Hertz Global Holdings provided an updated outlook for its second quarter 2026, anticipating that Adjusted Corporate EBITDA will be at the lower end of its prior expectations. The revision is primarily driven by unexpected softness in the used car market, which led to losses on vehicle sales in May. While top-line metrics like revenue and rental days remain strong, the impact on vehicle depreciation is significant.
Key Details
- Updated Guidance: The company now expects second quarter Adjusted Corporate EBITDA to be in the range of $50 million to $80 million.
- Primary Driver: The forecast was lowered due to losses on vehicle sales in May 2026, a reversal from gains in April, caused by a soft used car market.
- Financial Impact: Net Depreciation Per Unit (DPU) per month for the second quarter is now projected to be approximately $300.
- Operational Strength: Despite the EBITDA revision, revenue, fleet size, and rental days are expected to meet or slightly exceed previous expectations, supported by healthy demand.