehicle supply. Prior supply constraints resulting from the 2008 Financial Crisis and, most recently, the COVID pandemic, have consistently driven significant revenue per day ("RPD") gains throughout the industry.

In the rest of 2025 and into 2026, the Company is focused on fundamentally improving the durability and margins of the business.

• First, the Company is making foundational changes to its revenue management system which are expected to be meaningfully margin-accretive.

• Second, the Company is continuing to build the foundations for improved demand generation within the off-airport and mobility business units. The Company expects to achieve improved resilience during lower demand seasons and economic cycles, while also improving RPU by leveraging greater options for demand selection. Further diversification of the Company's revenue streams should lead to greater resilience and improved margins over time. 

• Third, the Company is already driving a greater mix of durable demand segments such as direct sales through owned websites, thereby improving RPD mix, and expects to gain further traction.

• Fourth, the Company is enhancing its customer experience. By the end of the first quarter of 2025, Net Promoter Scores improved by 11 points year-over-year, demonstrating operational excellence across its global footprint. Equally encouraging, loyalty enrollments were up 11% year-over-year in the first quarter of 2025, and this is starting to translate into increased loyalty bookings. 

Cost Management  

The Company's cost control efforts, which have been supported by its fleet refresh activities, have contributed to an improvement in DOE in the first quarter of 2025 of $92 million year-over-year. On a per day basis, DOE in the first quarter of 2025 was down 4% quarter-over-quarter, despite lower volume. Year-over-year, DOE per day was down 1% on a volume adjusted basis. The Company is partnering with a global leader in AI-driven vehicle inspection systems, which it expects will improve the efficiency and accuracy of vehicle maintenance and damage collections, while also providing a more transparent, digital-first experience for customers. In the first quarter of 2025, excluding the impact of stock-based compensation awards forfeited in the prior-year quarter, selling, general and administrative costs also decreased year-over-year.  

Collectively, these efforts are expected to significantly improve the Company's results and position it to return to positive Adjusted Corporate EBITDA by the third quarter. 

Recent Transactions 

In May 2025, the Company amended its First Lien Credit Agreement to extend the maturity date of  $1.7 billion of commitments under its existing $2.0 billion First Lien RCF from June 2026 to March 2028, subject to a springing maturity date (as defined in the First Lien Credit Agreement), and to make certain other amendments to the First Lien Credit Agreement. Hertz will have access to up to $2.0 billion under the First Lien RCF until June 2026, and thereafter the aggregate amount of commitments under the First Lien RCF is $1.7 billion until March 2028, after giving effect to the amendment. The principal financial terms of the amended facilities are essentially unchanged.

Also in May 2025, the Company completed the following transactions with regard to its U.S., Europe and Canadian vehicle debt facilities:

• Extended $2.9 billion of maturities under the HVFIII Series 2021-A variable funding notes to May 2027, demonstrating strong market acceptance and competitive pricing buoyed by favorable U.S. RAC fleet values. As of March 2025, the fair market value (FMV) of the fleet in the ABS was $9.2 billion versus ABS net book value (NBV) of $8.8 billion and the three-month average FMV was ~105% of NBV

• Extended maturities for €1.2 billion of its European ABS to April 2027

• Extended the maturity of its Canadian Securitization to April 2027

Overall, these transactions improve the Company's capital structure and maturity ladder, and de-risks the balance sheet, providing flexibility for the Company to continue its transformation. 

SUMMARY RESULTS

EARNINGS WEBCAST INFORMATION

Hertz Global's live webcast and conference call to discuss its first quarter 2025 results will be held on May 13, 2025, at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company's investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to Hertz Q1 2025 earnings teleco registration, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS

In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.

ABOUT HERTZ

Hertz Global Holdings Inc. is one of the world's leading car rental and mobility solutions providers. Its subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the US, and the Hertz 24/7 car sharing business in Europe. For more information about Hertz, visit www.hertz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS   

Certain statements contained or incorporated by reference in this release, and in related comments by the Company's management, include "forward-looking statements." Forward-looking statements are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, economic and industry conditions and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company's actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.

Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things.

• mix of program and non-program vehicles in the Company's fleet, which can lead to increased exposure to residual value risk upon disposition;
• the potential for residual values associated with non-program vehicles in the Company's fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;
• the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;
• the Company's ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company's returns;
• the age of the Company's fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company's ability to sell vehicles at acceptable prices and times;
• disruptions in the supply chain, including in connection with any increases in tariffs or changes in tariff policies or trade agreements;
• whether a manufacturer of the Company's program vehicle fulfills its repurchase obligations;
• the frequency or extent of manufacturer safety recalls;
• levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
• seasonality and other occurrences that disrupt rental activity during the Company's peak periods, including in critical geographies;
• the Company's ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company's rental operations accordingly;
• the Company's ability to implement its business strategy or strategic transactions, including the Company's ability to implement plans to support a modern mobility ecosystem;
• the Company's ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs;
• the Company's ability to adequately respond to changes in technology impacting the mobility industry;
• significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;
• the Company's reliance on third-party distribution channels and related prices, commission structures and transaction volumes;
• the Company's ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;
• the Company's ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
• the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
• the Company's ability to attract and retain effective front-line employees, senior management and other key employees;
• the Company's ability to effectively manage its union relations and labor agreement negotiations;
• the Company's ability to manage and respond to cybersecurity threats and cyber attacks on the Company's information technology systems or those of the Company's third-party providers;
• the Company's ability, and that of the Company's key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;
• the Company's ability to evaluate, maintain, upgrade and consolidate its information technology systems;
• the Company's ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks;
• risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company's ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
• risks relating to tax laws, including those that affect the Company's ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
• the Company's ability to utilize its net operating loss carryforwards;
• the Company's exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;
• the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses or taxes, among others, that affect the Company's operations, the Company's costs or applicable tax rates;
• the risk of an impairment of the Company's long-lived assets, which risk could be impacted by, among other things, the timing of our fleet rotation;
• the Company's ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;
• the potential for changes in management's best estimates and assessments;
• the Company's ability to maintain an effective compliance program;
• the availability of earnings and funds from the Company's subsidiaries;
• the Company's ability to comply, and the cost and burden of complying, with corporate and social responsibility regulations or expectations of stakeholders, and otherwise advance the Company's corporate responsibility priorities;
• the availability of additional, or continued sources, of financing at acceptable rates for the Company's revenue earning vehicles and to refinance the Company's existing indebtedness, and the Company's ability to comply with the covenants in the agreements governing its indebtedness;
• the extent to which the Company's consolidated assets secure its outstanding indebtedness;
• volatility in the Company's share price, the Company's ownership structure and certain provisions of the Company's charter documents, which could, among other things, negatively affect the market price of the Company's common stock;
• the Company's ability to implement an effective business continuity plan to protect the business in exigent circumstances;
• the Company's ability to effectively maintain effective internal control over financial reporting; and
• the Company's ability to execute strategic transactions.

Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.