Hertz Stages High-Risk Turnaround After EV Debacle: Profits Return But Headwinds Loom
Overview
Hertz Global Holdings stands as a worldwide force in vehicle rentals but faces a crucial strategic crossroads. Following disastrous 2024 results—driven by EV investment pitfalls and severe depreciation charges—new management has shifted to a rigorous operational recovery plan. The Q2 2025 breakeven in adjusted EBITDA suggests progress, primarily from rapid cost improvements, not revenue gains. Whether this marks the start of lasting profitability or a fleeting reversal amidst deep risks is an open, pivotal question. The company’s turnaround prospects and value potential are weighed against fundamental challenges: heavy leverage, volatile used car markets, and the need for sustained operational discipline.