Hertz Global Stock Rises 12.4% Since Q2 Earnings Release

Revenues of $2.40 billion beat the consensus estimate of $2.28 billion by 4.9% and increased 9.7% year over year. Growth was driven by strong pricing execution, with revenues per day up 9% and revenues per unit rose 8%, while the company operated with a 1% smaller fleet.

The impressive results had a positive impact on the market, as the company’s shares have risen 12.4% since the earnings release on Aug. 6.

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Adjusted corporate EBITDA was $81 million, up $63 million from the prior-year quarter. Adjusted corporate EBITDA margin improved to 3.4% from 0.8% a year earlier. The results included an estimated $30 million EBITDA headwind from elevated vehicle recalls.

Direct vehicle and operating expenses increased 4.3% year over year to $1.45 billion. Net depreciation of revenue-earning vehicles and lease charges rose 17.3% to $487 million, while selling, general and administrative expenses increased 4.9% to $258 million. As a percentage of revenues, SG&A improved to 10.8% from 11.3%.

HTZ's Key Balance Sheet and Cash Flow Figures

HTZ exited the second quarter with total cash, cash equivalents and restricted cash and cash equivalents of $1.30 billion compared with $1.17 billion at the end of 2025. The company generated $381 million of net cash from operating activities and $162 million of adjusted free cash flow during the second quarter. Quarter-end liquidity was $984 million.

HTZ's 2026 Guidance

For the third quarter of 2026, Hertz expects adjusted corporate EBITDA of $275 million to $325 million and positive earnings per share. Transaction days are projected to increase approximately 1% year over year, while net depreciation per unit is expected to range from $285-$295 per month.

For full-year 2026, the company expects adjusted corporate EBITDA of $225 million to $275 million, net depreciation per unit of approximately $300 per month and transaction days growth of approximately 2%. Hertz expects to end 2026 with liquidity between $1.0 billion and $1.4 billion and anticipates positive free cash flow in the second half of the year.

Currently, HTZ has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.

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This article originally published on Zacks Investment Research (zacks.com).

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