Hertz Projects Q2 EBITDA at Low End of Range Due to Used Car Market Softness
HTZ sits 35% above its 52-week low of $3.775.
Summary
Hertz provided a preliminary Q2 2026 update, indicating strong demand and revenue but lower-than-expected profitability due to losses from used car sales.
Key Events · Earnings and Guidance · HTZ
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Preliminary Q2 2026 Outlook
Hertz expects Q2 fleet size, revenue, RPD, and rental days to meet or slightly exceed previous expectations, driven by healthy demand and better capacity utilization.
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Used Car Market Softness Impacts Profitability
The company realized losses on vehicle sales in May 2026, contrasting with gains in April, due to unexpected softness in the used car market. This will negatively impact net DPU per month, projected at approximately $300.
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Adjusted Corporate EBITDA at Lower End of Range
As a result of the used car market trend, Adjusted Corporate EBITDA is expected to be in the $50-$80 million range, which is within margin expectations but towards the lower end of the second quarter range.
Analysis · HTZ · Trade & Services
This 8-K provides an early look into Hertz's second-quarter performance, revealing a mixed financial outlook. While the company is experiencing healthy demand and strong revenue growth, unexpected softness in the used car market is significantly impacting profitability. The shift from gains to losses on vehicle sales in May will lead to higher depreciation costs (net DPU of approximately $300) and push Adjusted Corporate EBITDA towards the lower end of the $50-$80 million range. This update is critical for investors given Hertz's recent Q1 net loss and ongoing efforts to manage its debt, as it highlights a new headwind impacting its ability to generate profit despite strong operational performance.
At the time of this filing, HTZ was trading at $5.10 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $3.78 to $8.44. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.