Hertz Global Holdings, Inc. (HTZ): History, Ownership, Mission, How It Works & Makes Money

How does Hertz Global Holdings, Inc., a century-old giant reporting total revenues of $9.4 billion for the full year 2023, maintain its significant footprint in the highly competitive global vehicle rental industry? Navigating market fluctuations and evolving consumer demands, particularly with its ambitious electric vehicle initiatives, the company presents a compelling case study in operational strategy and revenue generation. Are you prepared to look under the hood and understand the core mechanics, historical journey, and financial engine driving this iconic brand forward in today's dynamic transportation landscape?

Hertz Global Holdings, Inc. (HTZ) History

Hertz's Founding Timeline

Year established

The company traces its roots back to 1918.

Original location

It began in Chicago, Illinois.

Founding team members

Walter L. Jacobs started the car rental operation at the age of 22.

Initial capital/funding

Jacobs began with a modest fleet of a dozen Ford Model T cars. He expanded rapidly, and by 1923, his business generated annual revenues of around $1 million.

Hertz's Evolution Milestones

The journey from a small Chicago operation to a global giant involved several pivotal moments. Understanding the company's past helps contextualize its present market position and the thinking behind Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who’s Buying and Why?

Hertz's Transformative Moments

Multiple Ownership Changes

Hertz has navigated numerous ownership structures, from entrepreneurs to large corporations like GM and Ford, to private equity, and back to public markets. Each transition brought shifts in strategy and capital structure, influencing its operational focus and growth trajectory. This constant evolution shaped its corporate DNA.

The 2020 Bankruptcy and 2021 Restructuring

The Chapter 11 filing was a defining crisis, driven by the unprecedented drop in travel demand. However, the subsequent emergence in 2021, backed by significant new capital (over $5.9 billion), allowed Hertz to reset its balance sheet, shed debt (reducing corporate debt by nearly 80%), and invest in technology and initially, a large electric vehicle fleet. This represented a major financial and strategic reset.

The Electric Vehicle Gamble and Pivot

Post-bankruptcy, Hertz made headlines with massive orders for EVs, aiming to differentiate itself and capture a growing market segment. This bold move was transformative. Yet, by early 2024, the company reversed course significantly, deciding to sell a large portion of its EV fleet due to unforeseen operational costs and depreciation issues. This pivot highlights the complexities of large-scale fleet transitions and risk management in a rapidly changing automotive landscape, significantly impacting financial results through 2024.

Hertz Global Holdings, Inc. (HTZ) Ownership Structure

Hertz Global Holdings, Inc. operates as a publicly traded entity, with its ownership primarily concentrated among large institutional investors following its emergence from bankruptcy restructuring.

Hertz Global Holdings, Inc.'s Current Status

As of the end of 2024, Hertz Global Holdings, Inc. (HTZ) is a publicly listed company traded on the Nasdaq stock exchange. This status means its shares are available for purchase by the general public, although institutional investors hold the majority stake.

Hertz Global Holdings, Inc.'s Ownership Breakdown

The distribution of ownership reflects significant stakes held by investment firms that played a key role in its financial recovery, alongside other institutional and individual investors. Understanding this breakdown is crucial for anyone considering the stock; for deeper insights, you might want to review Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who’s Buying and Why?.

Hertz Global Holdings, Inc.'s Leadership

The company's strategic direction is guided by its executive leadership team and Board of Directors as of the end of 2024. Key figures steering the organization include:

• Gil West - Chief Executive Officer (Appointed March 2024)
• Alexandra Brooks - Executive Vice President and Chief Financial Officer
• Thomas Wagner - Chairman of the Board of Directors (Co-Founder of Knighthead Capital Management)

This leadership team oversees operations, financial management, and long-term strategy, navigating the complexities of the global vehicle rental market.

Hertz Global Holdings, Inc. (HTZ) Mission and Values

Hertz Global Holdings articulates its core purpose through formal statements guiding its global operations and strategic choices. These principles shape the company culture and define its aspirations beyond pure financial returns.

Hertz's Core Purpose

Understanding the driving forces behind Hertz involves looking at its stated objectives.

Official mission statement

The company's mission is straightforward: To be the most customer-focused, cost-efficient vehicle rental company in every market we serve. This dual focus highlights the balance Hertz strives for – exceptional customer experiences coupled with operational leanness, crucial for profitability in the competitive rental market.

Vision statement

While a single, distinct vision statement isn't always prominently featured in recent communications, Hertz's strategic direction points towards a future centered on providing comprehensive mobility solutions. This includes significant investments in electric vehicles and digital enhancements, signaling an evolution beyond traditional car rental.

Company slogan

Their current marketing often uses the energetic call to action: Let's Go! This reflects a forward-looking approach aimed at enabling customer journeys and experiences.

These guiding statements are foundational. They influence everything from daily operations to major capital allocation decisions, like the significant fleet electrification efforts seen recently. You can delve deeper into the Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ). The company also emphasizes core values, often summarized by the acronym PRIDE:

• Professionalism
• Respect
• Integrity
• Diversity
• Excellence

Adherence to these values is presented as key to building trust with customers, employees, and investors, underpinning long-term sustainable growth.

Hertz Global Holdings, Inc. (HTZ) How It Works

The company primarily generates revenue by renting vehicles to customers through a global network of airport and off-airport locations under its various brands. It operates by managing a large fleet, taking reservations, maintaining locations, and handling vehicle logistics including maintenance and eventual resale.

Hertz Global Holdings, Inc.'s Product/Service Portfolio

Hertz Global Holdings, Inc.'s Operational Framework

The company's operations revolve around efficient fleet management, encompassing vehicle acquisition, maintenance scheduling, damage assessment, and timely disposal through various channels, including direct sales and auctions. As of year-end 2023, the global fleet comprised several hundred thousand vehicles, though the company initiated plans in early 2024 to adjust its electric vehicle holdings. Reservations are processed through a multi-channel system including its websites, mobile apps, call centers, and partnerships with online travel agencies and corporate travel programs. Pricing is dynamic, influenced by demand, seasonality, location, and vehicle type. A key operational aspect is managing thousands of rental locations globally, ensuring staffing, vehicle availability, and customer service standards align with its Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ). The company reported total revenues of approximately $9.4 billion for the full fiscal year 2023, reflecting the scale of these integrated operations.

Hertz Global Holdings, Inc.'s Strategic Advantages

Several factors contribute to the company's market position:

• Strong Brand Portfolio: Ownership of globally recognized brands including Hertz, Dollar, and Thrifty allows targeting of different customer segments from premium to value-conscious.
• Extensive Global Network: A vast network of rental locations, particularly strong penetration at major airports worldwide, provides significant customer reach and convenience.
• Large & Diverse Fleet: Access to a substantial fleet offers vehicle availability and choice, catering to diverse customer needs, despite adjustments like the planned EV fleet reduction in 2024.
• Established Loyalty Program: Hertz Gold Plus Rewards fosters customer retention and repeat business, particularly among frequent travelers.
• Corporate Relationships: Long-standing agreements with corporations provide a stable base of business travel revenue.

Hertz Global Holdings, Inc. (HTZ) How It Makes Money

Hertz Global Holdings generates revenue primarily through the rental of vehicles globally, including cars, crossovers, and trucks, supplemented by ancillary services like insurance options and fuel purchase plans.

Hertz Global Holdings, Inc. (HTZ) Revenue Breakdown

Based on Fiscal Year 2023 results, reflecting the operational landscape leading into 2024:

Hertz Global Holdings, Inc. (HTZ) Business Economics

The company's profitability hinges on balancing several key economic factors. Fleet utilization, meaning the percentage of time vehicles are rented out, is crucial; in 2023, utilization stood at 78% in the Americas and 76% internationally. Pricing, measured by Revenue Per Transaction Day (RPD), directly impacts top-line growth; Americas RPD was $56.81 and International RPD was $53.89 in Fiscal Year 2023. A major component is fleet cost, particularly vehicle depreciation, which saw significant increases in late 2023, partly due to adjustments in the valuation of electric vehicles within the fleet. Operating expenses, including vehicle maintenance, staffing at rental locations, and interest expenses on debt used to finance the fleet, also significantly influence margins. The overall economic health relies heavily on travel demand (both leisure and corporate) and the dynamics of the used car market, which affects residual values upon fleet disposal. Strategic decisions around fleet mix and technology adoption are central to managing these economics, aligning with the broader Mission Statement, Vision, & Core Values of Hertz Global Holdings, Inc. (HTZ).

Hertz Global Holdings, Inc. (HTZ) Financial Performance

Reflecting the challenging operating environment in 2023 leading into 2024, Hertz reported total revenues of $9.4 billion for the full fiscal year 2023. While revenues showed resilience compared to pre-pandemic levels, profitability faced pressure. Adjusted Corporate EBITDA for FY2023 was $1.9 billion, a marked decrease from the prior year, primarily driven by higher vehicle depreciation costs, particularly in the latter half of the year, and normalized pricing from pandemic highs. Net income attributable to Hertz for FY2023 was $616 million, down substantially from $2.1 billion in FY2022. Key performance indicators showed mixed results:

• Total Revenue: $9.4 billion (FY2023)
• Adjusted Corporate EBITDA: $1.9 billion (FY2023)
• Net Income: $616 million (FY2023)
• Average Rentable Vehicles: Increased year-over-year in 2023.
• Direct Operating Expenses & SG&A: Managed closely but reflect inflationary pressures and investments.

The financial performance indicates a normalization trend post-pandemic coupled with specific headwinds like increased fleet costs impacting margins as of the end of 2023.

Hertz Global Holdings, Inc. (HTZ) Market Position & Future Outlook

Hertz Global Holdings operates as a major player in the global vehicle rental industry, facing a dynamic market influenced by evolving consumer preferences and economic conditions as of early 2025. Its future outlook hinges on successfully navigating operational challenges, particularly fleet management, while capitalizing on recovering travel demand and strategic digital initiatives.

Competitive Landscape

The vehicle rental market remains highly competitive, dominated by a few large corporations.

Opportunities & Challenges

Navigating the path forward involves balancing growth opportunities with significant operational and financial risks.

Industry Position

Hertz maintains a significant position as one of the top three players in the critical US car rental market and globally, benefiting from decades of brand building. However, recent strategic shifts, notably the challenges encountered with its large-scale electric vehicle fleet adoption starting in 2022-2023 and the subsequent decision in early 2024 to sell off a significant portion (around 20,000 EVs), have impacted its financial performance and operational focus entering 2025. The company is concentrating on optimizing its core operations and fleet management while addressing its debt structure. Understanding investor sentiment during these transitions is crucial; further insights can be found by Exploring Hertz Global Holdings, Inc. (HTZ) Investor Profile: Who’s Buying and Why?. Key strategic priorities include enhancing profitability and adapting its fleet strategy to prevailing market conditions and residual value risks.

• Focus Areas for 2025:
• Fleet optimization and right-sizing
• Debt management and improving credit metrics
• Enhancing digital customer journey
• Driving operational cost efficiencies