Q3 2025 Hertz Global Holdings Inc Earnings Call

November 4, 2025

By now you should have our earnings press release and associated financial information. We've also provided slides to accompany our conference call and these can be accessed through the Investor Relations section of our website.

Speaker #1: I would like to remind you that this morning's call is being recorded by the company. I would now like to turn the call over to our host, Johann Rawlinson, Vice President of Investor Relations.

Want to remind you that certain statements made on this call contain forward looking information forward looking statements are not a guarantee of performance and by their nature are subject to inherent risks and uncertainties actual results may differ materially.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and thank you for joining us. For now, you should have our earnings press release and associated financial information. We've also provided slides to accompany our conference call, and these can be accessed through the Investor Relations section of our website.

Any forward looking information relayed on this call speaks only as of today's date and the company undertakes no obligation to update that information to reflect trends circumstances additional.

Speaker #2: I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not a guarantee of performance, and by their nature, are subject to inherent risks and uncertainties.

Information concerning these statements, including factors that could cause our actual results to differ is contained in our earnings press release and in the risk factors and forward looking statements section in the filings that we make with the Securities and Exchange Commission filings are available on the Sec's website and the investor.

Speaker #2: Actual results may differ materially. Any forward-looking information relayed on this call speaks only as of today's date. In the company undertakes no obligation to update that information to reflect changed circumstances.

Relations section of the Hertz website.

Speaker #2: Additional information concerning these statements—including factors that could cause our actual results to differ—is contained in our earnings press release and in the risk factors and forward-looking statement section in the filings that we make with the Securities and Exchange Commission.

Today, we'll use certain non-GAAP financial measures, which are reconciled with GAAP numbers in our earnings press release and earnings presentation available on the website.

We believe that these non-GAAP measures provide additional useful information about our operations, allowing better evaluation of our profitability and performance.

Speaker #2: Our filings are available on the SEC's website, and the Investor Relations section of the HERTZ website. Today, we'll use certain non-GAAP financial measures, which are reconciled with GAAP numbers, in our earnings press release and earnings presentation available on the website.

Unless otherwise noted our discussion today focuses on our global business.

On the call. This morning, we have Joe West, our Chief Executive Officer, who will discuss strategy operational highlights and our fleet.

Speaker #2: We believe that these non-GAAP measures provide additional, useful information about our operations, allowing better evaluation of our profitability and performance. Unless otherwise noted, our discussion today focuses on our global business.

Our chief commercial officer, and deep Dubai will then share insights into our commercial strategy, followed by Scott Haralson, Our Chief Financial Officer, who will discuss our financial performance and liquidity.

Speaker #2: On the call this morning, we have Gil West, our Chief Executive Officer, who will discuss strategy, operational highlights, and our fleet. Our Chief Commercial Officer, Sandeep Dube, will then share insights into our commercial strategy, followed by Scott Haralson, our Chief Financial Officer, who will discuss our financial performance and liquidity.

I'll now turn the call over to Gil.

Ron.

Want to start by thanking our teams for their exceptional work this summer.

Our disciplined execution is moving this transformation forward and I'm grateful for their continued commitment of delivering for our customers everyday worldwide.

We said it would take consistent.

Speaker #2: I'll now turn the call over to Gil.

Dedicated effort to rebuild this company's foundation no matter of the macro environment by focusing on what we can control disciplined fleet management revenue optimization and rigorous cost control and that is exactly what's happening.

Speaker #3: Thanks, Johann. I want to start by thanking our teams. For their exceptional work this summer, their disciplined execution, is moving this transformation forward. And I'm grateful for their continued commitment of delivering for our customers everyday worldwide.

This quarter, we achieved $2 5 billion in revenue and delivered adjusted corporate EBITDA of $190 million.

Speaker #3: We said it would take consistent, dedicated effort to rebuild this company's foundation, no matter the macro environment, by focusing on what we can control.

$350 million year over year improvement and positive EPS for the first time in two years.

Speaker #3: Disciplined fleet management, revenue optimization, and rigorous cost control. And that is exactly what's happening. This quarter, we achieved $2.5 billion in revenue and delivered adjusted corporate EBITDA of $190 million.

In Q3, we completed our transformative fleet refresh.

Hitting another major milestone and setting a new standard for ourselves in the lifecycle of our vehicles with our younger fleet.

We also achieved a record high utilization rate since 2018.

While we cannot control at 2% of our U S fleet was under recall being able to drive record utilization in that environment shows that even when headwinds get in the way, we're able to deliver strong results.

Managing with rigor also means keeping our customers at the center of everything we do.

Our net promoter score continues to rise up nearly 50% year over year in North America with measurable improvement in ease of rental and confidence and vehicle quality.

Fundamentally hurts as an asset management company built on a century of buying renting and selling vehicles at scale.

That's why we set Northstar metrics to guide the improvements to our core rental business and ensure operational excellence comes first.

This quarter, we maintained our sub $350 GPU goal overcame cost headwinds and inflation to lower Boe per day, both year over year and sequentially, while continuing to execute initiatives that are driving us closer to the low $30.

And made solid progress towards our annual target <unk> of over $1500.

These results continue last quarter's momentum and show we're doing what we said we'd do our progresses study our heads are down but our eyes are on the horizon.

Transforming a 100 year old company requires executing with discipline today, while building testing and innovating for tomorrow Thats why our norstar metrics arent the finish line there to stay.

<unk>, we're putting in the ground to rebuild our foundation.

Through this work, we're sharpening our skills and enhancing our systems and creating a platform for growth.

While our near term priority remains transforming our rental car business with operational rigor and a relentless customer focus we're simultaneously laying the groundwork for diversified value creating platform.

That platform spans four strategic areas rent a car.

<unk>.

Service and mobility.

Today these fuel our core rental business, but we see unique opportunities for each the scale and synergies between them all unlocking new revenue streams across the entire enterprise.

It's still early but the actions we're taking are already reviewing what a bright future for hertz looks like.

Well, let's start with the fleet a powerful economic lever.

We've transformed our fleet from a headwind to our competitive advantage by continuing to hone our skills sourcing vehicles optimally deploying them effectively and monetizing them strategically.

Our U S fleet is newer and more aligned to customer preference and it's been in years.

The refresh complete our average fleet age is now under 12 months and we're positioned to sustain our modern fleet aligned with our GPU Northstar metric.

It's still early but the actions we're taking are already reviewing what a bright future for hertz looks like.

Today, these fuel are core rental business, but we see unique opportunities for each to scale and synergies between them all unlocking, new revenue streams across the entire Enterprise.

Model year, 2026 bias landed with both price and volume hitting our targets unlocking model year, 2025 sales and activating our short hold strategy.

Well, let's start with the fleet a powerful economic lever.

It's still early but the actions we're taking are already revealing what a bright future for Herz looks like

We've transformed our fleet from a headwind to our competitive advantage by continuing to hone our skills sourcing vehicles optimally deploying them effectively and monetizing them strategically.

Shorter vehicle life cycles sustained favorable fleet economics, and enable additional unit cost efficiencies in our service operations, while also driving stronger residual values in the used car market reinforcing our retail car sales momentum.

Our U S fleet is newer and more aligned to customer preference than it's been in years.

The refresh complete our average fleet age is now under 12 months and we're positioned to sustain our modern fleet aligned with R. D. P U North star metric.

Which brings us to the big story this quarter Hertz car sales.

For 50 years Hertz car sales existed as a valuable but under leveraged business line and doormat brand.

Model year 2026.

<unk> landed with both price and volume hitting our targets unlocking model year, 'twenty 'twenty five sales and activating our short hold strategy.

We've been working to transform it from a simple fleet rotation mechanism into a profit accretive engine.

One that not only strategically monetize our fleet, but expands our relationship with our customers from rental to ownership. We have all the tools traditional dealers have plus significant built in advantages, we own and service hundreds of thousands of cars with a consistent inventory.

Which brings us to the big story this quarter part Hertz car sales for.

<unk> pipeline.

We're essentially a used car factory that rents to millions of loyal customers, who test drive our cars every day those Differentiators guide our strategy.

For 50 years Hertz car sales existed as a valuable but under leveraged business line and dormant brand we've been working to transform it from a simple fleet rotation mechanism into a profit accretive engine.

As such we're meeting customers, where they are and capitalizing on what makes hurts unique a great example is our rent to buy program, which offers a three day test drive before you buy this leverages our competitive advantage to convert renters into buyers and is now available in more.

One that not only strategically monetize as our fleet, but expands our relationship with our customers from a rental to ownership. We have all the tools traditional dealers have plus significant built in advantages, we own and service hundreds of thousands of cars with a consistent inventory.

100 cities.

And as working 70% of our rent to buy customers purchased their vehicle.

Pipeline, where essentially a used car factory that rents to millions of loyal customers to test drive our cars every day those Differentiators guide our strategy.

Our exceeding traditional dealership conversion rates.

With a few notable exceptions car buying remains a largely antiquated and fragmented industry and we are here to compete.

<unk> is simple customers shouldn't have to choose between digital ease and dealer confidence our strategy connects both worlds meeting them. However, they choose to buy with a trusted global brand.

So partnering with Cox automotive, we further advancing our digital retail channels. We now have a full service e-commerce site with financing and delivery.

100 cities.

And as working 70% of our rent to buy customers purchase their vehicle.

Our exceeding traditional dealership conversion rates.

Turning a browsing tool into a transaction engine.

With a few notable exceptions car buying remains a largely antiquated and fragmented industry and we're here to compete.

In August we launched Hertz car sales on Amazon in autos, letting customers browse and purchase our vehicles with one of the world's most trusted retail services.

Harvey you assemble customers shouldn't have to choose between digital ease and dealer confidence our strategy connects both worlds meeting them. However, they choose to buy with a trusted global brand.

These digital innovations create an omnichannel experience that we believe only hurts can offer.

We strengthened our strengthened foundation enables partnerships like Cox, and Amazon, giving us flexibility and speed to move from strategy to execution, It's Earl.

So partnering with Cox automotive, we further advancing our digital retail channels. We now have a full service e-commerce site with financing and delivery turning a browsing tool into a transaction engine.

Early.

But by scaling our direct to consumer and E. Commerce challenge channels, we're positioned to capture $2000 or more incremental margin benefit per vehicle versus wholesale channels.

In August we launched Hertz car sales on Amazon autos, letting customers browse and purchase our vehicles with one of the world's most trusted retail services.

And this is all while maximizing fleet utilization by renting vehicles right up until they are sold reducing holding and selling costs, leveraging real time, AI pricing and capturing back in finance and insurance revenue.

These digital innovations create an omnichannel experience that we believe only hurts can offer.

We strengthen our strengthened foundation enables partnerships like Cox, and Amazon, giving us flexibility and speed to move from strategy to execution, It's Earl.

This is just the start our goal is to scale. These channels. So the vast majority of vehicles sell through e-commerce retail.

Early.

But by scaling our direct to consumer and E. Commerce challenge channels, we're positioned to capture $2000 or more incremental margin benefit per vehicle versus wholesale channels.

We will execute this effectively harnessing our fleet size and broad customer base every hurts renter becomes a potential buyer and vice versa.

Just as hard Hertz car sales will create new value and scale, we see the same opportunity across other areas.

And this is all while maximizing fleet utilization by renting vehicles right up until they are sold reducing holding in selling cost leveraging real time, AI pricing and capturing back in finance and insurance revenue.

This company cannot and will not rest on rent a car alone.

The skills and capabilities, we are building through our transformation are strengthening our operations, while creating the foundation for diversified growth.

This is just the start our goal is to scale. These channels. So the vast majority of vehicles sell through E. Commerce retail we will execute this effectively harnessing our fleet size and broad customer base every hurts renter becomes a potential buyer and vice versa.

It's a platform spanning rent a car fleet service and mobility that can expand into complementary revenue streams.

From servicing customer vehicles, and scaling Hertz car sales to expanding rideshare partnerships and managing Avi fleets.

Uh huh.

Just as hard Hertz car sales will create new value and scale, we see the same opportunity across the other areas.

With each area each area sits at a different maturity stage.

But together they reinforce one vision turn hurts into a value, creating mobility platform that meets customers wherever they are.

This company cannot and will not rest on rent a car alone.

The skills and capabilities, we're building through our transformation are strengthening our operations, while creating the foundation for diversified growth. It's a platform spanning rent a car fleet service and mobility that can expand into complementary revenue streams.

And wherever mobility goes next from today's rental and ownership models to tomorrow's connected and autonomous vehicle ecosystems.

We will share our momentum as these capabilities mature and demonstrate the tangible results behind our strategy.

From servicing customer vehicles, and scaling Hertz car sales to expanding rideshare partnerships and managing Avi fleets.

Near term.

Our focus remains disciplined fleet management revenue optimization, and rigorous cost control and ensuring each area of our business powers. The next and can grow we're proud of this transformation progress, but we are most excited about what is to come what excites us most.

With each area each area sits at a different maturity stage.

But together they reinforce one vision turn hurts into a value, creating mobility platform that meets customers wherever they are.

And wherever mobility goes next from today's rental and ownership models to tomorrow's connected and autonomous vehicle ecosystems.

This how much more the hertz platform kimba com with that I'll turn it over to Sandeep to walk through the strategic actions, we're taking and the progress we're making on our rental business. Thanks.

Sure our momentum as these capabilities mature and demonstrate the tangible results behind our strategy.

Thanks, Gail and good morning, everyone.

We continue to improve fleet economics and agility.

In your term.

We're leveraging that momentum to action our commercial strategy.

By maximizing asset productivity and strengthening pricing to discuss my experience diversified durable demand and advanced revenue management actions, we have positioned ourselves to deliver both near term game teams.

<unk> is how much more the hertz platform kimba com with that I'll turn it over to Sandeep to walk through the strategic actions, we're taking and the progress we're making on our rental business. Thanks, Gail and good morning, everyone.

And long term value.

This quarter, we delivered sequential and year over year improvement.

Improvement in revenue <unk>, and IPD, while achieving record utilization.

While we actively manage our PD, we prioritized our bu because it captures both rate and utilization.

As we continue to improve fleet economics, and agility, we're leveraging that momentum to action our commercial strategy by.

This helps our team balanced rate and days.

Giving us a true measure of the revenue generated by each Waco, and I gave it a month.

This is especially relevant for lower rate longer keep rentals like those in our ride share and off airport segments, where costs are lower and rentals are longer.

Gains and long term value.

This quarter, we delivered sequential year over year improvement in revenue RP U and our P D while achieving record utilization.

<unk> came in at $1530 nearly flat year over year and sequentially improved through the quarter on a year over year basis.

Why do we actively manage our PD, we prioritized our bu because it captures both rate and utilization.

Internally, we also track our view across our total fleet, which includes all the way. He goes interest irrespective of operating status whether in service out of service or in a car sales inventory.

This helps our team balanced rate and days.

Giving us a true measure of the revenue generated by each way equal in a given month.

This is especially relevant for Noah rate longer keep rentals like those in a rideshare and off airport segments, where costs are lower and rentals are longer.

Our appeal on total fleet better measures on economic progress and that metric improved 2% year over year.

Breaking our view into its components.

<unk> came in at $1530 nearly flat year over year and sequentially improved through the quarter on a year over year basis.

Ive into utilization first.

As Gill mentioned, we delivered a record utilization since 2018 of 84 plus in this quarter.

<unk> nearly flat thanks to our strategic ability to offset the impact of recalls.

Internally, we also track our view across our total fleet, which includes all the way. He goes interest irrespective of operating status whether in service out of service or in a car sales inventory.

Despite our decision to operate a 7% smaller fleet overall.

Utilization rate, which excludes vehicles being held for sale improved by 260 basis points year over year.

Our view on total fleet better measure is on economic progress and that metric improved 2% year over year.

Utilization across our total fleet.

Tom, which I just defined a moment ago showed the most substantial improvement of 460 basis points.

Breaking our bill into its components, let's dive into utilization first.

As Gill mentioned, we delivered a record utilization since 2018 of 84% this quarter.

This improvement was driven by better process management of our car sales inventory.

This is utilization performance didn't happen by chance.

Days were nearly flat thanks to our strategic ability to offset the impact of recalls despite our decision to operate a seven person smaller fleet overall.

Is the product of shopper coordination between fleet planning technical operations and revenue management aligned.

Aligning capacity to demand in real time, reducing out of service units and accelerating vehicle redeployment.

This utilization rate, which excludes waco's being held for sale improved by 200 660 basis points year over year.

Turning to pricing, which as we all as we discussed last quarter.

Utilization across our total fleet.

<unk>, our largest unlocked to fuel <unk> growth.

Mitch I just defined a moment ago showed the most substantial improvement of 460 basis points.

Our sights are set on delivering a positive IPD for a comparable asset class.

This improvement was driven by better process management of our car sales inventory.

Global RPT was down approximately 4% year over year.

RPT was negatively impacted 2% year over year by changes to the fleet mix.

This is utilization fulfillment didn't happen by chance.

Is the product of shopper coordination between fleet planning technical operations and revenue management aligning.

Within the quarter July our PD was down over 3% for a comparable fleet mix and.

Aligning capacity to demand in real time, reducing out of service units and accelerating vehicle redeployment.

And improve by September to down 2%.

Encouragingly October our BD performed even better.

Turning to pricing, which as we all as we discussed last quarter.

The results in late Q3 in October incorporates some of the short term wins that have come from a critical review of our commercial strategies and tactics.

Means our largest unlocked to feel ARPA growth.

Our sights are set on delivering a positive IPD for a comparable asset class.

Many of these haven't been innovated for years and.

Global RPT was down approximately 4% year over ear RPT was negatively impacted 2% year over year by changes to the fleet mix.

And we have been acting upon them with urgency including.

Driving a better customer experience, which leads to better pricing power.

Within the quarter July our PD was down over 3% for a compatible fleet mix.

Generating greater durable demand from higher margin channels and segments, including continued diversification beyond airport.

And improve by September two down 2% and.

Improving our pricing tactics and strategies.

Encouragingly October our BD performed even better.

We maintain our revenue management tools and processes.

The results in late Q3 in October incorporates some of the short term wins that have come from a critical review of our commercial strategies and tactics.

Monetizing our higher RPM assets more effectively and.

Integrating world class commercial talent into our team.

The improvement in Q3 was powered by an updated booking curve strategy.

Many of these haven't been innovated for years.

And we have been acting upon them with urgency including.

Hence revenue management tools stronger value added service monetization and local level fleet mix optimization.

Driving a better customer experience, which leads to better pricing power.

Generating greater durable demand from higher margin channels and segments, including continued diversification beyond airport in <unk>.

As I mentioned earlier October RPT performed better than September.

Looking ahead at the rest of the fourth quarter.

There's some soft softness in the remaining months driven by seasonal leisure troughs combined with the impact of the government shutdown.

Proving our pricing tactics and strategies.

If anything our revenue management tools and processes.

Monetizing our higher RPM assets more effectively and in.

Over the next few quarters, we expect our efforts to gain further traction field.

Integrating world class commercial talent into our team.

Fueling our ultimate objective of achieving absolute price increases across comparable asset classes.

The improvement in Q3 was powered by an updated booking curve strategy enhanced revenue management tools stronger value added service monetization and local level fleet mix optimization.

Thought and insight into what's to come let's detailed initiatives a bit starting with delivering better customer experience.

Partway into greater repeat business and Radnet advocacy.

As I mentioned earlier October RPT performed better than September.

Our focus is on delivering greater consistency.

Looking ahead at the rest of the fourth quarter. There is some softness in the remaining months driven by seasonal leisure troughs combined with the impact of the government shutdown.

Convenience and care across our customers' rental journey knowing.

That when we invest in our customers.

Invest in us.

Great customer experiences stopped with great employee experiences this quarter, though we focused on reconnecting our employees around the world.

Over the next few quarters, we expect our efforts to gain further traction.

Fueling our ultimate objective of achieving absolute price increases across comparable asset classes.

Through new communication channels, and giving them the right tools to succeed.

We rolled out a new customer experience training empowering our customer facing teams with new approaches to get it right and make it right each time.

For an insight into what's to come let's detailed initiatives a bit starting with delivering better customer experience are partway into greater repeat business and brand advocacy.

We also leveraged technology to deliver a smooth customer experience, including.

Our focus is on delivering greater consistency.

Convenience and care across our customers' rental journey, knowing that when we invested in our customers they invest in us.

Making it easier to modify reservations and purchase upgrades digitally.

Enabling self service rental extensions and building on customer trust through improved post rental communications.

Great customer experiences stopped with great employee experiences this quarter, though we focused on reconnecting our employees.

The AI powered chat and call support launched earlier this year now services, 72% of U S inbound chat delivering faster and resolutions and improve satisfaction, while also delivering cost efficiency.

The world through new communication channels, and giving them the right tools to succeed.

We rolled out a new customer experience training empowering our customer facing teams with new approaches to get it right and make it right each time.

As Gil said these improvements translated into a nearly 50% increase in our North American net promoter score versus last year, a clear signal that customers are noticing the difference.

We also leverage technology to deliver a smooth customer experience, including making it easier to modify reservations and purchase upgrades digitally.

To help build further momentum we welcomed a seasoned leader yesterday as our new chief customer experience officer.

Enabling self service rental extensions and building on customer trust through improved both rental communications.

This last quarter, we made progress on growing and diversifying durable demand our strategy important and growing RPE as it enables us to curate our portfolio by weaning off lower yielding demand.

<unk> AI powered chat and called support launched earlier this year now services, 72% of U S inbound chats, delivering faster resolutions and improve satisfaction, while also delivering cost efficiency.

In the U S. App bookings increased by 800 basis points year over year, making the app, our fastest growing channel with <unk>.

As Gil said these improvements translated into a nearly 50% increase in our north American net promoter score versus last year.

Simplified membership sign up and added exclusive benefits driving U S. HUD slightly member enrollments up over 90% year over year.

Clear signal that customers are noticing the difference.

To help build further momentum we welcomed a seasoned leader yesterday as our new chief customer experience officer.

Previously, we said we would further diversify revenue streams throughout off airport and rideshare business lines.

This last quarter, we made progress on growing and diversifying durable demand.

These combined business lines showed year over year sequential revenue improvement, a dynamic which is RPT dilutive, yet <unk> and EBITDA accretive.

<unk> important and growing our P D. As it enables us to curate our portfolio by weaning off lower yielding demand.

This diversity diversification approach expand scale.

In the U S. App bookings increased by 800 basis points year over year, making the app our fastest growing channel.

Drives the utilization, especially during trough and shoulder season and feeds the flywheel across all four of our verticals.

Simplified membership sign up and added exclusive benefits driving U S. HUD slightly member enrollments up over 90% year over year.

We are also reexamining every aspect of revenue management.

<unk>, we are making go well beyond the multiyear transformation of our pricing systems and present a significant opportunity.

Previously we said we would further diversify our revenue streams through our off airport and rideshare business lines.

We are improving the demand funnel with a goal of delivering a healthier upward sloping pricing curve for our various segments.

These combined business line showed year over year sequential revenue improvement, a dynamic which is RPT dilutive, yet <unk> and EBITDA accretive.

Out of Octobers pricing improvement can be attributed to this work and we believe will unlock greater value as we progress.

This diversity diversification approach expand scale.

Drives utilization, especially during trough and shoulder seasons and feeds the flywheel across all four of our verticals.

We also strengthened our revenue management leadership team with a world class pricing and revenue management systems leader his experience will help us deliver smarter pricing strategies that maximize value for both our customers and our business.

We are also reexamining every aspect of revenue management. The advancements we are making go well beyond the multiyear transformation of our pricing systems and present a significant opportunity.

Alongside these commercial upgrades, we are transforming how local teams operate ensuring we are adapting our strategy to each market's unique demand and opportunity.

We are improving the demand funnel with a goal of delivering delivering a healthier upward sloping pricing curve for our various segments.

Dashboards and analytical tools now good field leaders visibility into pricing utilization and customer satisfaction drivers in real time.

Part of Octobers pricing improvement can be attributed to this work and we believe will unlock greater value as we progress.

Equipment equipment equipping them to identify opportunities and act faster.

We also strengthened our revenue management leadership team with a world class pricing and revenue management systems leader.

This shift represents more than a process change it's the cultural alignment we are empowering our teams to think like owners and build lasting trust with every customer so stepping back the playbook is working and the results prove it better customer experience is increasing loyalty driving more durable demand.

His experience will help us deliver smarter pricing strategies that maximize value for both our customers and our business.

Alongside these commercial upgrades, we are transforming how local teams operate ensuring we are adapting our strategy to each market's unique demand and opportunity.

Our revenue management transformation is off the starting blocks led by World class talent.

New dashboards and analytical tools now give field leaders visibility into pricing utilization and customer satisfaction drivers in real time.

Revenue metrics improved through the quarter, including a pathway to better our BD with that.

I'll hand, it over to Scott to walk through our financial performance and liquidity.

Equipment equipment equipping them to identify opportunities and act faster.

Thanks Sandeep.

Everyone and thank you for joining us I want to congratulate the team on a great quarter, we achieved our first positive EPS and over two years improved our PD and <unk>.

This shift represents more than a process change it's a cultural one we're empowering our teams to think like owners and build lasting trust with every customer so stepping back the playbook is working and the results prove it better customer experience is increasing loyalty driving more durable demand.

Record utilization and a major leap in NPS scores.

That's great great stuff and we're all proud of the progress, but we're only getting started heck, we've barely begun our focus doesn't stop with being just the best rental car company, our envision expands beyond that.

Revenue management transformation is off the starting blocks led by World class talent.

The revenue metrics improved through the quarter, including a pathway to better our PD with that.

If our goal was to just be the same old rental car company in the same old industry that has largely been the same for a couple of generations the value of our business would be limited.

I'll hand, it over to Scott to walk through our financial performance and liquidity.

Thanks, Sandeep and good morning, everyone and thank you for joining us I want to congratulate the team on a great quarter, we achieved our first positive EPS in over two years.

Now that is not to say that the rental car business is an important it.

It is very important critical.

Critical in fact and will strive to be the best in the world, but we view it as a stepping stone to bigger ideas.

<unk> are a P D and R. P. You.

Record utilization and a major leap in NPS scores that.

We're building a diverse platform of value enhancing capabilities that can make hurts considerably more valuable than today.

That's great great stuff and we're all proud of the progress.

We're only getting started tech we've barely begun our focus doesn't stop with being just the best rental car company, our envision expands beyond that.

Hard to look past, the near term quarter to quarter year over year metrics. The industry. Typically focuses on we just don't view them as the ultimate predictors of real long term value creation.

If our goal was to just be the same old rental car company in the same old industry that has largely been the same for a couple of generations the value of our business would be limited.

It will be our job to figure out how to eventually tell the story in a way that highlights that value.

Overtime, we will public publicly released the components of our platform as they become ready like we have with our digital car sales platform.

Now that is not to say that the rental car business is an important it is very important critical in fact and will strive to be the best in the world, but we view it as a stepping stone to bigger ideas. We're.

We had to start with our rental car fleet in order to turn the retro car business up right there.

We're building a diverse platform of value enhancing capabilities that could make her considerably more valuable than today.

Was no avenue to pursue the extended vision until that was progressing well.

We've been refining our vision over the last year or so and they are still doing that today. We have said all along this wasn't a quick fix and we couldnt yet articulate our expanded vision.

It's hard to look past, the near term quarter to quarter year over year metrics. The industry. Typically focuses on we just don't view them as the ultimate predictors of real long term value creation.

So we are starting to now.

It will be our job to figure out how to eventually tell the story in a way that highlights that value.

Now changing course, let me give you some details on the numbers for the quarter, our view on Q4 and a framework for 2026.

Overtime, what public publicly released the components of our platform as they become ready like we have with our digital car sales platform.

Revenue was $2 5 billion and adjusted corporate EBITDA was $190 million, an 8% margin within guidance and up roughly $350 million year over year.

We had to start with our rental car fleet in order to turn the retro car business up right. There was no avenue to pursue the extended vision until that was progressing well.

We also posted net income of $184 million and positive EPS for the first time in two years.

We've been refining our vision over the last year or so and are still doing that today. We have said all along this wasn't a quick fix and we couldn't yet articulate our expanded vision.

Our international segment saw increasingly strong margins with larger or PD <unk> gains as the international market is seeing a strong pricing environment.

So we are starting to now.

Now changing course, let me give you some details on the numbers for the quarter, our view on Q4 and a framework for 2026.

Globally, RPE was $1530 nearly flat year over year, but improving sequentially through the quarter.

Revenue was $2.5 billion in adjusted corporate EBITDA was $190 million, an 8% margin within guidance and up roughly $350 million year over year.

Transaction days were almost flat versus Q3 of 2024, despite a 7% smaller fleet with utilization, reaching the highest number in more than five years at above 84%, even with more than 2% of the U S fleet impacted by OEM recalls.

We also posted net income of $184 million and positive EPS for the first time in two years.

That's the operating model working tighter fleet sharper deployment better productivity.

Our international segment saw increasingly strong margins with larger our PD in RP you gains as the international market is seeing a strong pricing environment.

Our buy right hold right sell right strategy continues to anchor fleet unit economics.

<unk> was $273 per month in line with expectations supported by healthy residuals and disciplined channel management.

Globally, RPE was $1530 Lynn nearly flat year over year, but improving sequentially through the quarter.

Transaction days were almost flat versus Q3 of 2024, despite a 7% smaller fleet with the utilization, reaching the highest number in more than five years at above 84%, even with more than 2% of the U S fleet impacted by OEM recalls.

As planned gains on sale moderated with lower volumes with overall fleet returns remaining balance.

On cost discipline is sticking.

<unk> operating expenses declined 1% year over year, and BOE per day improved both sequentially and annually.

That's the operating model working tighter fleet sharper deployment better productivity.

Despite inflation and smaller scale.

SG&A remained tightly managed as technology and process leverage flow through this.

Our buy right hold right sell right strategy continues to anchor fleet unit economics.

This is the kind of durable cost posture, we set out to build.

<unk> was $273 per month in line with expectations supported by healthy residuals and disciplined channel management.

We ended the quarter with $2 $2 billion of total liquidity, including about $1 1 billion of unrestricted cash in the balance and revolver capacity and.

As planned gains on sale moderated with lower volumes with overall fleet returns remaining balance.

And generated approximately $250 million in positive adjusted free cash flow.

On cost discipline is sticking direct operating expenses declined 1% year over year and D O per day improved both sequentially and annually.

We had a $154 million benefit in the quarter from cash received from the previously disclosed litigation settlement distribution.

Our ABS programs remain healthy with ABS vehicle fair values comfortably above net book values and market access is solid.

Despite inflation and smaller scale.

SG&A remain tightly managed as technology and process leverage flow through this.

This is the kind of a durable cost posture, we set out to build.

In September we completed a $425 million senior unsecured exchangeable notes issuance.

We ended the quarter with $2 $2 billion of total liquidity, including about 1.1 billion of unrestricted cash in the balance and revolver capacity and.

We used the cap calls to increase the effective strike price of the notes to $13 94.

At least $300 million of that will be used to partially redeem our $500 million bond obligation that matures in December of 2026.

And generated approximately $250 million in positive adjusted free cash flow.

We had a $154 million benefit in the quarter from cash received from the previously disclosed litigation settlement distribution.

The remaining balance is our only corporate maturity in 2026.

Looking to Q4, we expect transaction days to be close to flat year over year, even with our expected fleet to be down just under 5%.

Our ABS programs remain healthy with a b S vehicle fair values comfortably above net book values and market access is solid.

Total fleet utilization will face an elevated number of fleet recalls but should remain solid.

In September we completed a $425 million senior unsecured exchangeable notes issuance.

We also expect lower Boe per day by roughly 5%.

We used the cap calls to increase the effective strike price of the notes to $13 94.

This outsized number is primarily due to a large true up expense. We took in 'twenty 2024 related to our insurance claims reserve that shouldn't reoccur this quarter.

At least $300 million of that will be used to partially redeem our $500 million bond obligation that matures in December of 2026.

Excluding that Bo per day would still be down about 1% to 2%.

The remaining balance is our only corporate maturity in 2026.

We are however, seeing a large number of vehicles being sold at auctions in the quarter, which is having an effect on residuals in the period. We believe this to be isolated to the quarter, but it will likely have an effect on used car pricing for Q4, given that we expect net <unk> to rise slightly quarter over quarter to 200.

Looking to Q4, we expect transaction days to be close to flat year over year, even with our expected fleet to be down just under 5% total.

Total fleet utilization will face an elevated number of fleet recalls but should remain solid.

We also expect lower D O per day by roughly 5%.

Third $80 to $285 per month.

This outsized number is primarily due to a large true up expense. We took in 'twenty 2024 related to our insurance claims reserve that shouldn't reoccur this quarter.

For revenue, while you heard from Sandeep around the positive pricing trends in October the softness in the remaining months of the quarter seem to potentially be government shutdown related and are likely transitory.

Excluding that D O M per day would still be down about 1% to 2%.

We do expect the peaks of the quarter to perform well the softness will likely sit in the trough, which Q4 has a law of large trough to peak spread given Thanksgiving Christmas and some new year's impact.

Also in October we experienced three different external system outages at three of our larger infrastructure vendors.

Two of the events were isolated to us, but the other one affected multiple companies.

Third 80 to $285 per month.

We are certainly not happy about the ineffectiveness of the redundancies that are vendors. These outages will likely cost us about 10% to $20 million of revenue in the fourth quarter.

While isolated to this quarter, we're taking further steps to reduce the likelihood of these types of events in the future.

We do expect the peaks of the quarter to perform well the softness will likely sit in the troughs, which Q4 has a law of large trough to peak spread given Thanksgiving Christmas and some new year's impact.

As a result of all the Q4 moving pieces, we have updated our Q4 guidance to a slightly negative margin range of negative low to mid single digits EBITDA margin.

Also in October we experienced three different external system outages at three of our larger infrastructure vendors.

So let's talk 2026.

While there has been some recent dust in the year for Q4, we are cautiously optimistic for a stable setup for next year.

Two of the events were isolated to us, but the other one affected multiple companies.

Our fleet is in a good position for continued rotation and growth of Hertz car sales was model year 2026 vehicle purchases progressing nicely as we now have more than 80% of purchase volume already procured with line of sight to a good bit more.

We're certainly not happy about the ineffectiveness of the redundancies that are vendors. These outages will likely cost us about $10 million to $20 million of revenue in the fourth quarter.

While isolated to this quarter, we are taking further steps to reduce the likelihood of these types of events in the future.

We still expect our run rate net <unk> well below $300 per month.

As a result of all the Q4 moving pieces, we have updated our Q4 guidance to a slightly negative margin range of negative low to mid single digits EBITDA margin.

For capacity, we are looking to start growing the fleet again in 2026, but doing it the right way with.

So let's talk 2026.

With the three usages for vehicles being one our on airport rental business to our <unk>, our off airport locations and three our rental car adjacent mobility business.

While there has been some recent dust in the year for Q4, we are cautiously optimistic for a stable set up for next year.

Each has different levels of maturity and different growth opportunities for 2026, we expect to grow the mature airport business at GDP like levels in the low single digit range.

Our HLA our off airport business is less developed and has more white space for us to grow so that business will likely grow in the mid to high single digit range.

We still expect our run rate net DP, you well below $300 per month.

For capacity, we are looking to start growing the fleet again in 2026, but doing it the right way.

And lastly, our emerging mobility business has a large amount of runway and will likely grow in the 10% to 20% range next year. All of this together should put us in the mid single digit growth range in transaction days and a somewhat smaller number and growth of the fleet with the ability to increase or decrease with minimal lead time based on market dynamics.

With the three usages for vehicles being one our on airport rental business to our H L. Lee our off airport locations and three our rental car adjacent mobility business.

Each has different levels of maturity and different growth opportunities for 2026, we expect to grow the mature airport business at GDP like levels in the low single digit range.

<unk>, given our fleet flexibility.

This is likely the same framework, we would see again in 2027 as well.

We expect that our continued revenue management initiatives as well as continued cost performance along with GPU and capacity assumptions in 2026 will drive a significant margin improvement year over year.

Our HLA our off airport business is less developed and has more white space for us to grow so that business will likely grow in the mid to high single digit range.

We are targeting a 3% to 6% EBITDA margin for next year.

And putting us on our way to our target of $1 billion of EBITDA production in 2027.

In closing I am encouraged by the progress we've made in strengthening our rental car business. However, my true optimism lies on the possibilities unlocked by the diverse platform of building.

That mix given our fleet flexibility.

This is likely the same framework, we would see again in 2027 as well.

Our rental is an important piece of our business what the horizon expand is expanding well beyond it. It is exciting to think about what hurts could look like in the years ahead.

With that I'll turn it back to Gil for closing remarks. Thank you. Scott. This is another quarter, where we delivered on our commitments.

We are targeting a 3% to 6% EBITDA margin for next year.

Proof that our strategy is working that said we know there's more work to do we're holding ourselves accountable for the improvements we need to make by driving rigor across each of our north star metrics and other key financials every day every month every quarter.

And putting us on our way to our target of $1 billion of EBITDA production in 2027.

In closing I am encouraged by the progress we've made in strengthening our rental car business. However, my true optimism lies in the possibilities unlocked by the diverse platform of building <unk>.

We will always strive to be the best rental car company, we can be for our customers, but as you've heard this work is more than that.

Our rental is an important piece of our business, but the horizon expand is expanding well beyond it. It is exciting to think about what hurts could look like in the years ahead.

It's about building on our foundation to create a truly diversified value, creating platform that gives our customers more and positions hertz to thrive across the full spectrum of mobility.

With that I'll turn it back to Gil for closing remarks. Thank you. Scott. This is another quarter, where we delivered on our commitments.

Understanding our customers and evolving to meet their needs is in our DNA, it's driven our success for the past 100 years and it is how hertz will become more than a rental car company for the next hundred our philosophy is simple the best way for Hertz to be part of the future is to be.

We will always strive to be the best rental car company, we can be for our customers, but as you heard this work is more than that.

And the service of at the <unk>.

Work, we're doing to transform this company is deepening our skills and capabilities across all aspects of our business and giving US The foundation few others have so while the future of mobility continues to evolve.

It's about building on our foundation to create a truly diversified value, creating platform that gives our customers more and positions hertz to thrive across the full spectrum of mobility.

Aren't yet ready for mass deployment.

Understanding our customers and evolving to meet their needs is in our DNA, it's driven our success for the past 100 years and its how hertz will become more than a rental car company for the next hundred our philosophy is simple the best way for Hertz to be part of the future is to be.

Building the infrastructure and talent today for when they are.

Whether it's how are people buy a ride in cars or how the cars themselves change will play a key role with that let's open it up for questions back to you operator.

And the service of at the work we're doing to transform this company is deepening our skills and capabilities across all aspects of our business and giving US. The foundation few others have so while the future of mobility continues to evolve and avs aren't yet ready for mass.

We will now open the line for questions. Please limit your questions to one question per speaker and one follow up if needed to ask a question. Please dial star one on your phone.

You wish to cancel your question Dial Star one again, our first question today comes from the line of Chris <unk> from Deutsche Bank. Your line is open.

<unk>, we are building the infrastructure and talent today for when they are.

Hey, good morning, guys. Thanks for all the details so far and taking the questions.

Whether it's how are people buy a ride in cars or how the cars themselves change will play a key role with that let's open it up for questions back to you operator.

Joe you've talked to this is back in the prepared comments.

What about kind of becoming this.

You said value, creating mobility platform could you, maybe unpack a little bit for us what that what that kind of user practice.

We will now open the line for questions. Please limit your questions to one question for Speaker and one follow up if needed to ask a question. Please dial star one on your phone if you wish to cancel your question Dial Star One again, our first question today comes from the line of Chris <unk> from Deutsche Bank. Your line is open.

With the platform includes and maybe halfway I guess in your mind creates value beyond the traditional core rental business.

Yes, sure Chris Yes. Thanks, Thanks for the question.

I guess I would start just by saying historically, we have subordinated everything to our rental car business and we see additional growth and value creation well beyond that so as I may.

Hey, good morning, guys. Thanks for all the detail so far taking the questions.

Joe you've talked and this is back in the prepared comments you talked about kind of becoming this.

Maybe I unpack some of that I'll start with a rental car piece first and just reemphasize like this our core business.

That value, creating mobility platform can you, maybe unpack a little bit for us what that what that means in practice and what what the.

Is job one for us to rebuild core rental car business, we're making progress I hope youre seeing that in the numbers, but we got a lot of work to do so we're not going to be distracted from that is the key message and we're going to we're going to remain focused but we're far more than a rental car company. So the other pieces.

With the platform includes and maybe halfway.

So in your mind creates value beyond the traditional core rental business.

Yeah sure sure Chris Yes. Thanks, Thanks for the question.

You know I guess I would start just by saying historically, we subordinated everything to our rental car business and we see additional growth and value creation well beyond that so as I.

That I touched on there the car sales service and mobility.

Maybe just pulling that back a little bit of car sales first of all the strategy. We deployed the end to end.

Maybe I unpack some of that I'll start with a rental car piece first and just reemphasize like this our core business.

Bye bye right hold right. So right strategy that really sets us up well for this especially with the fleet rotation kind of being in the rearview mirror.

Is job one for us to rebuild at core rental car business, you know, we're making progress I hope you're seeing that in the numbers, but we got a lot of work to do so we're not going to be distracted from that is the key message and we're going to we're going to remain focused but we're far more than a rental car company. So the other pieces.

And of course, we got an iconic trusted brand. So the way we look at it is we're trading large volume of cars annual.

Especially as we shorten the whole periods up volume.

Even further so we've got we've also got a pipeline of discounted supply of vehicles.

That I touched on there the car sales service and mobility, maybe just pulling that back a little bit of car sales first of all the strategy. We deployed the end to end.

So as I said it earlier, we're kind of used car factories, the way I visualize it so.

We're producing well maintain low mileage and I'd just add one owner cars.

Bye bye right all right. So right strategy that really sets us up well for this especially with the fleet rotation kind of being in the rearview mirror.

The natural footprint that puts us in the top five used car dealerships in the country. So we have scale and we got ongoing supply.

And of course, we got an iconic trusted brand. So the way we look at it is we're trading large volume of cars annual.

We also take trades on vehicles, we can buy used cars in the market and have in the past. So just like other dealers, which which generally is their only source of supply.

Especially as we shorten our whole periods that volume will increase even further so we've got we've also got a pipeline of discounted supply of vehicles. So as I said it earlier, we're kind of used car factories, the way I visualize it so.

So we got people as we talked about test driving our cars daily and a very large installed customer base. So we in short have real strategic advantages to other large dealers in the market that we just hadn't been exploiting so.

We're producing well maintain low mileage and I'd just add one owner of cars.

With the natural footprint that puts us in the top five used car dealerships in the country. So we have scale and we got ongoing supply. We also take trades on vehicles, we can buy used cars in the market and have in the past. So just like other dealers, which which generally is they're always sources.

Unlocking the e-commerce side of this gives us.

Capacity, along with our existing physical footprint and infrastructure to create a scale retail sales model.

So that's how we see the car sales side.

Service.

Apply.

It's more early innings in service candidly, but we've got a deep and I'd just say much improved core operating.

Competency and infrastructure to service vehicles, and as you know we've been cleaning.

Fueling and maintaining corners, where over 100 years. So we got the opportunity to monetize this core competency beyond <unk>.

This gives us a capacity along with our existing physical footprint and infrastructure to create a scale retail sales model.

The servicing our own vehicles and go direct to really a b to b and B to C customers and we're starting to action now.

No.

So that's how we see the car sales side. Our service you know it doesn't it's more early innings in service candidly, but we've got a deep and I'd just say much improved core operating.

Again, the way we look at it we got a global footprint of <unk>.

Car wash car washes gas stations EV charging stations and repair all changed shop. So.

Competency and infrastructure to service vehicles, and as you know, we've been cleaning and fueling and maintaining cars were over 100 years. So we got the opportunity to monetize this core competency beyond this servicing our own vehicles and go direct to a really a b to be an a b to C.

A lot of potential with that footprint and then finally last but not least the mobility part of our business.

What part of the future of mobility, we got great partnerships and rideshare now we've been piloting some very innovative new models with Uber.

We're beginning to start to scale as we go into 2006 and of course I think we're a natural player in the space as it continues to evolve.

Customers and we're starting to action now.

Again, the way we look at it we got a global footprint of Carwash car washes gas stations EV charging stations and repair all changed shop. So you know a lot of potential with that footprint and then finally last but not least the mobility part of our business.

You heard that I think on our last earnings call the rationale behind that and we've got just an incredible team.

Mobility business, so I'm really bullish on mobility as well, but look every everything comes down to execution and we're staying focused and we're pushing hard to execute.

You know we're a we're part of the future of mobility, we got great partnerships and rideshare now we've been piloting some very innovative new models with Uber that we're beginning to start to scale as we go into 'twenty six and of course I think we're a natural player in the space as it can.

Okay I appreciate all the details there go very very helpful.

Yes, I think we understand the gist.

Strategy now well underway.

Right sized fleet newer cars very high utilization I think one of things that maybe caused that slightly smaller.

Continuous to evolve you hurt you heard that I think on our last earnings call. The rationale behind that and we've got just an incredible team are in the mobility business. So I'm really bullish on the mobility as well, but look every everything comes down to execution, and we're staying focused and where we're pushing hard to execute.

Vehicle size smaller purchase price, maybe less maintenance et cetera.

Is are the economics on that on those on the call it smaller vehicle footprint or the economics, so much better because what appear to be giving up a little bit of RPT of pricing on an absolute basis I'm curious as to whether that's just the customer mix or the utilization, maybe a rideshare or.

Okay I appreciate all the details there Gil very very helpful. As a follow up.

New accounts, whether it's corporate or leisure, maybe you could just kind of.

I think we understand the gist.

Give us a little tour of like.

Our strategy is now well underway.

How customer mix and things like that.

Right sized fleet newer cars very high utilization I think one of the things that maybe caused that slightly smaller.

Maintenance and operating expenses are I guess accretive for smaller vehicles.

Yes.

The whole size smaller purchase price, maybe less maintenance et cetera, but the question is are the economics on that on those I'm going to call. It smaller vehicle footprint or the economics, so much better because it would appear to be giving up a little bit of RPT of pricing on an absolute basis I'm curious as to whether that's just the customer mix.

Well said I think.

A couple of things first of all I would say on the mix side.

I mean, there are some <unk> headwinds as you noted, but the way we look at mix for us.

Is it it's dynamic so ultimately we're trying to optimize and align our car class mix around customer demand what are the customers booking their willingness to pay and.

Utilization, maybe it's rideshare or.

New accounts, whether it's corporate or leisure, maybe you can just give us a little tour of like.

For that class and then the car class unit economics, and doing that at a market level really so when.

How customer mix and things like that.

Maintenance and operating expenses are I guess accretive for smaller vehicles.

When we think about our model year 'twenty six buys in particular I'll back up our model year 'twenty five buys does.

Yeah, I know that it's well said I think a couple.

Couple of things you know first of all I would say on the mix side.

Some degree what was available in the market coupled with our strategy to rotate and refresh the fleet right. All that led to two of fleet mix that was certainly a big tailwind for us on the macroeconomics of fleet, which is the biggest economic lever we have.

Yes, I mean, there are some more P. D headwinds as you noted, but the way we look at mix is.

Is it it's dynamic so ultimately we're trying to optimize and align our car class mix around customer demand what are the customers booking their willingness to pay and for that class and then car class a unit economics and doing that at a market level.

But as we think about model year, 'twenty sixes and the availability that we are seeing that gives us the ability to further.

Improve in this area and get it more dialed in at a market level.

Really so well.

When we think about our model year 'twenty six buys in particular I'll I'll back up our model year 'twenty five buys you know to some degree what was available in the market coupled with our strategy to rotate and refresh the fleet right all that led to a to a fleet mix. It was certainly.

So and then I think just to touch on model year, 2000, six's, while I'm talking about it.

The buys as I mentioned, it really come in at the price and volume targets, we were seeking which keeps our <unk> below the north star target we have.

Been managing to but it also unlocks our ability to sell off our model year 'twenty five fleet and as I mentioned roll into our shorter hold strategy and that helps us for their unit economics, you mentioned, Chris whether it's maintenance expenses or even our ability to sell easier into the retail.

Big tailwind for us on the macroeconomics of fleet, which is the biggest economic lever we have but as we think about model year 'twenty sixes and the availability that we're seeing you know that gives us the ability to further.

Improve in this area and get it more dialed in at a market level.

<unk> side, but the reality is we're really working hard to change our paradigm.

So and then I think just to touch all model year, 'twenty sixes, while I'm talking about it you know the buys as I mentioned it really come in at the price and volume targets, we were seeking which keeps our D. P. You well below the north star target.

And those since the beginning with the end in mind, so we're more buying cars.

Selling them, we're really selling them in.

In mind, so we've got the selling side and mine and trying to develop real car dealership mindset.

We've been managing to but it also unlocks our ability to sell off our model year 'twenty five fleet and as I mentioned in roll into our shorter hold strategy.

Okay Super helpful. Thanks for all the details Gil thank.

Thank you.

And that helps us for their unit economics, you mentioned, Chris whether it's maintenance expenses or even our ability to sell easier into the retail side, but the reality is we're really working hard to change our paradigm.

Our next question comes from the line of Chris <unk> from Susquehanna International Group. Your line is open.

Hey, good morning, everyone.

On the outlook.

Who are the sub 300 GPU for next year.

You know in the sense of beginning with the end in mind, so one more buying cars, we're selling them.

To understand the moving pieces here so.

It sounds like.

This vehicle recall is perhaps going to spill into <unk>.

We're really selling them and are in a in mind. So we've got the selling side and mine and trying to develop a real car dealership mindset.

Early part of next year.

The 26 vehicle purchases seem to be largely in place and so what other work needs to be done I guess with respect to mix and mileage to constantly secure that.

Okay.

Super helpful. Thanks for all the details Gil.

Thank you.

Our next question comes from the line of Chris Stressful uplift from Susquehanna International Group. Your line is open.

That 300 number.

Yeah, I mean, I'll start and Scott feel free to jump in but no I think the broader strategy that we've talked about the end to end fleet strategy by right hold right. So right that works in any environment for US right. I mean, you think about where we were.

Hey, good morning, everyone.

On the outlook.

For the sub 300 GPU for next year.

To understand the moving pieces here so.

Year and a half two years ago is we really we.

It sounds like.

This vehicle recall is perhaps going to spill into <unk>.

We had fierce headwinds on the fleet itself.

Early part of next year.

On the 26th vehicle purchases seem to be largely in place and so what other work needs to be done I guess with respect to mix and mileage to constantly secure that that that that 300 number.

Through our fleet rotation, we've turned those around into <unk> now with the model year 2000, six's and the buys again, the price and volume that we've seen that that helps us continue that model in fact, it gets us to the short hold now with the volumes that really perpetuate our ability to hit our <unk>.

Yeah, I mean, I'll start and Scott feel free to jump in but no I think the broader strategy that we've talked about the Indian fleet strategy by right hold right. So right that works in any environment for US right. I mean, you think about where we were you know year and a half two years ago. As we were really I mean, our we had.

Northstar Btu.

Targets.

Yes.

Gil I think hey, good morning to Chris can see it.

Yes, I think look we what we're looking at today is a very similar platform in 2000.

25.

Fierce headwinds on the fleet itself and.

We expect generally stable residuals, we had good pricing on 26 is.

And we have through our fleet rotation, we've turned those around into <unk> now with the model year 'twenty sixes and the buys you know again, the price and volume that we've seen that that helps us continue that model in fact, it gets us to the short hold now where the volumes that really perpetuate our ability to hit our.

So everything we're seeing and also the sort of channel management of how we dispose of vehicles will influence.

GPU and one other point is that while while this this also even excludes the fact that our F&I revenue doesn't even hit DB and hits revenues. So we think we still have a good bit of benefit coming from the Hertz car sales that will that will benefit <unk>, but.

Northstar D P U.

Targets.

Yes, no that's.

That's right Gil I think hey, good morning to Chris can see it.

Emily impact revenue as well so.

Yes, I think look we what we're looking at today is a very similar platform in 26 of its own and twenty-five we.

We're pretty bullish on the channels and how it affects CPU, but also total EBITDA.

<unk> generally stable residuals, we had good pricing on 26 is so everything we're seeing and also the sort of channel management and how we dispose of vehicles will influence.

Okay, Great and then Scott So I appreciate the color on on the composition of the fleet for next year. So as I understand it on the airport side GDP like off airport mid to high single digits mobility.

GPU and one other point is that while while this this also even excludes the fact that our F&I revenue doesn't even hit the Bu. It hits revenues. So we think we still have a good bit of benefit coming from the the Hertz car sales that will that will benefit <unk>, but.

Into 'twenty it sounds like you feel where you have the tactics in place to sustainably.

Sub 300.

There is there are several efforts out there with respect to pricing utilization customer satisfaction.

Ultimately impact revenue as well so.

That sandeep outlined.

Guessing should result in lower dose, so let's call that low single digit growth. So.

We're we're pretty bullish on all the channels and how it affects CPU, but also total EBITDA.

Is that all of these here its fleet outlook <unk> is it fair to think of those as I.

Okay, Great and then Scott So I appreciate the color on the composition of the fleet for next year, So as I understand it on the airport side GDP like off airport mid to high single digits mobility.

I guess, the algo going forward when we think about Hertz.

I guess is pivoting towards this more of a sort of car sales digital channel sort of focused platform.

And to 'twenty. It sounds like you feel where you have the tactics in place to sustainably get the sub 300.

Yes, I'll start I'm sure Sandeep and go on <unk> two I think it's a good initial view of the base platform, which is which is something we've tried to articulate in the call. The base rental car business, Yes, GPU driven Boe per day, our PD RP you those sort of historical metrics now.

There's there are several efforts.

Out there with respect to pricing utilization customer satisfaction.

That sandeep outlined.

<unk> should result in lower <unk>, so, let's call that low single digit growth. So.

Is that all of these here this week.

Outlook. This <unk> is it fair to think of those as.

I think over time, you'll see that get influenced by things that Gill referenced.

I guess, the algo going forward when we think about Hertz.

And the first question around some of the services and some of the things that are outside the traditional rental car and even some of the mobility things that we do today that we might do tomorrow. So obviously, our ability to sort of tell that story with additional metrics additional color commentary might change over time, but I do think the base rental car.

I guess is pivoting towards this more of a sort of <unk>.

Car sales digital channel sort of focused platform.

Yeah, I'll start I'm sure Sandeep and get them on a chairman to I think it's a good initial view of the base platform, which is which is something we've tried to articulate in the call. The base rental car business, Yes, GPU driven D O per day, our PD RP, you those sort of historical metrics nothing.

Our business.

In the near term will be influenced by those things you mentioned.

We tried to outline that a little bit in our script that obviously, we hope to see organic an industry supported <unk> growth, we're going to drive some scale and efficiencies to get dose per day benefits. We think the fleet set up is good for Gpus all of those are foundational, but over time I think youll see a few more.

Over time, you'll see that get influenced by things that Gill referenced you know in the first question around some of the services and some of the things that are outside the traditional rental car and even some of the mobility things that we do today that we might do tomorrow. So obviously, our ability to sort of tell that story with additional metrics additional.

Tangent start to hit.

Okay. Thank you.

Our next question comes from the line of Ian Zaffino from Oppenheimer <unk> Company. Your line is open.

Colored commentary might change over time, but I do think that the base rental car business in.

Hi, Thank you very much I was just wondering if you can maybe just give us a little bit color on.

In the near term will be influenced by those things you mentioned.

And then we tried to outline that a little bit you know in our script that obviously, we hope to see organic an industry supported <unk> growth, we're going to drive some scale and efficiencies to get D. O per day benefits. We think the fleet setup is good for <unk> all of those are foundational, but over time I think youll see.

Just a quarter in general as far as what have you seen from international inbound or corporate.

And also maybe any markets that have been particularly strong or particularly weak I know you've referenced the government shutdown was that specifically DC area or anything else going on there. Thanks.

And this is somebody if you adjust for.

More tangent start to hit.

Clarification, you're asking about Q4.

Okay. Thank you.

Our Irish Rupert actually three and four in Kansas. So so what we have seen some kind.

Our next question comes from the line of Ian Zaffino from Oppenheimer <unk> Company. Your line is open.

Yes looking for Triferic.

Hi, Thank you very much I was just wondering if you can maybe just give us a little bit of color on.

Awesome great. Thank you.

Yep.

Just a quarter in general as far as you know what have you seen from international inbound or corporate.

So.

Overall, starting I think high level there was.

Substantial implement from a demand profile in Q3 over when compared to Q2 on a year over year basis right. When you look at overall ample demand.

And also maybe any markets that are in particularly strong or particularly weak I know you referenced the government shut down was that specifically T C area or anything else going on there. Thanks.

But demand was largely I'd say slightly negative from all the way through June this year and then July onwards, it's been positive so theres been an uptick both on the leisure side of the business in Q3 as well as on the corporate side of the business and on let me first touch upon the corporate side of the business there's been a.

And Ian this is somebody if you just for clarification.

Clarification, you're asking about Q4.

On Iris Rupert.

Three and four and he can so so what you again soon.

Looking for going forward. Thanks.

Great. Thank you.

So.

Couple of points of improvement when we talk about Q3 over Q4, and I'd say, even more of an improvement sequentially within the quarter. When you look at August and September but it was still in negative territory. When we talk about corporate now that's turned positive in October as we moved into Q4, so positive trends on the corporate side.

Oral setting I think high level, there was a substantial improvement from a demand profile in Q3 over when compared to Q2 on a year over year basis right. When you look at overall airport demand airport demand was largely I'd say slightly negative from fab all the way.

Good.

Inbound had basically when it was down double digits. When you look at Q2.

Through June this year and then July onwards, it's been positive so theres been an uptick both on the leisure side of the business in Q3 as well as on the corporate side of the business.

June may and June.

We know some of the impact that that happened earlier on in the year.

And a lot of that reduction was from EMEA as.

And on <unk>, Let me first touch upon the corporate side of the business. There's been a couple of points of improvement when we talk about Q3 over Q4, and I'd say, even more of an improvement sequentially within the quarter. When you look at August and September but it was still a negative territory. When we talk about corporate now that's turned positive in October.

As well as Australia, and New Zealand.

What we've seen since then is basically a couple of points of improvement again and inbound demand through summer.

And improvement going into October as well, but inbound is still down.

I'd say low single digits as such on a year over year.

<unk> as we moved into Q4, so positive trends on the corporate side.

Basis.

Inbound had basically when it was down double digits. When you look at Q2.

And then finally, we come to.

The government side of the business.

That was that was down substantially in Q2 improved a bit in Q3.

June may and June right.

We know some of the impact that had happened earlier on in the year.

Since the start of November given that given everything around.

And a lot of that reduction was from EMEA.

As well as Australia, and New Zealand.

Government we've seen.

And we've seen.

What we've seen since then is basically a couple of points of improvement again in inbound demand through summer Ah and improvement going into October as well, but inbound is still down I'd say low single digits as such on a year over year.

That part of the business come down significantly in November, but again, we believe that in due course that will be resolved, but right now we see we see impact of that.

In November <unk>.

Overall, when I pull up and I asked the question, Okay, what does that mean for us.

I think Q3 was substantially better from a demand profile perspective relative to Q2 and that was represented in the pricing environment that we had seen at that point in time.

<unk> basis.

And then finally, we come to.

Government side of the business. So you know that was a that was down substantially in Q2 improved a bit in Q3.

As we stepped into Q4 and looked at October further improvement on the demand profile and I would say a pretty solid pricing environment as well.

Since the start of November given at a given everything around the federal government we have seen.

So that's the way things have shaped out so far.

And we have seen a that part of the business come down significantly in November but again, we believe that in vehicles that will be resolved, but right now we see we see impact of that in November.

Okay. Thanks, and then just maybe as a follow up can you talk about the strategy of you know as you go more off Prem is that insurance replacement.

Overall, when I pull up and I asked the question. Okay. What does that mean for US I think Q3 was substantially better from a demand profile perspective relative to Q2 and that wasn't are presented in the pricing environment that we had seen at that point in time.

Are there how do we think about maybe the competitive dynamics there.

What you kind of expect as far as metrics weather.

These are the what they would look like on Prem versus off Graham. Thanks.

Yes.

We stepped into Q4 and looked at October of <unk>.

Jump in and then Sandeep.

Can add a lot more color at least the way we look at it.

Further improvement in the demand profile and I would say a pretty solid pricing environment as well.

Really big market, it's more.

Less cyclical than the airports.

So that's that's the way things have shaped out so far.

We are in the space, we have the footprint and the opportunities or both.

Okay. Thanks, and then just maybe as a follow up can you talk about the strategy of off you know as you go more off Prem is that insurance replacement is that are there how do we think about maybe the competitive dynamics, there and what you kind of expect as far as metrics, whether you know.

B to C M b to b opportunities, there, including retail yes.

Yes.

It's.

To be transparent that wasn't less mature part of our business in terms of how we handle that part of the business.

These are the what they would look like on Prem versus off Graham. Thanks.

I'd say from a demand generation perspective, as well as from how we kind of operate at that part of the business.

Yeah, well I'll jump in and then Sandeep you can add a lot more color at least the way we look at it look at it so it's a really big market.

And we've been working on on improving our ability to generate demand there.

It's more a less cyclical than the airports, where you enter the space, we have the footprint and the opportunities or both.

Improvement on the replacement side of the business, but also in general.

Greater demand coming from.

From direct retail customers.

B to C N V to be opportunities there, including retail.

As well as from our partnership business. So I'd say overall the there is a commercial engine that's working on growing greater durable demand.

Yes.

It's.

To be transparent that was a less mature part of our business in terms of how we handle that part of the business I'd say from a demand generation perspective, as well as from how we kind of operate at that part of the business.

For Hertz as a brand overall and that that powers, both airport as well as off airport business.

Okay. Thank you very much.

And we've been working on on improving our ability to generate demand. There are there's been improvement on the replacement side of the business, but also in general.

Your next question comes from the line of Stephanie more from Jefferies. Your line is open.

Great. Thank you so much.

Later demand coming from from direct retail customers.

Great. Thank you. Thank you so much I wanted to touch on the early kind of early view on 2020 expectations really that the margin commentary.

As well as from our partnership business. So I'd say overall the there is a commercial engine that's working on growing greater durable demand.

Very helpful to have the range that you provided but given you guys have made tremendous tremendous steps forward in your own execution. It does remain pretty volatile underlying market in general.

For Hertz as a brand overall and that that powers, both airport as well as off airport business.

Okay.

Okay. Thank you very much.

Can you talk about what we would need to see to either hit the high end of that margin range or on the other side. If it ended up coming at the lower end of that range. How do you kind of balance between actions that are more within your control and then again the uncertainty of an underlying environment. Thank you.

Your next question comes from the line of Stephanie more from Jefferies. Your line is open.

Great. Thank you.

Great. Thank you. Thank you so much I wanted to touch on the early kind of early view on 2020 expectations that the margin commentary.

Yes.

Hey, Stephanie this is Scott I'll start, yes, I think theres a few things there one.

Obviously this is just the first indication of how we're kind of viewing 2006. So I think some of the details are still to be played out.

Very helpful to have the range that you provided.

But given you guys have made tremendous tremendous steps forward in your own execution. It does remain pretty volatile underlying market in general maybe talk about what we would need to see to either hit the high end of that margin range or on the other side of it ended up coming at the lower end of that range, how do you kind of balance.

Through our internal budget process and plus through the fourth quarter starts to materialize.

Giving us a better foundational view for 'twenty six but look I think there is theres a few things that we impact a little bit in some of my comments, but the plan is to generate a little bit of scale.

And the right way as I mentioned.

Between actions that are more within your control and then again the uncertainty of an underlying environment. Thank you.

Less so on airport and more so off airport in mobility, we think those businesses are.

A lot of room to grow so I think as sandy talked about some of the maturity we have from a revenue management perspective.

Hey, Stephanie this is Scott I'll start yeah, I think there's a few things there one you know.

Obviously this is just a first indication of how we're kind of viewing 26, I think some of the details are still to be played out.

And that scale will generate a little bit of benefit with continued process efficiency.

Through our internal budget process and plus through as the fourth quarter starts to materialize.

Those those alone I think are sort of the foundational components.

Giving us a better foundational view for 'twenty six but like I think there's there's a few things that we impact a little bit in some of my comments, but the plan is to generate a little bit of scale.

I think we're cautiously optimistic too about the the benefit of sort of GPU in the in the distribution channel, specifically Hertz car sales, which could drive further <unk> benefit and or revenue benefit.

And in the right way as I mentioned.

Less so on airport and more so off airport in mobility.

We think those businesses.

So I think as we sort of think about the boundaries of that.

Lot of room to grow so I think as sandy talked about some of the maturity we have from revenue management perspective, and and and that scale will generate a little bit of benefit with continued process efficiency like I think knows those alone I think are sort of the foundational components.

I think the the upside obviously there is there is additional sort of industry movement on sort of pricing that gives potential upside, but putting some of that to the side internally, we think it's our ability to ramp up.

The percentage of flow through of car sales through our Hertz car sales today.

I think we're cautiously optimistic too about the the benefit of sort of GPU in the in the distribution channel, specifically Hertz car sales, which could drive further deeper you benefit and or revenue benefit.

Sure.

2025% of cars through that side, our ability to get to north of 70, 580, plus percent will be a big driver of value.

So I think you know as as we sort of think about the boundaries of that.

So and our internal views that that's probably the the component that really drives us to the top end or beyond.

The the upside obviously, there's there's additional sort of industry movement on sort of pricing that gives potential upside, but putting some of that to the side internally. We think it's our ability to ramp up the sort of percentage of flow through of car sales through our hertz car sells today.

Great. That's very helpful. And then I just wanted to follow up.

On the incremental growth for next year.

Could you maybe talk about how much capex you would expect.

Kidney care plan.

Hey, you know what.

And then secondly, if they're thinking about this.

We're you know, we're sort of 2025% of cars through that side, our ability to get to north of 70, 580, plus percent will be a big driver of value.

Overall last cleanup, south maybe talk a little bit about how the 2026 person that's shaping up and how we should think about in terms of the mix for clients et cetera.

So and in our internal views that that's probably the the component that really drives us to the top end or beyond.

For 2025.

Yes, Okay. So I'll start and I'm sure you don't want to chime in too but.

Yes, there will be a.

Okay.

Our capex to the growth probably in the I'll call. It the 100 $150 million range. The specific number will sort of depend on a number of factors.

Great. That's very helpful. And then I just wanted the follow up to your point on the incremental growth for next year.

Can you maybe talk about how much capex you would expect.

Including vehicle type program versus risk a number of other things, but probably in that range.

Hum.

Dan.

Then secondly, as they're thinking about this overall Latin south maybe talk a little bit about how the 2026 branches are shaping up and how we should think about in terms of the mix for 2020, Thanks Arthur timeframe.

And I think you'll you'll probably see us and Gil mentioned this to the fleet plan and our fleet mix in any given year is dependent on a large number of factors.

I think we will probably we have an opportunity next year to probably look at.

Yes, okay. So I'll start.

Sure Gil I'll chime in too, but yeah.

Shifting into some slightly larger vehicles.

There will be a a capex to the growth probably in the I'll call. It the 100 $150 million range. The specific number will sort of depend on a number of factors.

Which which we think can play out in a number of geographies chart.

<unk> for us, but I don't think youre going to see a dramatic shift in our fleet plan, but we have an opportunity to.

Including vehicle type program versus risk a number of other things, but probably in that range.

<unk> grabbed some vehicles that we think will be.

Fruitful for us overall, but I think.

You mentioned I think in my script that we're probably 80% of the way, maybe even north of 80% of the way.

And I think you'll you'll probably see US you know and Gil mentioned as to the the fleet plan and our fleet mix in any given year is dependent on a large number of factors.

In line of sight to some good opportunistic buys in 2006, so we feel good about where it sits today. So I don't know Gail you want to.

But I think we'll probably we have an opportunity next year to probably look at a shift into some slightly larger vehicles, which which we think can play out in a number of geographies geographies for us, but I don't think youre going to see a dramatic shift in our fleet plan, but we have an opportunity to grab some vehicle.

That's a good summary, thanks.

All I would say is.

The volume of model year 'twenty six has been there and we've locked up kind of are our primary needs, but we also see spot buy opportunities as we come out throughout the year, we've already done several of those post our original round.

That we think will be.

Fruitful for US overall, but I think I mentioned I think in my script that we're probably 80% of the way, maybe even north of 80% of the way and line of sight to some good opportunistic buys in 26. So we feel good about where it sits today. So I don't know Gail you want to.

So.

We've got we're in a position and price as well as hit our targets. So we're in a position to be far more selective than last year and.

I think Scott said, it will end up with probably a larger richer mix of vehicles.

It's a good summary, thanks.

And we currently have but that's all aligned with what we're trying to achieve at the local market level and I would also say that.

Oh I would say is you know the volume of model year 'twenty six as it had been there and we've locked up kind of are our primary needs.

As again, we're thinking about when we're buying cars selling them.

But we also see spot buy opportunities as we come out throughout the year, we've already done several of those post our original round. So we've got we're in a position and price as well as hit our targets. So we are in a position to be far more selective than last year and.

I don't have that dealership mindset I would say some of the trim that normally we would default for just for cost purposes, where our lower cost vehicles, we're thinking more about the sale side of that and can we get paid for different trim packages, especially.

I think Scott said, it will end up with a probably a larger.

And.

Location level, all wheel drive four wheel drive probably be on the.

Oh, it richer mix of vehicles.

The most notable example, but theres a lot of trim packages that we're thinking more about on the sales side and what the residual value impacts are then just for a call. So I'll just say, we keep refining that model.

And we currently have but that's all aligned with what we're trying to achieve at the local market level and I would also say that you know is again, we're thinking about when we're buying cars selling them and I have that dealership mindset I would say some of the trim that normally we would default for just for <unk>.

And then probably one other last fall.

They are definitely more program cars available then I think we've seen over the last few years, so that gives us some additional flexibility.

Cost purposes, where our lower cost vehicles, we're thinking more about the sale side of that and Kim we get paid for different trim packages, especially at <unk>.

With mix, especially seasonally when it's a little harder.

To hit the peaks.

Location level, all wheel drive four wheel drive probably being the.

A large suvs and luxury vehicles, we've got more flexibility than we've had in the pass through program cars to manage that.

Thank you very much.

Thanks, Stephanie.

Our next question comes from the line of Dan Levy from Barclays. Your line is open.

And then probably one other last fall.

Hi, good morning, Thanks for taking the question.

They are definitely more program cars available then I think we've seen over the last few years, so that gives us some additional flexibility.

I wanted to ask about the plan to grow the fleet next year, specifically in light of the comments in your deck that some of the underlying RPT pressure is still being driven by market pricing pressures. So question is.

With mix, especially seasonally when it's a little harder.

To hit the peaks woods.

Large suvs and luxury vehicles, we've got more flexibility than we've had in the pass through program cars to manage that.

Do you think that fleet levels are right sized in the industry or is there excess fleet and how do you think the market will absorb your plans to growth. How can you ensure that you will have positive RPE when expanding your fleet next year.

Thank you very much.

Thanks, Stephanie.

Our next question comes from the line of Dan Levy from Barclays. Your line is open.

Hi, good morning, Thanks for taking the questions.

Yeah, Let me start I know Sandeep, Scott the ultimate probably Scott as well. It's a good question right. So I think Scott laid out our view well in that you've got to look at this at a segment level because it's all segments are not created equal right and I think.

I wanted to ask about the plans to grow the fleet next year and specifically in light of the comments in your deck that some of the underlying RPT pressure is still being driven by market pricing pressure. So question is.

Again airport off airport and mobility.

Do you think that fleet levels are right sized in the industry or is there excess fleet and how do you think the market will absorb your plans to grow fleet. How can you ensure that you will have positive RPE when expanding your fleet next year.

Off airport mobility, we'll grow it faster.

Faster rates than GDP, because we've got the ability from a demand generation.

To generate that and continue the momentum we're already seeing in those businesses. The airport piece of the equation I think we're most of the root of your question comes from right.

Yeah, Let me, let me start on Oh, Sandy Scott Dalton, probably Scott as well. It's a good question right. So I think Scott laid it out you know our view well in that you've got to look at this at a segment level as all segments are not created equal right and I think you know again airport all fair Board and.

As we I mean, we view we view it more in terms of we can grow.

More or less at GDP, we're not I'll, just say, we're not after gaining market share here.

But there is a natural growth now that we've done our fleet rotation and have our unit economics more in line with where they should be that gives us the right to grow again in all three segments, but we're going to be very disciplined in our approach here.

Mobility.

Off airport mobility will grow it.

Faster rates than GDP, because we've got the ability from a demand generation.

To generate that and continue the momentum we're already seeing in those businesses. The airport piece of the equation I think where most of the root of your question comes from right.

The only thing I'll add here is basically even at the airports I think if I look at the overall pricing environment from the start of the year until we're sitting here right now I think.

We I mean, we view we view it more in terms of we can grow.

That pricing environment, and especially in Q3, and then as we look.

More or less at GDP, we're not I'll, just say, we're not after gaining market share here.

So far what we have seen in Q4 is much improved right now I'm talking about just the overall industry backward looking it's much improved.

But there is a natural growth now that we've done our fleet rotation and have our unit economics more in line with where they should be and gives us the right to grow again in all three segments, but we're going to be very disciplined in our approach here.

And then the slate of commercial initiatives that we had outlined.

There's momentum there and you've seen the impact of that in.

At the tail end of Q3 and so.

I expect that to take off for the foothold in the coming quarters and have an impact in 2026.

And the only thing I'll add here is basically even at the airports I think our if I look at the overall pricing environment from the start of the start of the year until we're sitting here right now I think.

Okay, great. Thank you.

As a follow up wanted to just ask about the utilization in the quarter and maybe you can just unpack.

That pricing environment, and especially in Q3, and then as we look at our so far what we've seen in Q4 is much improved right now I'm talking about just the overall industry backward looking it's much improved.

And I think the commentary here.

In the deck, but it was seemed like.

Close to a quarterly record how sustainable is that and what type of utilization can we expect.

And then the slate of commercial initiatives that we had outlined.

There's there's momentum there and you've seen the impact of that in.

Into next year.

Yes, no great question.

At the tail end of Q3, and so I expect that to take off of the foothold in the coming quarters and have an impact in 2026.

We've been building momentum with utilization over the last several quarters.

And I attribute that principally too.

Okay, great. Thank you.

Our operational processes are starting to get some real traction to eliminate out of service vehicles and idle time in general.

As a follow up wanted to just ask about the utilization in the quarter and maybe you can just unpack.

And I think the commentary here.

Along with the.

In the deck, but it was seemed like.

The commercial team has done a great job with better demand generation. It all starts with demand generation, but we're starting to sweat our assets.

Rose to a quarterly record just how sustainable is that and what type of utilization can we expect.

And as you've seen I think we made some big leaps here.

Into next year.

There is more room to run candidly.

Yes, no great question, you know I I see we've been building momentum with utilization over the last several quarters and I attributed principally to.

Albeit the spike in the recalls create a headwind for us in the short run the fourth quarters, even more of a headwind than we saw in the.

The third quarter, but.

Our operational processes are starting to get some real traction to eliminate out of service vehicles and idle time in general.

I'll, just say, we'll never be satisfied with our performance in this area, where just the team's wired for continuous improvement.

And I think the other big.

Along with the.

The commercial team has done a great job with better demand generation. It all starts with demand generation, but we're starting to sweat our.

Item aside from the.

Operational processes as plays into how we're selling cars because.

And as you've seen I think we made some big leaps here I think there is more room to run candidly, albeit the spike in the recalls create a headwind for us in the short run the fourth quarters, even more of a headwind than we saw in the third quarter, but I'll just say we will not.

Traditionally.

And Sandeep talked about total utilization, which is really the way we look at it internally. It's not just the operational units total utilization because we own those vehicles the big difference being the inventory we have that is.

For sale.

Never be satisfied with our performance in this area, where just the team's wired for continuous improvement.

Cars that.

Take the turnaround times there have been very long. So we have process engineer that and some big improvements, which you see in the quarter on total U, but ultimately as we sell digitally and we can continue to operate vehicles to the point of sale without taken them out of service for a month or two to say.

And I think the other big item aside from the operational processes as plays into how we're selling cars because.

Traditionally.

And Sandeep talked about total utilization, which is really the way we look at it internally is not just operational units total utilization because we own those vehicles the big difference being the inventory we have that as you know.

Well that.

That creates tremendous opportunities for total utilization, so thats really our focus and strategy.

Great. Thank you.

And this concludes the Hertz Global Holdings' third quarter 2025 earnings conference call. Thank you for your participation.

For sale.

For cars that.

The turnaround times, there have been very long so we've process engineer that and some big improvements, which you see in the quarter on total U, but ultimately as we sell digitally and we can continue to operate vehicles to the point of sale without taken them out of service for a month or two to sale.

That creates tremendous opportunities for total utilization, so that's really our focus and strategy.

Great. Thank you.

And this concludes the Hertz Global Holdings' third quarter 2025 earnings conference call. Thank you for your participation.

Okay.

Q3 2025 Hertz Global Holdings Inc Earnings Call

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