Avis Budget Group posted heavy losses in Q4 and full year of 2025, mostly because of a major adjustment tied to its U.S. electric vehicle rental fleet, the company stated in an earnings report released Feb. 19.

The company reported fourth-quarter revenue of $2.7 billion and a net loss of $856 million. For the full year ending Dec. 31, 2025, Avis Budget reported $11.7 billion in revenue and a net loss of $995 million, even as it cited continued year-over-year demand.

The biggest factor behind the losses was a fleet strategy change involving certain electric vehicles in the U.S., Avis stated in a news release.

During Q4, the company said it reviewed its approach to those EVs and decided to keep some of the vehicles for a shorter period than previously planned. That shift required Avis Budget to reduce the recorded value of those vehicles to better reflect their current market value.

The company recorded $518 million in impairment and related charges, which were reflected in both its Q4 and full-year results.

Avis Budget in December sold EVs to a joint venture and received $183 million in cash proceeds, tied to the monetization of tax credits related to those vehicles.

CEO Brian Choi said the company is using the weak quarter as a turning point heading into 2026.

“As we enter 2026, we’ve repositioned the business and turned a challenging fourth quarter into a catalyst for meaningful change,” Choi said in the news release. “We are tightening fleet discipline, strengthening our balance sheet, and raising the bar on customer experience to drive sustainable earnings growth.”

Avis Budget said fourth-quarter revenue totaled $2.7 billion. Revenue per day fell 2%, excluding exchange-rate effects, and rental days declined 1% compared with Q4 2024.

The company reported improvements in earnings across both major operating segments:

• Adjusted EBITDA in the Americas was $1 million, compared with a $63 million loss a year earlier, helped by lower fleet costs.

• Adjusted EBITDA in International was $21 million, compared with an $11 million loss a year earlier, helped by stronger revenue per day and lower fleet costs.

• Avis Budget also highlighted several balance-sheet moves during the quarter. The company said it issued $965 million in alternative funding asset-backed securities with a targeted two-year term and a maturity date of June 2028 and used the proceeds to pay down other fleet debt.

• At the end of the quarter, Avis Budget said it had about $818 million in liquidity, along with another $2.1 billion in fleet funding capacity.