Auto Rental News
MenuMENU
SearchSEARCH

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.

by Staff
March 1, 2016
Hertz Swings to Profit; Revenue Drops 5%

Photo courtesy of The Hertz Corp.

3 min to read


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.

Ad Loading...

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.

Ad Loading...

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

Two execs hold up a sign with Southwest and CarTrawler logos

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform

The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.

Read More →
Speaker John Healy on stage with a podium, screen, and red curtains in the background.
Rental Operationsby Martin RomjueMay 27, 2026

Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry

A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.

Read More →
Award winner on stage with presenters in front of yellow curtain.
Rental Operationsby Martin RomjueMay 27, 2026

Government Affairs Executive Wins Leading Rental Car Industry Award

Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.

Read More →
Ad Loading...
The rental car team at the Green Motion franchise office near the Maputo International Airport in Mozambique.

Green Motion Expands Its African Presence with Mozambique Launch

This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.

Read More →
Photos of CEOs Colm Brady and Francois Kruger on a blue background and above a headline.
Telematicsby News/Media ReleaseMay 22, 2026

RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech

Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.

Read More →
NextPass 407 ETR

NextPass Expands Toll Payment Service to Highway In Toronto

Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.

Read More →
Ad Loading...
A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

Zubie, PurCo Integrate Rental Damage Detection With Telematics

The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.

Read More →
50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026

LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

Read More →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
Ad Loading...