Hertz Faces $1 Billion Impairment Charge in 2025 Q3 Loss Report
Discover how Hertz Global Holdings reported a significant $1 billion non-cash impairment charge in Q3 2025, impacting their financial results amid declining fleet residual values.
Essential Highlights
- Hertz Global Holdings announced a larger-than-anticipated loss for the third quarter of 2024.
- The company recorded a $1 billion non-cash impairment charge, attributed to a drop in fleet residual values over the past year.
- Earlier in 2024, Hertz also faced substantial charges related to the sale of 30,000 electric vehicles from its fleet.
In its Q3 2024 financial report, Hertz Global Holdings (HTZ) revealed a wider net loss than analysts expected, primarily due to a $1 billion non-cash asset impairment charge.
The rental car giant posted revenues of $2.58 billion, marking a 5% decline year-over-year and falling short of analyst consensus estimates compiled by Visible Alpha. Excluding the impairment charge, Hertz’s adjusted net loss stood at $208 million, or 68 cents per share, exceeding market expectations.
The impairment charge was driven by a "decline in fleet residual values over the last year or so," according to Hertz. The company also noted that its strategy to maximize revenue per unit (RPU) led to a decrease in rental volume.
Hertz’s stock initially dropped following the announcement but later rebounded, gaining around 3%. Nevertheless, shares have lost approximately two-thirds of their value in 2024, influenced by significant write-downs including the valuation of 30,000 electric vehicles earlier this year.
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