Avis Budget Group (NASDAQ:CAR) shares declined on Tuesday after the company reported second-quarter financial results. Here’s what you need to know from the report.
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What To Know: Avis reported second-quarter revenue of $3 billion, missing analyst estimates of $3.02 billion. The company reported second-quarter adjusted earnings of 10 cents per share, missing estimates of $1.75 per share, according to Benzinga Pro.
Avis highlighted net income of $5 million, alongside adjusted EBITDA of $277 million. The company reported a 1% decrease in revenue per day, excluding exchange rate effects, while rental days remained flat compared to the same period last year.
Adjusted EBITDA in the Americas rose to $220 million from $186 million, driven by lower fleet costs and increased vehicle utilization. The international segment saw a significant improvement in adjusted EBITDA, reaching $82 million compared to $48 million last year, due to stronger pricing and better vehicle utilization.
Avis Budget Group’s liquidity position was nearly $950 million at the end of the quarter, with an additional $1.7 billion in fleet funding capacity.
“At Avis Budget Group, we’re building to scale where we hold structural advantages. With Avis First, we’ve created the category of first-class car rental; designed through product innovation and delivered with operational excellence,” said Brian Choi, CEO of Avis Budget Group.
“With our Waymo partnership, we’re stepping into the autonomous future as a critical enabler of next-generation fleet management.”
Tuesday morning, Avis announced a multi-year strategic partnership with Waymo. The company will serve as Waymo’s fleet operations partner in Dallas. Initial testing is underway and a public launch is planned for 2026.
CAR Price Action: Avis Budget Group shares were down 4.23% at $195.25 during after-hours trading on Tuesday, according to Benzinga Pro.
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