Related: Hertz Revenue Falls 3%
Hertz Swings to Profit; Revenue Drops 5%
For the full-year 2015, Hertz Global Holdings Inc. has reported total revenue of $10.5 billion, a 5% year-over-year decline. But its adjusted earnings were up 12% from 2014 at $1.49 billion.

Photo courtesy of The Hertz Corp.

Photo courtesy of The Hertz Corp.
Hertz Global Holdings Inc. has released its 2015 fourth quarter and full-year operating results.
For the full-year 2015, total revenue was $10.5 billion, a 5% year-over-year decline, according to Hertz. Adjusted net income was $360 million in 2015 — compared with an adjusted net loss of $254 million for 2014. Adjusted earnings were up 12% from 2014 at $1.49 billion.
In the fourth quarter, total U.S. car rental revenue was $1.41 billion, a decrease of 5% year-over-year. Hertz reported flat transaction days and a 5% decline in total Revenue per Transaction Day (RPD). The decline in pricing was due to competitive pricing in airport rentals and negative off-airport mix shift, says the company. Hertz reported adjusted earnings at $72 million for Q4, a $166 million improvement versus fourth quarter 2014; this was primarily driven by improved productivity and fleet management.
Hertz’s total revenues for Q4 were $2.41 billion, a 6% decline year-over-year. Adjusted earnings for Q4 was $266 million — compared to $76 million in fourth quarter 2014.
Foreign currency exchange rates had an unfavorable impact on Hertz's fourth quarter 2015 results as compared to the prior year period. The unfavorable impact of foreign currency exchange rates to total revenue in the quarter was approximately $75 million, and the unfavorable impact to net income for the period was approximately $6 million, according to the company.
"By fundamentally improving our fleet management and reducing costs throughout the business, we delivered on our expected outcome for the fourth quarter and the full year, despite a highly competitive pricing environment," said John Tague, Hertz’s president and CEO. "We are encouraged by rising customer satisfaction across our major brands, which reached record levels in the third and fourth quarters of 2015, as well as the pace of improvement in our cost structure.”
Hertz’s fleet management helped drive a 3 percentage point increase year-over-year in worldwide car rental fleet efficiency to 78%, says the company. In the U.S., car rental fleet efficiency rose to 79%, an increase of 4 percentage points versus fourth quarter 2014.
Worldwide Revenue per Available Car Day (RACD) increased by 1%, says Hertz. In the U.S., RACD was unchanged as higher fleet efficiency offset a 5% decrease in RPD.
As part of its cost reduction program, Hertz achieved savings of about $75 million during the fourth quarter. For the full-year, Hertz reported cost savings of approximately $230 million, says the company. In 2016, Hertz expects to achieve an additional $350 million in cost savings.
For full-year 2016, Hertz has revised its previously issued preliminary adjusted corporate earnings guidance; it’s been revised from a range of $1.7 billion to $1.8 billion to a range of $1.6 billion to $1.7 billion, says the company.
"Looking ahead, we continue to see soft pricing in the U.S. rental car market in the first quarter 2016 as well as continued weakness in upstream oil and gas markets affecting equipment rental, both of which are reflected in our outlook for 2016," said Tague. "In this environment, we will continue to focus internally on improving cost and quality as part of our commitment to our three-to-five year margin improvement plan."
More Rental Operations

Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
The Desk Upsell Is Costing Operators More Than it Earns
Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.
Read More →
U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius
The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.
Read More →
Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030
A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.
Read More →
Rental Car Fleet Sales Show Mid-Year Strength
June gains ensured rental fleets closed out the first half of 2026 in positive territory.
Read More →
Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
