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1. The Marriott or Hilton of car rentals.

2. Essentially, Uber or Lyft, but you rent the car to drive yourself for days or weeks.

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• Hertz Vehicle Rental: Provides premium and general car and truck rental services to business and leisure customers globally.
• Dollar Vehicle Rental: Offers value-oriented car and truck rental services.
• Thrifty Vehicle Rental: Delivers affordable car and truck rental services.
• Used Car Sales: Sells retired vehicles from its rental fleet directly to consumers.

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Hertz Global (symbol: HTZ) primarily serves individuals for their transportation needs. While the company maintains significant business-to-business relationships (e.g., corporate accounts, insurance partnerships, ride-share programs), the ultimate consumer of the rental service is almost always an individual.

Therefore, Hertz's major customer categories are:

• Leisure Travelers: Individuals renting vehicles for vacations, holidays, weekend trips, and other personal travel needs. This segment often rents cars at airports or tourist destinations.
• Business Travelers: Individuals renting vehicles for work-related purposes, such as attending meetings, conferences, client visits, or temporary assignments. These rentals are frequently booked through corporate accounts or direct business programs.
• Local Market and Replacement Rentals: Individuals who need temporary transportation in their local area. This includes customers whose personal vehicles are undergoing maintenance or repair (often facilitated by insurance companies), those needing a vehicle for a specific task (e.g., moving, special event), and drivers participating in ride-sharing programs (e.g., Uber, Lyft) who rent vehicles for their work.

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• Tesla (TSLA)
• Polestar Automotive Holding UK PLC (PSNY)
• General Motors Company (GM)
• Ford Motor Company (F)
• Stellantis N.V. (STLA)
• Toyota Motor Corporation (TM)

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Gil West, Chief Executive Officer

Gil West has served as CEO of Hertz Global Holdings, Inc. since April 2024. Prior to joining Hertz, he was the Chief Operating Officer at Cruise, General Motors' autonomous vehicle subsidiary. He also spent a decade as Chief Operating Officer of Delta Air Lines, where he was responsible for global operations and a workforce of 70,000 employees. West holds an MBA from National University and a BS in Mechanical Engineering from North Carolina State University.

Scott Haralson, Executive Vice President and Chief Financial Officer

Scott Haralson was appointed Executive Vice President and Chief Financial Officer of Hertz Global Holdings, Inc. by the end of June 2024. He brings extensive financial experience from previous executive roles at Spirit Airlines, Dish Network, and Frontier Airlines.

Mike Moore, Executive Vice President, Chief Operating Officer

Mike Moore has served as Executive Vice President, Chief Operating Officer since September 2025, having joined Hertz in July 2024 as Executive Vice President Technical Operations. He is responsible for all aspects of Hertz's fleet operations and has over 25 years of experience in fleet operations and maintenance, with expertise in operational oversight and implementing process improvements.

Chris Berg, Executive Vice President and Chief Administrative Officer

Chris Berg joined Hertz Global Holdings, Inc. as Executive Vice President and Chief Administrative Officer in January 2025. In this role, he oversees administrative operations including procurement, real estate, facilities management, security, data science and analytics, technology, and human resources. Before joining Hertz, Berg spent over 20 years at Home Depot, most recently as President of the Western Division, where he oversaw operations for 500 stores and 100,000 employees. He holds an MBA from Babson F.W. Olin Graduate School of Business and a BS in Business Administration from Babson College.

Doria Holbrook, Executive Vice President Mobility

Doria Holbrook assumed the role of Executive Vice President Mobility in January 2025, leading Hertz Global Holdings, Inc.'s rideshare rental programs and strategic partnerships. Her career spans nearly two decades in operational and innovation roles, with prior executive experience at Flexport (VP of Global Supply Chain Partnerships), Cruise (VP Delivery Business Unit), TikTok, and Amazon. Holbrook began her career at McKinsey & Company and holds an MBA from Harvard Business School and a Bachelor of Science degree in Mechanical Engineering from Massachusetts Institute of Technology.

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The key risks to Hertz Global (HTZ) include:

1. Residual Value and Depreciation Risk, especially with Electric Vehicles (EVs): Hertz has faced considerable financial challenges due to vehicle depreciation, particularly stemming from its strategy to integrate electric vehicles into its fleet. The company has incurred significant write-downs and unexpected costs related to its EV fleet, with falling used car prices further exacerbating depreciation charges. A class action lawsuit has also been initiated, alleging misleading financial statements concerning vehicle values and EV demand.

2. High Debt Levels and Profitability Concerns: Hertz carries a substantial amount of long-term debt, with reported figures reaching billions of dollars. Despite recent improvements in adjusted corporate EBITDA, the company has struggled with consistent profitability, evidenced by negative operating and net margins. Financial health indicators, such as the Altman Z-Score, have placed Hertz in a "distress zone," indicating a potential risk of bankruptcy.

3. Cyclical Demand Risk and Market Competition: The car rental industry is inherently sensitive to economic fluctuations and changes in travel patterns, which can directly impact rental volume and pricing. Hertz also faces ongoing competition from traditional rivals as well as emerging mobility solutions like rideshare and peer-to-peer rental services. Additionally, supply chain disruptions can affect fleet availability and operational efficiency.

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1. Challenges with Electric Vehicle (EV) Transition and Fleet Management

Evidence: Hertz made a substantial investment in electric vehicles (primarily Teslas and Polestars) with a goal of having a significant portion of its fleet be EV. However, in January 2024, Hertz announced it would sell approximately 20,000 EVs from its U.S. fleet (about one-third of its EV fleet) and reinvest in gasoline-powered vehicles. The company cited higher-than-anticipated repair costs for EVs, particularly due to collision damage, and lower-than-expected depreciation which impacted resale values. This decision reflects a significant operational and financial challenge in managing an EV fleet.

Reasoning: This strategic reversal by Hertz indicates that the shift to an EV fleet presents clear emerging threats related to asset depreciation, maintenance expenses, and potentially lower demand or profitability compared to traditional internal combustion engine vehicles. Higher repair costs directly impact profitability, and volatile residual values can lead to unexpected losses on vehicle sales, both of which are critical to a car rental company's financial health. The difficulty in scaling charging infrastructure and ensuring a seamless customer experience for EV rentals also presents ongoing operational hurdles.

2. Growing Adoption of Peer-to-Peer Car Sharing Platforms

Evidence: Platforms like Turo have experienced significant growth in user base and market share. Turo, valued in the billions, offers a decentralized model where individuals rent out their personal vehicles directly to others. Its expansion into numerous cities and increasing brand recognition demonstrate its emergence as a viable alternative to traditional car rental services.

Reasoning: Peer-to-peer car sharing directly competes with Hertz's core business by offering a wider variety of vehicles (including unique or luxury cars), often more flexible pickup/drop-off locations (e.g., directly from the owner's driveway), and competitive pricing. This model appeals to a segment of consumers looking for convenience, specific vehicle types, or localized rentals outside of traditional airport locations, potentially eroding Hertz's market share, particularly in non-airport, short-term, or specialized rental segments. The ease of access and diverse offerings provided by these platforms could attract customers who previously relied on traditional rental agencies.

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The main product and service for Hertz Global (symbol: HTZ) is vehicle rental, including short-term and long-term car rental services for individual and corporate customers, operating under brands such as Hertz, Dollar, and Thrifty. Hertz also generates revenue from vehicle sales and value-added services like insurance and roadside assistance.

Addressable Market Sizes for Vehicle Rental Services:

Global Market

• The global car rental market was estimated at approximately USD 124.31 billion to USD 149.87 billion in 2024.
• Projections indicate the global market is expected to grow to between USD 252.94 billion and USD 347.23 billion by 2030-2032, with Compound Annual Growth Rates (CAGR) ranging from 10.5% to 13.70% during the forecast periods.

U.S. Market

• The U.S. car rental market was valued at approximately USD 35.2 billion in 2024.
• This market is projected to reach approximately USD 54.94 billion to USD 70.81 billion by 2032-2033, growing at CAGRs between 5% and 7.73% from 2025 to 2034.

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Hertz Global (HTZ) is focused on several key initiatives to drive future revenue growth over the next 2-3 years, as outlined in recent earnings reports and strategic commentary:

1. Fleet Transformation and Optimization: Hertz has completed a significant fleet refresh, with over 70% of its U.S. rental fleet now 12 months old or newer. This has contributed to record-high utilization rates, exceeding 84% in Q3 2025, the highest since 2018. The company's "Buy Right, Hold Right, Sell Right" strategy, aimed at disciplined fleet management and reducing depreciation per unit (DPU) to below $300 through 2026, is expected to enhance operational efficiency and profitability, indirectly supporting revenue growth by optimizing asset deployment.
2. Expansion of Hertz Car Sales and Digital Retail Partnerships: Hertz is diversifying its revenue streams by expanding its Hertz Car Sales platform, including digital e-commerce partnerships with companies like Cox Automotive and Amazon Autos. This initiative is designed to generate significant incremental margin benefits per vehicle compared to traditional wholesale channels. The "rent-to-buy" program, which boasts a 70% conversion rate, further demonstrates the potential for substantial revenue generation outside of core rentals.
3. Growth in Mobility Segment and Off-Airport Rentals: The company is strategically positioning itself as a broader mobility platform, with a focus on expanding its presence in the mobility segment, including ride-share partnerships, and growing its off-airport rental locations. Hertz is targeting a 10%-20% growth range in its mobility segment and anticipates mid-single-digit transaction day growth for 2026, indicating a shift towards diversified service offerings beyond traditional airport rentals.
4. Improved Customer Experience and International Market Strength: Hertz has reported a nearly 50% year-over-year increase in its North American Net Promoter Score (NPS), indicating a significant improvement in customer satisfaction. This enhanced customer experience is expected to foster loyalty and repeat business. Furthermore, the company has observed a strong pricing environment in its international segments, which is contributing to robust revenue per day (RPD) and revenue per unit (RPU) gains globally.

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