A fundamentally durable car-rental cash engine is executing a post-EV reset—while the stock trades in a short-squeeze orbit far above intrinsic value.
Overview
Avis Budget Group (CAR) is a global leader in car rental and car-sharing, operating across ~180 countries and ~10,000 locations with three core brands: Avis (premium, airport-focused), Budget (value segment), and Zipcar (membership-based urban car sharing), plus ancillary offerings like insurance waivers and add-ons that enhance margins. The revenue model is driven by rental days and revenue per day (RPD), supported by deep airport presence, global brand trust, and a digitally enabled customer experience (app-based skip-the-counter workflows). In FY2025, CAR generated ~ $11.7B in revenue, underscoring its scale. Entering 2026, the company is executing a “structural reset” after EV-related balance-sheet actions and is pivoting toward utilization and capital discipline to stabilize margins and reduce volatility.