Q2 2026 Sixt SE Earnings Call

August 13, 2026

[Company Representative] (Sixt): As always, the presentation as such is available in the investor relations section of our corporate website, ir.sixt.com. With that, I would like to hand it over to our CFO, Franz Weinberger.

[Company Representative] (SIXT): As always, the presentation as such is available in the investor relations section of our corporate website, ir.sixt.com. With that, I would like to hand it over to our CFO, Franz Weinberger.

Speaker #1: The presentation, as such, is always available in the Investor Relations section of our corporate website.

Speaker #2: Dot six dot com.

Speaker #1: And with that, I would like to hand it over to our CFO, Franz Weinberger.

Speaker #2: Hello, ladies and gentlemen, dear analysts and investors. Thank you for taking the time today for Sixt. Let me start with the headline: In the first half of 2026, Sixt Group revenue and profit...

Franz Weinberger: Hello, ladies and gentlemen, dear analysts and investors. Thank you for taking the time today for Sixt. Let me start with the headline. In H1 2026, Sixt grew revenue and profit, and it did so against the general trend of our industry. Total revenue in H1 exceeded EUR 2 billion for the first time in our company's history, up 11.3% on a currency adjusted basis. EBT increased by EUR 35 million or 39.4% to EUR 125 million. I want to put this in context because it didn't happen in an easy environment. Two of our most relevant competitors reported declining or fairly stable top line in the same period. Across the industry, we see significant losses with major players. Against that backdrop, Sixt's growing revenue and expanding earnings is not a market effect. It is the result of our long-term and consistently executed strategy.

Speaker #2: And it did so against the channel trend of our industry. Total revenue in the first half exceeded $2 billion for the first time in our company's history.

Speaker #2: Up 11.3% on a currency-adjusted basis. EBITDA increased by €35 million, or 39.4%, to €125 million. I want to put this in context, because it didn't happen in an easy environment.

Speaker #2: Two of our most relevant competitors reported declining or barely stable top line in the same period. Across the industry, we see significant losses with major players.

Speaker #2: Against that backdrop, Sixt's growing revenue and expanding earnings are not a market effect. They are the result of our long-term and consistently executed strategy.

Speaker #2: Our premium share reached 62% in the quarter, and over the first half-year, we added around 25,000 premium vehicles year on year. We continue to scale Sixt One.

Franz Weinberger: Our premium share reached 62% in the quarter, and over the H1, we added around 25,000 premium vehicles year-on-year. We continued to scale SIXT ONE, our loyalty program, which has been available in all corporate countries since the beginning of Q2. Meanwhile, the program has more than 1.8 million members. Around 1 million active users in our app also mark a new record for a Q2. On the back of this performance, we confirm our full year guidance. Revenue of EUR 4.45 to EUR 4.6 billion, and an EBT margin in the area of 10%. As a reminder on seasonality, more than 70% of our full year earnings are typically generated in H2. As you all know, Q3 is our decisive quarter. Let me turn to three developments since our last call. Financing, brand, and partnerships.

Franz Weinberger: Our premium share reached 62% in the quarter, and over the H1, we added around 25,000 premium vehicles year-on-year. We continued to scale SIXT ONE, our loyalty program, which has been available in all corporate countries since the beginning of Q2. Meanwhile, the program has more than 1.8 million members. Around 1 million active users in our app also mark a new record for a Q2. On the back of this performance, we confirm our full year guidance. Revenue of EUR 4.45 to 4.6 billion, and an EBT margin in the area of 10%. As a reminder on seasonality, more than 70% of our full year earnings are typically generated in H2. As you all know, Q3 is our decisive quarter. Let me turn to three developments since our last call. Financing, brand, and partnerships.

Speaker #2: Our loyalty program, which has been available in all corporate countries since the beginning of the second quarter. Meanwhile, the program has more than 1.8 million members. Around 1 million active users in our app also mark a new record for a second quarter.

Speaker #2: On the back of this performance, we confirm our full-year guidance: revenue of €4.45 to €4.6 billion and an EBITDA margin in the area of 10%.

Speaker #2: As a reminder, on seasonality, more than 70% of our full-year earnings are typically generated in the second half. As you all know, the third quarter is our decisive quarter.

Speaker #2: Let me turn to three developments since our last call: financing, brand, and partnerships. On financing, on July 14, 2026, we issued a $500 million euro benchmark bond.

Franz Weinberger: On financing, on 14 July 2026, we issued a EUR 500 million benchmark bond. Demand was exceptional. The order book was more than three times oversubscribed at over EUR 1.6 billion, and we priced at a coupon of 3.75% and a spread of 90 basis points. The tightest in Sixt's history. Proceeds will fund premium fleet, our station network, and investments in technology. The bond matures in January 2031 and is rated BBB by Standard & Poor's. Let me also put this into context. This is not a friendly market to issue into. Elevated volatility, shifting rate expectations, and investors who have become highly selective, particular towards our industry. That we achieved the tightest spread in our history in precisely this environment is the capitalist market's own verdict on our balance sheet and the consistency of our strategy.

Speaker #2: Demand was exceptional. The order book was more than three times oversubscribed, at over €1.6 billion, and we priced at a coupon of 3.75% and a spread of 90 basis points.

Speaker #2: The tightest in Sixt's history. Proceeds will fund premium fleet, our station network, and investments in technology. The bond matures in January 2031 and is rated BBB by Standard & Poor's.

Speaker #2: Let me also put this into context: this was not a friendly market to issue into. Elevated volatility, shifting rate expectations, and investors who have become highly selective, particularly towards our industry.

Speaker #2: That we achieved the tightest spread in our history in precisely this environment is the capitalist market's own verdict on our balance sheet and the consistency of our strategy.

Speaker #2: We read it as confidence, and as an obligation to keep managing the company with the same discipline. As already mentioned, Sixt One has meanwhile reached 1.7 million members.

Franz Weinberger: We read it as confidence and as an obligation to keep managing the company with the same discipline. As already mentioned, SIXT ONE has meanwhile reached 1.7 million members, including 1 million users in the US alone. The acceptance of our customers is a very good proof point for our customer-centric strategy. In addition, we also signed several new global partnerships in the quarter. Most importantly, in addition to our partnership with Delta, Sixt has become a featured rental car partner of American Airlines AAdvantage program, giving us access to more than 115 million AAdvantage members. This new partnership with the second largest airline of the United States again demonstrates we are now a someone. Let me turn to our branch network.

Speaker #2: Including 1 million users in the US alone. The acceptance by our customers is a very good proof point for our customer-centric strategy. In addition, we also signed several new global partnerships in the quarter. Most importantly, in addition to our partnership with Delta, Sixt has become a featured rental car partner of the American Airlines AAdvantage Program, giving us access to more than 115 million AAdvantage members.

Speaker #2: This new partnership with the second largest airline of the United States again demonstrates we are now a someone. Let me turn to our branch network.

Franz Weinberger: Let me turn to our branch network. In the Q2 alone, we opened 12 new branches, and we launched one of the largest US brand campaigns in our history, strengthening Sixt's premium positioning in one of our most important growth markets. Let's have a look at one of our recent clips in the US before we move to the financials. Please.

Speaker #2: In the second quarter alone, we opened 12 new branches, and we launched one of the largest U.S. brand campaigns in our history, strengthening Sixt's premium positioning in one of our most important growth markets.

Franz Weinberger: In the Q2 alone, we opened 12 new branches, and we launched one of the largest US brand campaigns in our history, strengthening Sixt's premium positioning in one of our most important growth markets. Let's have a look at one of our recent clips in the US before we move to the financials. Please.

Speaker #2: Let's have a look at one of our recent clips in the US before we move to the financials. Please.

Speaker #3: Yo. You want a stallion rental for a pony price? Go book with SIXT.

Operator: Yo! You want a stallion rental for a pony price? Go book with Sixt. Get real horsepower. Rent premium cars at affordable prices from Sixt. Man, I just love horsepower. Sixt. Rent a car.

[Video Narrator]: Yo! You want a stallion rental for a pony price? Go book with Sixt. Get real horsepower. Rent premium cars at affordable prices from Sixt. Man, I just love horsepower. Sixt. Rent a car.

Speaker #4: Get real horsepower. Rent premium cars at affordable prices from SIXT.

Speaker #5: Man, I just love horsepower.

Speaker #4: Sixt, rent the car.

Speaker #2: Okay, let's get back from horsepower to the numbers. Revenue in the second quarter reached close to €1.2 billion, up 9.9% year on year.

Franz Weinberger: Okay, let's get back from horsepower to the numbers. Revenue in the Q2 reached close to EUR 1.2 billion, up 9.9% year on year. Taking a longer term view, that is up 90% versus the Q2 of 2019. All regions contributed. In Germany, revenue grew by 9.1% to EUR 318 million. In Europe, excluding Germany, revenue grew 13% to EUR 515 million, our strongest regional growth rate. In North America, revenue grew 6.3% to EUR 356 million, despite consumer confidence being under pressure. On an FX adjusted basis, growth was even 7.6%. The currency headwind from the weaker U.S. dollar has become markedly smaller than in our prior quarters, though it has not fully disappeared. We grew the average fleet to 216,800 vehicles, up 9.6%. Again, fleet growth was inside the demand, slightly below revenue growth, which is exactly the discipline that keeps our utilization strong.

Speaker #2: Taking a longer-term view, that is up 90% versus the second quarter of 2019. All regions contributed. In Germany, revenue grew by 9.1% to €318 million.

Speaker #2: In Europe, excluding Germany, revenue grew 13% to €515 million, our strongest regional growth rate. In North America, revenue grew 6.3% to €356 million, despite consumers' confidence being under pressure.

Speaker #2: On an FX-adjusted basis, growth was even 7.6%. The currency headwinds from the weaker US dollar have become markedly smaller than in our prior quarters, though they have not fully disappeared.

Speaker #2: We grew the average fleet to 216,800 vehicles, up 9.6%. Again, fleet growth was inside the demand—slightly below revenue growth, which is exactly the discipline that keeps our utilization strong.

Speaker #2: On the premium side, we increased our premium share, measured by the value of inflated vehicles, to 62%. Let me now walk you through the EBITDA bridge.

Franz Weinberger: On the premium side, we increased our premium share, measured by the value of in-fleet vehicles, to 62%. Let me now walk you through the EBT bridge. Compared to Q2 2025, EBT increased by EUR 15.7 million or 14.6% to EUR 123 million. As in the Q1, revenue growth was the primary driver, contributing EUR 106.8 million or 9.9%. On the cost side, except fleet expenses, all cost position grew at a slower rate than revenue, a proof point of our strong cost discipline. Fleet expenses, so repairs, insurance, maintenance, and reconditioning for rental operations increased by EUR 43.4 million or 17.1%, driven mainly by insurance, fuel, registration fees, and higher vehicle tax. Personnel costs increased by EUR 5.4 million or 2.9%, reflecting continued investments in key personnel. Depreciation and amortization increased by EUR 15.7 million or 7.5%, in line with fleet and revenue growth.

Speaker #2: Compared to the second quarter of 2025, EBITDA increased by €15.7 million, or 14.6%, to €123 million. As in the first quarter, revenue growth was the primary driver, contributing €106.8 million, or 9.9%.

Speaker #2: On the cost side, exact fleet expenses and all cost positions grew at a slower rate than revenue—a proof point of our strong cost discipline.

Speaker #2: Fleet expenses saw repairs, insurance, maintenance, and reconditioning for rental operations increase by €43.4 million, or 17.1%, driven mainly by insurance, fuel, registration fees, and higher vehicle tax.

Speaker #2: Personnel costs increased by €5.4 million, or 2.9%, reflecting continued investments in key personnel. Depreciation and amortization increased by €15.7 million, or 7.5%, in line with fleet and revenue growth.

Speaker #2: Other operating items increased by €25.8 million, or 8.9%, also in line with fleet and revenue growth. The financial result only increased by €0.8 million, or 2.4%, slightly supported by a higher share of short-term leasing that don't need separate financing, but also by better refinancing conditions.

Franz Weinberger: Other operating items increased by EUR 25.8 million or 8.9%, also in line with fleet and revenue growth. The financial results only increased by EUR 0.8 million or 2.4%, slightly supported by a higher share of short-term leasing that do not need separate financing, but also by better refinancing conditions. For the complete H1, EBT improved strongly from EUR 89.8 million to EUR 125.1 million, up 39.4%. Let me directly address our slight decrease in corporate EBITDA for the North America segment in the H1 of around EUR 5 million. Two factors are behind it. A more cautious assessment of the H2, softer U.S. consumer sentiment and used car prices were reflected in our residual value assumptions and receivable provisions in line with our regular valuation processes and continued investments in the market, including one of the largest advertising campaigns in our U.S.

Speaker #2: For the complete first half, EBITDA improved strongly, from €89.8 million to €125.1 million, up 39.4%. Let me directly address our slight decrease in corporate EBITDA for the North America segment in the first half of the year, which was around €5 million.

Speaker #2: Two factors are behind it: a more cautious assessment of the second half—softer US consumer sentiment and used car prices were reflected in our residual value assumptions and receivable provisions, in line with our regular valuation processes—and continued investments in the market, including one of the largest advertising campaigns in our US history, which we have just seen.

Franz Weinberger: history, which we just have seen. Let me now turn to the outlook for the remainder of the year. As always, let me start with the environment we are operating in. The macro picture has weakened further since our last call. The International Monetary Fund, July 2026 World Economic Outlook now projects 2026 GDP growth of just 0.7% for Germany, 0.9% for Europe, and 2.3% for the United States. Germany and Europe, below the figures we cited in May. The United States, unchanged. In Germany specifically, the Ifo Institute's July 2026 survey shows the investment climate business balance at -3.1 points, and the share of companies that have canceled investment projects has risen from 9% to 16%. This is a genuinely weak domestic backdrop. On travel and tourism, the picture remains more constructive. The World Travel & Tourism Council still projects global travel sector GDP growth of 3.2% for 2026.

Speaker #2: Let me now turn to the outlook for the remainder of the year. As always, let me start with the environment we are operating in.

Franz Weinberger: Let me now turn to the outlook for the remainder of the year. As always, let me start with the environment we are operating in. The macro picture has weakened further since our last call. The International Monetary Fund, July 2026 World Economic Outlook now projects 2026 GDP growth of just 0.7% for Germany, 0.9% for Europe, and 2.3% for the United States. Germany and Europe, below the figures we cited in May. The United States, unchanged. In Germany specifically, the Ifo Institute's July 2026 survey shows the investment climate business balance at -3.1 points, and the share of companies that have canceled investment projects has risen from 9% to 16%. This is a genuinely weak domestic backdrop. On travel and tourism, the picture remains more constructive. The World Travel & Tourism Council still projects global travel sector GDP growth of 3.2% for 2026.

Speaker #2: The macro picture has weakened further since our last call. The International Monetary Fund's July 2026 World Economic Outlook now projects 2026 GDP growth of just 0.7% for Germany, 0.9% for Europe, and 2.3% for the United States.

Speaker #2: Germany and Europe are below the figures we cited in May. The United States is unchanged. In Germany specifically, the IFO Institute's July 2026 survey shows the investment climate balance at minus 3.1 points, and the share of companies that have canceled investment projects has risen from 9% to 16%.

Speaker #2: This is a genuinely weak domestic background. On travel and tourism, the picture remains more constructive. The World Travel and Tourism Council still projects global travel sector GDP growth of 3.2% for 2026.

Speaker #2: In particular, Europe currently has a rather constructive travel sentiment. As mentioned, US consumer sentiment, as measured by the University of Michigan index, is down 10.5% year-over-year and remains well below the 2024 and 2025 levels for the same month.

Franz Weinberger: In particular, Europe currently has a rather constructive travel sentiment. As mentioned, the U.S. consumer sentiment, as measured by the University of Michigan Consumer Sentiment Index, is down 10.5% year-on-year and remains well below the 2024 and 2025 levels for the same month. This is anything but an easy environment for our U.S. business. On residual values, the picture is similarly two-sided. Cox Automotive points to a softer H2 in the U.S., offsetting a stronger than expected start to the year. Their Manheim Used Vehicle Value Index fell to 210 in July, up 1.3% year-on-year, but down 1.4% versus June, and now sits around 2.5% below its March peak. As mentioned, we have taken that into account in our Q2 evaluation. In summary, the backdrop has softened further since May. Travel demand, particularly in Europe, remains constructive.

Speaker #2: This is anything but an easy environment for our US business. On residual values, the picture is similarly two-sided. Cox Automotive points to a softer second half view in the US, offsetting a stronger-than-expected start to the year. Their Mannheim Used Vehicle Value Index fell to 210 in July, up 1.3% year on year but down 1.4% versus June, and now sits around 2.5% below its March peak.

Speaker #2: As mentioned, we have taken that into account in our second quarter evaluation. In summary, the backdrop has softened further since May. Travel demand, particularly in Europe, remains constructive.

Speaker #2: Based on what we delivered in the first half and what we see for the remainder of the year, we confirm our full-year 2026 guidance.

Franz Weinberger: Based on what we delivered in H1 and what we see for the remainder of the year, we confirm our full year 2026 guidance. Revenue of EUR 4.45 billion to EUR 4.6 billion, compared with EUR 4.3 billion in 2025, and an EBT margin of around 10%, in the area of 10%, up from 9.4% in 2025. On the risk side, we continue to watch continued political and economic uncertainty and its impact on oil prices and jet fuel supply, inflation pressure on travel budgets and interest rates as well, residual value headwinds and weak consumer sentiment in the US. On the opportunity side, the summer travel business in Europe seems to be constructive. Obviously, an economic recovery, especially in Europe, would help our business, especially our B2B products.

Speaker #2: Revenue of €4.45 billion to €4.6 billion, compared with €4.3 billion in 2025, and an EBITDA margin of around 10%, in the area of 10%, up from 9.4% in 2025.

Speaker #2: On the risk side, we continue to watch ongoing political and economic uncertainty and its impact on oil prices and jet fuel supply, as well as inflation pressure on travel budgets and interest rates.

Speaker #2: Residual value headwinds and weak consumer sentiment in the US. On the opportunity side, the summer travel business in Europe seems to be constructive. Obviously, an economic recovery, especially in Europe, would help our business, particularly our B2B products.

Speaker #2: A potential turn towards stronger consumer sentiment and tourism in the US, and a more favorable residual value development in the US, could currently also benefit our business there.

Franz Weinberger: A potential turn towards stronger consumer sentiment and tourism in the US and a more favorable residual value development in the US would also benefit our business there. To summarize the H1, revenue above EUR 2 billion for the first time in a H1. EBT up EUR 35 million to EUR 125 million. Premium share at 62% in Q2. New global partnership signed, a benchmark bond placed at the tightest spread in our history, and full year guidance confirmed. We will continue to manage the business as we always do, with a tight fleet, clear cost discipline, and the long-term confidence that comes from a strategy that has consistently delivered. With that, I would like to thank you for your attention, and we are happy to open the line for question and answers.

Speaker #2: To summarize the first half: revenue exceeded €2 billion for the first time in a first half-year; EBITDA increased by €35 million to €125 million; premium share reached 62% in the second quarter; new global partnerships were signed; a benchmark bond was placed at the tightest spread in our history; and full-year guidance was confirmed.

Speaker #2: We will continue to manage the business as we always do—with a tight fleet, clear cost discipline, and the long-term confidence that comes from a strategy that has consistently delivered.

Speaker #2: With that, I would like to thank you for your attention, and we are happy to open the line for questions and answers. Thank you very much, Franz.

[Company Representative] (Sixt): Thank you very much, Franz. Before we start with the Q&A session, a little technical note. Please use the raise hand function in Microsoft Teams if you have a question, and I will call you by name. Before speaking, we will activate your line and ask you to unmute yourself. If you wish to withdraw your question, click on the hand icon again. So there is the first question coming from Chi Wa Yang, calling from UBS. Chi Wa, your line is now open.

[Company Representative] (SIXT): Thank you very much, Franz. Before we start with the Q&A session, a little technical note. Please use the raise hand function in Microsoft Teams if you have a question, and I will call you by name. Before speaking, we will activate your line and ask you to unmute yourself. If you wish to withdraw your question, click on the hand icon again. So there is the first question coming from Chi Wa Yang, calling from UBS. Chi Wa, your line is now open.

Speaker #2: Before we start with the Q&A session, a little technical note: please use the 'raise hand' function in Microsoft Teams if you have a question.

Speaker #2: And I will call you by name. Before speaking, we will activate your line and ask you to unmute yourself. If you wish to withdraw your question, click on the hand icon again.

Speaker #2: So, there is a first question coming from Qihua Yang, calling from UBS. Qihua, your line is now open.

Speaker #3: Thank you.

Franz Weinberger: Hi, Chi Wa.

Speaker #4: Hi, if I could start with two questions, please. The first one is that if I look at the full-year guidance range for revenue, the lower end actually means basically no growth, or flat year-on-year, in H2.

Chi Wa Yang: Hi. If I could start with two questions, please. The first one is that if I look at the full year guidance range for revenue, the lower end actually means basically no growth or flat year-on-year H2. I was wondering, I could understand in the current environment, and also considering the importance of Q3, you might be reluctant to maybe narrow or update the revenue guidance. But I would just ask you to clarify, what are the points you are considering not to point to maybe the upper end or even higher revenue in light of what you have achieved in H1? That's the first question. Second one, appreciate it if we could go back a little bit to corporate EBITDA. Does that mean the return on investment or your expansion in North America is having a diminishing return?

[Analyst] (UBS): Hi. If I could start with two questions, please. The first one is that if I look at the full year guidance range for revenue, the lower end actually means basically no growth or flat year-on-year H2. I was wondering, I could understand in the current environment, and also considering the importance of Q3, you might be reluctant to maybe narrow or update the revenue guidance. But I would just ask you to clarify, what are the points you are considering not to point to maybe the upper end or even higher revenue in light of what you have achieved in H1? That's the first question. Second one, appreciate it if we could go back a little bit to corporate EBITDA. Does that mean the return on investment or your expansion in North America is having a diminishing return?

Speaker #4: I was wondering—I mean, I could understand in the current environment and also considering the importance of Q3—you might be reluctant to narrow or update the revenue guidance, but I would just ask you to clarify: what are the points you are considering not to point to, maybe, the upper end or even higher revenue in light of what you have achieved in H1?

Speaker #4: That's the first question. And the second one, I'd appreciate it if we could go back a little bit to corporate EBITDA. So, does that mean the return on investment or your expansion in North America is having a diminishing return?

Speaker #4: And what would you do in the region to address this point? I understand the residual values are out of the control from the company, but what could you do inside of your control to do a to have a better bottom line, in fact, in North America?

Chi Wa Yang: What would you do in the region to address this point? I understand the residual values are out of the control from the company, but what could you do inside of your control to have a better bottom line effect in North America? Thank you.

[Analyst] (UBS): What would you do in the region to address this point? I understand the residual values are out of the control from the company, but what could you do inside of your control to have a better bottom line effect in North America? Thank you.

Speaker #4: Thank you.

Speaker #2: Sure. First of all, with respect to guidance—I mean, I said it in the beginning of my speech—look at the environment we are acting in.

Franz Weinberger: Sure. First of all, with respect to guidance, I said it in the beginning of my speech, look at the environment we are acting in. We see the industry being heavily under pressure. I guess you have all seen the numbers by Hertz and Avis and Europcar. Europcar obviously was close to 8% down in revenue. Avis, barely stable, but also with a low minus. The volatility in our industry is very high and if you also listen to other operators like TUI or Lufthansa, the bookings of our customers are very short and even shorter than in the previous years. That's also what we experienced totally in line with the other names I just mentioned, also during this summer. The Q3 is decisive, as I mentioned.

Speaker #2: We see the industry being heavily under pressure. I guess you have all seen the numbers from Hertz, Avis, and Europcar. Europcar, obviously, with close to 8% down in revenue.

Speaker #2: Avis is barely stable, but also with a low minus. The volatility in our industry is very high, and if you also listen to other operators, like TUI or Lufthansa, the bookings of our customers are very, very short, and even shorter than in previous years.

Speaker #2: And that's also what we experienced, totally in line with the other names I just mentioned. Also, during this summer—and the third quarter is decisive, as I mentioned.

Speaker #2: So, I totally understand your question. But given the environment we are operating in, I understand you are looking at it from a conservative perspective.

Franz Weinberger: I totally understand your question, but given this environment we are acting in, I understand you look at it from a perspective of being conservative. But based on what I just said, we decided to not change the guidance now, and we see this as our current guidance. With respect to corporate EBITDA, maybe let me start with a half-year view on North America first before I come into your question, because we shouldn't just look at it from a quarterly perspective. Corporate EBITDA came in EUR 4.8 million below the prior year if we look at it on a half-year view. If we adjust it for the US brand campaign, which I just mentioned, and which was one of the largest in our company's history in the US. The segment would have been roughly at the prior year level.

Speaker #2: But based on what I just said, we decided not to change the guidance now, and we see this as our current guidance.

Speaker #2: With respect to corporate EBITDA, maybe let me start with a half-year view on North America first, before I come to your question, because we shouldn't just look at it from a quarterly perspective.

Speaker #2: Corporate EBITDA came in €4.8 million below the prior year. If we look at it from a half-year perspective, if we adjust for the US brand campaign, which I just mentioned and which was one of the largest in our company's history in the US, the segment would have been roughly at the prior year level.

Speaker #2: And that is despite two valuation effects which I can—or which I would like to explain again. Behind both of these effects lies a more cautious assessment of the second half of the year.

Franz Weinberger: And that is despite two valuation effects, which I would like to explain again. Behind both of these effects lies a more cautious assessment of the H2. Two data points, I think, illustrate why. The University of Michigan Consumer Sentiment Index that I just mentioned stood more than 10% below its prior year level in July. The US used car prices after their seasonal peak in March has softened by around 2.5% by July, according to Cox Automotive. This environment reaches our P&L level mainly through, besides revenue, two lines. First, the residual variance you just mentioned. Cox Automotive now expects a weaker H2 in the US, and through our regular evaluation process, this is reflected directly in our depreciation. Second, given the weaker consumer sentiment, we also strengthened our provisioning for the North American receivables portfolio.

Speaker #2: And two data points, I think, illustrate why the University of Michigan consumer sentiment that I just mentioned stood more than 10% below its prior year level in July.

Speaker #2: And the US used car prices, after their seasonal peak in March, have softened by around 2.5% by July, according to Cox. This environment reaches our P&L level mainly through, besides revenue, two lines. First, the residual values you just mentioned—Cox now expects a weaker second half in the US.

Speaker #2: And through our regular evaluation process, this is reflected directly in our depreciation. Second, given the weaker consumer sentiment, we also strengthened our provisioning for the North American receivables portfolio.

Speaker #2: And as always, I mean, you know us for quite some time—we would rather be prepared than surprised. So in short, we have taken a conservative view on the second half with this respect, and this is already reflected in the numbers that you see today.

Franz Weinberger: As always, you know us for quite some time, we would rather be prepared than surprised. In short, we have taken a conservative view on the H2 with this respect, and this is already reflected in the numbers that you see today. On a more, let's say, really longer term view, we don't believe that the US should, in a steady-state mode, be less attractive and bring us less margin than our other countries and our other regions do. But obviously, we are far away from a leadership like in Germany. We are on a growth rate and a growth track there. But in general, we don't think the market offers us lower margin perspectives than other countries or other regions do. That was a long answer, but I hopefully got to the point that you asked.

Speaker #2: On a more, let's say, really longer-term view, we don't believe that the US should, in a steady-state mode, be less attractive and bring us less margin than our other countries.

Speaker #2: And our other regions do, but obviously we are far away from a leadership like in Germany. We are on a growth rate and a growth track there.

Speaker #2: But in general, we don't think the market offers us lower margin perspectives than other countries or other regions do. That was a long answer, but hopefully I got to the point that you asked.

Speaker #4: Of course, of course. Thank you very much. Very helpful.

Chi Wa Yang: Of course. Thank you very much. Very helpful.

[Analyst] (UBS): Of course. Thank you very much. Very helpful.

Speaker #2: Thank you. And the next question is coming from Constantine Hesse, calling from Jefferies. Constantine, your line is now open.

[Company Representative] (Sixt): Thank you. The next question is coming from Constantin Hesse calling from Jefferies. Konstantin, your line is now open.

[Company Representative] (SIXT): Thank you. The next question is coming from Constantin Hesse calling from Jefferies. Konstantin, your line is now open.

Speaker #3: Hi, Constantine.

Speaker #5: Hi, everyone. Can you hear me okay?

Franz Weinberger: Hi, Konstantin.

Constantin Hesse: Hi, everyone. Can you hear me okay?

Speaker #2: Yes, yes.

Speaker #5: Perfect. All right, thanks. Congrats on the numbers, guys. One question from me, quickly. I want to challenge this point on the outlook a little bit further, because maybe—let's put it differently.

Franz Weinberger: Yes.

[Company Representative] (Sixt): Yes.

[Company Representative] (SIXT): Yes.

Constantin Hesse: Perfect. All right. Thanks. Congrats on the numbers, guys. One question from me quickly. I want to challenge this point on the outlook a little bit further. Let's put it differently. I know that you want to be conservative. I understand that. Maybe you can talk a little bit about how Q3 has been developing, because if I look at Lufthansa, IAG, TUI, every single one of them is talking about an improvement in booking momentum and actually really solid demand. I think even Lufthansa said very strong demand, very robust demand over the summer. And if I look at what Hertz and Avis were saying, I think Hertz was pointing to even an improvement in revenue per day in Q3, Q4, and Avis was also expecting about the continuation of a tight fleet, strong utilization.

Speaker #5: I know that you want to be conservative. I understand that. Maybe you can talk a little bit about how Q3 has been developing, because if I look at Lufthansa, IAG, TUI—every single one of them is talking about an improvement in booking momentum and actually really solid demand.

Speaker #5: I think even Lufthansa said very strong demand, very robust demand over the summer. And if I look at what Hertz and Avis were saying, I think Hertz was pointing to even an improvement in revenue per day in Q3, Q4, and Avis was also expecting about the continuation of a tight fleet, strong utilization.

Constantin Hesse: And if I look at what Hertz and Avis were saying, I think Hertz was pointing to even an improvement in revenue per day in Q3, Q4, and Avis was also expecting about the continuation of a tight fleet, strong utilization. So if I look at all of this, it clearly points to the direction that things actually seem to be pretty okay. So if you maybe give us a little bit of color into maybe how Q3 has been developing and why you still think that that range, why that lower end could still happen. Thank you.

Speaker #5: So, if I look at all of this, right, it clearly points in the direction that things actually seem to be pretty okay. So, maybe you could give us a little bit of color into how Q3 has been developing, and why you still think that lower end of the range could still happen.

Constantin Hesse: So if I look at all of this, it clearly points to the direction that things actually seem to be pretty okay. So if you maybe give us a little bit of color into maybe how Q3 has been developing and why you still think that that range, why that lower end could still happen. Thank you.

Speaker #5: Thank you.

Speaker #2: Well, obviously, being in the middle of August, I can't speak about the third quarter too much because, as mentioned, our industry has a very, very short booking window.

Franz Weinberger: Well, obviously being in the middle of August, I cannot speak about the Q3 too much because as mentioned, our industry has a very short booking window. Lufthansa, TUI, they also mentioned it is shorter, yes, but it is not comparably shorter than our booking window. Just to give you an idea, and we repeatedly say that if I today look at, let us say, today is 13 August. If I look at the September book, I would see typically something between 20% to 30% reservation, which is a bit less than we would have seen a year ago, but it is really short. Therefore, our view is really limited. Even for August, we are maybe at 70% or something.

Speaker #2: Lufthansa, TUI, they also mentioned it's shorter. Yes, but it's not comparably short to our booking window. So just to give you an idea—and I mean, we repeatedly say that—if I today look at, let's say, what today is, the 13th of August, if I look at the September book, I would see typically something between 20 to 30 percent reservation, which is a bit short, a bit less than we would have seen a year ago, but it's really, really, really short.

Speaker #2: And therefore, our view is really, really limited. Even for August, we are maybe at 70% or something. It's really a very, very short booking window, which leaves a lot of—or which is—we are used to that, and we know how to deal with it.

Franz Weinberger: It is really a very short booking window, which leaves a lot of We are used to that, and we know how to deal with it, but this has become even shorter. This is given the backdrop that we see, given the high volatility, given the many crisis that we see in our industry, that happened also in the H1, like the Iran war is going on and off and on and off. Why we stick to our guidance as of today, but I fully understand why you are looking at this the way you look at it. But from what we currently see, we are comfortable with the guidance that we have because the Q3 is the decisive one. Again, I want to mention it.

Speaker #2: But this has become even shorter. So this we see, given the high volatility, given the many, many crises that we see in our industry that happened also in the first half-year, like the Iran war is going on and off, and on and off.

Speaker #2: That is why we stick to our guidance as of today, but I fully understand why you're looking at it the way you look at it.

Speaker #2: But from what we currently see, we are comfortable with the guidance that we have. Because the third quarter is the decisive one—again, I want to mention it, yeah.

Speaker #5: Yeah, okay. No, fair enough. Maybe just a quick one, going back to the US very quickly as well. I mean, maybe just a little bit of color on the growth building blocks there, right?

Constantin Hesse: Yeah. Okay, fair enough. Maybe just a quick one, going back to the US very quickly as well. Maybe just a little bit of color on the growth building blocks there, right? Clearly the market is weak at the moment. Obviously, if we look at Hertz and Avis' numbers, they are down. You are up only about 6% in Q2. Maybe you can talk a little bit about Franz, the current market share momentum of Sixt in the US. Has that somehow slowed down? When would you potentially expect to see a recovery to double-digit growth in the US?

Speaker #5: I mean, clearly the market is weak at the moment. I mean, obviously, if we look at Hertz and Avis as a number of stairs down, you're up only about 6 percent in Q2.

Speaker #5: Maybe you can talk a little bit about the current market share momentum of Sixt in the US. Has that somehow slowed down? When would you potentially expect to see a recovery to double-digit growth in the US?

Speaker #2: Yeah, so can you repeat the question? Was it market share, or...?

Franz Weinberger: Yeah. Can you repeat the question? Was it market share or-

Speaker #5: Market share. So, I'm curious—I want to better understand the potential growth momentum in the US again, right? Because it seems to have obviously slowed down.

Constantin Hesse: Market share. I want to better understand the potential growth momentum in the US again, right? Because it seems to have obviously slowed down, obviously in part because of the macro, and on the other hand, because your base is also getting bigger, right? But I am curious if you could just comment a little bit on the market share gains of Sixt in the US market, and when we could potentially expect a return to double-digit growth.

Speaker #5: Obviously, in part because of the macro. And on the other hand, because your base is also getting bigger, right? But I'm curious if you could just comment a little bit on the market share gains of Sixt in the US market and when we could potentially expect a return to double-digit growth.

Speaker #2: Yeah, okay. So we only have figures for some of the airports that are sharing market data in the industry. We don't have a market share for the whole country like we get from Euromonitor each year at the beginning of the year for the year back.

Franz Weinberger: Yeah. Okay. We only have figures for some of airports that are sharing market data in the industry. We do not have a market share for the whole country like we get it from Euromonitor each year at the beginning of the year for the year back. But what we see is that with our growth that we currently have, we are still gaining market share because, for example, Avis is not growing at all and others are also having troubles. But it is simply not an easy, or maybe you can even call it a difficult environment currently in the US, and our strategy has not changed. We will always put profitable growth first.

Speaker #2: But what we see is that with our growth that we currently have, we are still gaining market share because, for example, Avis is not growing at all, and others are also having troubles.

Speaker #2: But it's simply not an easy, or maybe you can even call it a difficult, environment currently in the US. And our strategy has not changed.

Speaker #2: We have always put profitable growth first. And in an uncertain environment, like we currently have with low consumer sentiment, now starting a real growth offensive—like aiming for high double-digit growth—would most likely only be possible with lower prices and lower profitability. That's not where we want to be.

Franz Weinberger: And in an uncertain environment like we currently have with a low consumer sentiment, now starting a real growth offensive like high double-digit growth would most likely only be possible with lower prices, with lower profitability, and that is not where we want to be. I think the growth that we are seeing in the US, given the environment, is still a strong signal, but we always want to grow inside the demand and not outside the demand. And you know this is our strategy for many, many years in decades. We always want to have the fleet inside the demand because if you have it outside the demand, you have two options. One is lower price or accept a lower utilization. Both is not good for the unit economics, and we always put profitable growth first.

Speaker #2: I think the growth that we are seeing in the US, given the environment, is still a strong signal. But we always want to grow in line with the demand.

Speaker #2: And not outside the demand, because if—and you know, this is our strategy for many, many years and decades—we always want to have the fleet inside the demand, because if you have it outside the demand, you have two things, two options.

Speaker #2: One is lower price, or accept a lower utilization—both are not good for the unit economics. And we always put profitable growth first.

Speaker #5: No, fair enough. Thanks, Francis.

Speaker #2: And just to answer your question, I mean, will we see double-digit growth again? Yes, if the environment in the US changes, I'm sure we will see it.

Constantin Hesse: Oh, fair enough. Thanks, Franz.

Franz Weinberger: Just to answer your question, will we see double-digit growth again? Yes. If the environment in the US changes, I am sure we will see it, but in the current environment, it would just be not the right thing to do.

Speaker #2: But in the current environment, it would just not be the right thing to do.

Speaker #5: Sounds good. And just on the profitability point, just to clarify that specifically, because if I look at Avis's numbers, right, I think they had a 12% EBITDA margin in Q3. Hertz—I can't remember what Hertz had—but the point is, clearly, they are profitable in the US market.

Constantin Hesse: Sounds good. Just on the profitability point, just to clarify that specifically, because if I look at Avis' numbers, I think they had 12% EBITDA margin in Q3. Hertz, I cannot remember earlier what Hertz had, but point is, clearly they are profitable in the US market. So what kept you from delivering the margins was primarily this marketing initiative. Could you give us an idea of how much money you put down into that?

Speaker #5: So, what kept you from delivering the margins was primarily this marketing initiative. Could you give us an idea of how much money you put into that?

Speaker #2: Yeah, that was a single-digit million amount only in the second quarter—mid-single-digit. And again, I want to mention these two evaluation effects that I just mentioned.

Franz Weinberger: Yeah, that was a single-digit million amount, only in the second quarter. Mid-single digit. Again, I want to mention these two evaluation effects that I just mentioned, because we also wanted to take here a conservative approach, as we always do. You know that. But this also obviously had a big impact, in particular on the second quarter. If you look at the half year, I always want to be better, do not get me wrong. But if you look at this compared to the year before, then you only see a EUR 4.8 million miss.

Speaker #2: Because we also wanted to take a conservative approach here, as we always do—you know that. But this also obviously had a big impact, in particular on the second quarter.

Speaker #2: If you look at the half year, I always want to be better—don't get me wrong. But if you look at this compared to the year before, then you only see a €4.8 million miss.

Speaker #5: Understood. Thank you.

Constantin Hesse: Understood. Thank you.

Speaker #2: Thank you, Constantine. It looks like there are no further questions. Maybe give it a few seconds, but if that is the case, then we thank you very much.

Franz Weinberger: Thank you, Konstantin. It looks like there are no further questions. Maybe give it a few seconds, but if that is not the case, then we thank you very much. We will conclude our conference call for today. Thank you very much. Thank you. Goodbye.

Browse all earnings call transcripts

Q2 2026 Sixt SE Earnings Call

Request TrialDemo

Sixt

Earnings