Hertz Global Holdings, Inc. (HTZ) saw its shares trade at $1.7350, up 11.22%, after reporting stronger second-quarter operating results. Revenue climbed to $2.4 billion, a 10% year-over-year increase, driven by stronger pricing, improved utilization, and continued progress in the company's broader transformation strategy.

Commercial Performance Drives Revenue Growth

Hertz generated its strongest second-quarter Revenue per Day (RPD) outside the pandemic-driven peak of 2022. RPD rose 9%, while Revenue per Unit (RPU) climbed 8% compared with the prior-year period. Strong pricing and disciplined airport fleet management underpinned the gains throughout the quarter.

Total utilization reached 79%, an increase of 80 basis points year over year. Excluding vehicles affected by elevated recall activity, utilization stood at 81%. Improved fleet efficiency supported higher revenue generation despite ongoing operational headwinds.

Adjusted Corporate EBITDA reached $81 million during the quarter, an improvement of $63 million from the same period last year and above the company's revised guidance. GAAP net income totaled $64 million, while adjusted net loss came in at $47 million due to ongoing transformation-related factors.

Fleet Strategy Offsets Operational Headwinds

Hertz reported Net Depreciation per Unit per Month of $302, in line with its revised quarterly guidance. Management expects the full-year figure to remain at or below $300. The company operates its youngest U.S. fleet in twelve years, with 94% consisting of 2025 and 2026 model-year vehicles.

Adjusted Direct Operating Expense per Day increased 4% year over year, driven by higher revenue-related variable costs and sale leaseback expenses. After adjusting for recalls and related operational impacts, normalized operating expenses improved approximately 2%.

Recall activity posed a significant operational challenge during the quarter, with affected vehicles increasing nearly 300% year over year. Approximately 15,000 vehicles were unavailable on average due to recalls. This reflects a broader industry pattern in which automaker recalls have intensified in recent years, creating fleet availability challenges for rental operators dependent on timely vehicle deployment. Nevertheless, the spread between Revenue per Day and operating expense improved 17%, marking the third consecutive quarterly increase.

Liquidity Strengthens as Transformation Expands

Hertz ended the quarter with approximately $984 million in available liquidity, consistent with previous guidance. During June, the company completed a $350 million exchangeable first lien notes offering, followed by an additional $30 million issuance in July, bringing pro forma liquidity above $1 billion.

The company's transformation strategy continues to extend beyond the traditional vehicle rental business. Hertz strengthened its franchise network and improved used vehicle retail operations through Hertz Car Sales, with the aim of enhancing long-term profitability and expanding commercial opportunities across multiple business segments.

The mobility division also recorded measurable progress through operating affiliate Oro Mobility. Drivers completed more than six million miles across four active markets. Oro expects to launch its first autonomous vehicle fleet partnership later this year through Uber's robotaxi program, using Lucid vehicles equipped with Nuro autonomous technology. The autonomous ride-hailing sector has attracted growing investment from multiple operators, with companies such as Waymo and Cruise expanding commercial services, positioning Hertz's affiliate partnerships as an early entry point into fleet provision for this emerging market.

Hertz remains one of the world's largest vehicle rental companies, operating the Hertz, Dollar, Thrifty, and Firefly brands across approximately 160 countries. The company continues to invest in fleet quality, commercial execution, and mobility services while improving its financial performance.