Hertz Global Holdings reported third-quarter total revenue of $2.5 billion, an increase of 12 percent year over year, with strong demand across leisure, corporate and rideshare, Hertz CEO Stephen Scherr said during a Thursday earnings call.
“The third quarter was characterized by continued strength in rate across all customer segments, with increased contribution of revenue from value-added services, and particularly strong pull-through of corporate demand,” Scherr said, adding that the company sees “no evidence of softness” based on current bookings.
Corporate volume reached 75 percent of pre-pandemic levels during the quarter, with forward bookings reflecting a continuation of the trend into the fourth quarter, Scherr added.
In addition, Hertz saw “considerable growth” from small and midsize businesses so far this year, but “larger global accounts accelerated during Q3 as these customers have only begun to increase their travel volume,” Scherr said. “In Q3, we renewed 100 percent of contracted corporate accounts open for renewal, and 93 percent of these renewals contained a price increase.”
Hertz third-quarter net income was $410 million, down year over year from $587 million. The company had more than 503,500 rentable vehicles, up 10 percent from the third quarter of 2021. Vehicle utilization was 80 percent. Total revenue per transaction day was $68.57 versus $66.15 a year prior.
The Americas reported total revenue of $2.04 billion, up 7 percent from $1.91 billion in Q3 2021. The company’s average number of rentable vehicles was nearly 397,500, up 7 percent. Vehicle utilization was 81 percent for the quarter, with total RDP $68.90, down 1 percent from $69.25.
During the quarter, Hertz signed a deal with GM to order up to 175,000 electric vehicles, adding to its EV orders from Tesla and Polestar. It also announced a partnership with BP to develop a U.S. EV charging station network.
[email protected] (Donna M. Airoldi)
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