Hertz Global returned to profitability in the third quarter after nearly two years, driven by stronger used vehicle sales and a refreshed rental fleet, the company said on Tuesday. The results sent its shares soaring 42% as investors welcomed the turnaround.
The car rental company has been working to diversify its operations amid a slowdown in travel demand by overhauling its fleet and expanding its fully online car-buying platform.
In recent years, Hertz scaled back its electric vehicle lineup, selling off much of its Tesla fleet due to higher repair costs and replacing them with gas-powered models to better align with current rental trends.
Hertz reported adjusted earnings of 12 cents per share for the third quarter, far exceeding analysts’ expectations of 2 cents per share, according to LSEG data.
While overall revenue declined 4% year-on-year to about $2.5 billion, it still surpassed estimates of $2.4 billion, signaling that Hertz’s strategic shift toward a newer and more efficient fleet is beginning to pay off.
