Hertz’s second quarter results showed meaningful operational progress compared to last year, with management attributing improvements to disciplined fleet management and rigorous cost controls. CEO Wayne Gilbert West highlighted “positive adjusted corporate EBITDA for the first time in seven quarters,” driven largely by a smaller, younger fleet and improved vehicle utilization. Management emphasized the importance of their “Buy Right, Hold Right, Sell Right” strategy, which has led to higher proceeds from vehicle sales and lower depreciation expenses. While sales volumes declined, Hertz’s ability to optimize its asset mix and reduce direct operating costs per transaction day signaled early success in its transformation plan.

Is now the time to buy HTZ? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Hertz’s Q2 Earnings Call

• Chris Jon Woronka (Deutsche Bank): Asked about Hertz’s long-term positioning in autonomous vehicles (AVs) and robotaxis. CEO Wayne Gilbert West said Hertz expects to play a major role, leveraging its global fleet management and EV experience, but noted industry transformation will be incremental.
• Ryan Joseph Brinkman (JPMorgan): Inquired about recall impacts and the benefits of a younger fleet. West responded that Q2 recalls had minimal impact, but Q3 could see more disruption, with a younger fleet helping to mitigate exposure.
• John Michael Healy (Northcoast Research): Questioned the partnership with Cox Automotive and its effect on vehicle sales strategy. West explained the focus is on digitizing car sales, improving customer experience, and optimizing pricing using Cox’s data.
• Stephanie Lynn Benjamin Moore (Jefferies): Sought clarity on the updated EBITDA outlook and demand environment. CFO Scott Haralson cited delayed pricing improvements and early signs of demand recovery, but cautioned that more data is needed before revising forecasts.
• Dan Meir Levy (Barclays): Asked about future fleet size strategy and non-fleet debt plans. West emphasized profitable growth and gradual deleveraging through free cash flow and potential equity issuance, with fleet size remaining flexible until unit economics stabilize.

Catalysts in Upcoming Quarters

In the coming quarters, our team will monitor (1) the deployment and early results of Hertz’s new revenue management system, (2) sustained gains in operational efficiency and cost controls as fleet rotation continues, and (3) the pace of digital retail vehicle sales and loyalty program growth. We will also pay close attention to supply chain developments and how pricing recovery translates into margin expansion.

Hertz currently trades at $5.41, down from $5.58 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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