Shares of Hertz (HTZ) have climbed over 20% in the wake of the company’s second-quarter 2026 financial results disclosed on August 6, with the stock hovering near $2.22 per share.
Hertz Global Holdings, Inc., HTZ
The rental car giant posted an adjusted loss of $0.11 per share, significantly outperforming analyst expectations of a $0.23 loss. This represented a 52.2% favorable variance and demonstrated progress from the $0.29 adjusted loss recorded in the corresponding quarter of 2025.
Total revenue reached $2.40 billion, exceeding the Wall Street consensus of $2.28 billion by 4.9%. This figure represented a 9.7% year-over-year growth.
The revenue expansion was primarily attributed to favorable pricing dynamics. Revenue per day advanced 9% while revenue per unit increased 8%, despite Hertz managing a fleet that was 1% smaller compared to the same period last year.
Adjusted corporate EBITDA totaled $81 million, representing a $63 million improvement from the prior year. EBITDA margin expanded to 3.4% from a mere 0.8% in Q2 2025. These figures incorporated an estimated $30 million EBITDA drag stemming from heightened vehicle recall activity.
Looking ahead to the third quarter of 2026, Hertz has projected adjusted corporate EBITDA in the range of $275 million to $325 million with positive earnings per share anticipated. Transaction days are forecast to expand approximately 1% compared to the prior year.
The complete 2026 fiscal year outlook anticipates adjusted corporate EBITDA between $225 million and $275 million, with net depreciation per unit averaging approximately $300 monthly and transaction day growth of roughly 2%.
Hertz projects year-end 2026 liquidity between $1.0 billion and $1.4 billion, with positive free cash flow expected during the latter half of the year.
The company concluded Q2 with total cash, cash equivalents and restricted cash of $1.30 billion, up from $1.17 billion at year-end 2025. The quarter saw the generation of $381 million in net cash from operations and $162 million in adjusted free cash flow. Liquidity at quarter-end measured $984 million.
While the recent surge is noteworthy, broader context is essential. HTZ shares remain down 57.6% since January 2026 and trade 71.6% beneath the 52-week peak of $7.81 established in April 2026.
Direct vehicle and operating expenses climbed 4.3% year over year to $1.45 billion. Net depreciation of revenue-earning vehicles surged 17.3% to $487 million. Selling, general and administrative expenses grew 4.9% to $258 million, although as a percentage of revenue, SG&A showed modest improvement to 10.8% from 11.3%.
HTZ presently holds a Zacks Rank of 4 (Sell).
The stock had rallied nearly 30% in the trading session preceding the earnings-driven movement, indicating markets had begun incorporating optimistic expectations ahead of the official release.
Net depreciation per unit for the third quarter is anticipated to fall within the $285 to $295 per month range.
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