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Avis Budget Group Stock Declines 21.8% Since Reporting Q4 Loss
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Key Takeaways
CAR posted Q4 adjusted loss of $6.53 per share as revenues fell 1.7% to $2.66B.
Americas revenues dropped 3.6%, while International revenues rose 5.2% year over year.
CAR 2026 EBITDA is projected to be in the range of $800M-$1B and fleet costs between $320 and $330 per unit.
Avis Budget Group (CAR - Free Report) reported unimpressive fourth-quarter 2025 results, with both earnings and revenues significantly missing the Zacks Consensus Estimate.
The stock has plummeted 21.8% since the release of results on Feb. 18, reflecting the heavy loss incurred during the reported quarter.
The company announced fourth-quarter adjusted loss of $6.53 per share, which was 2151.7% and 2739.1% wider than the consensus estimate and the year-ago reported figure, respectively. Revenues of $2.66 billion missed the consensus mark by 3% and declined 1.7% from the year-ago quarter.
Weak demand for rental cars with lower rental days, especially in the United States, resulted in reduced gains on vehicles sold and a lower valuation mark on CAR’s retained fleet during the fourth quarter. Additionally, the declining rental index price per vehicle metric, especially in November 2025, hurt the company the most, leading to the steep bottom-line dip.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Revenues from the Americas amounted to $2.04 billion, reflecting a 3.6% decline from the year-ago quarter’s reported figure. The metric lagged our estimate of $2.13 billion.
International revenues were $624 million, increasing 5.2% year over year and beating our estimation of $612.1 million.
CAR’s Profitability
Adjusted EBITDA was $5 million against a loss of $101 million in the year-ago quarter. The Americas segment reported adjusted EBITDA of $1 million. Internationally, adjusted EBITDA was $21 million.
Key Balance Sheet & Cash Flow Figures
Avis Budget exited the fourth quarter of 2025 with cash and cash equivalents of $519 million compared with $564 million at the end of the third quarter of 2025. Corporate debt was $6 billion, flat sequentially.
CAR generated $437 million in net cash from operating activities during the quarter. The adjusted free cash flow utilized was $119 million. Capital expenditure was $82 million.
Q1 and 2026 Guidance
CAR expects fleet costs per month to be $400 per unit for the first quarter of 2026 and between $320 and $330 per unit for full-year 2026. The company guided EBITDA to be between $800 million and $1 billion for 2026.
CAR currently carries a Zacks Rank #5 (Strong Sell).
Trane Technologies (TT - Free Report) reported impressive fourth-quarter 2025 results. TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter.
TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter.
BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.
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Avis Budget Group Stock Declines 21.8% Since Reporting Q4 Loss
Key Takeaways
Avis Budget Group (CAR - Free Report) reported unimpressive fourth-quarter 2025 results, with both earnings and revenues significantly missing the Zacks Consensus Estimate.
The stock has plummeted 21.8% since the release of results on Feb. 18, reflecting the heavy loss incurred during the reported quarter.
The company announced fourth-quarter adjusted loss of $6.53 per share, which was 2151.7% and 2739.1% wider than the consensus estimate and the year-ago reported figure, respectively. Revenues of $2.66 billion missed the consensus mark by 3% and declined 1.7% from the year-ago quarter.
Weak demand for rental cars with lower rental days, especially in the United States, resulted in reduced gains on vehicles sold and a lower valuation mark on CAR’s retained fleet during the fourth quarter. Additionally, the declining rental index price per vehicle metric, especially in November 2025, hurt the company the most, leading to the steep bottom-line dip.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Avis Budget’s Segmental Revenues
Revenues from the Americas amounted to $2.04 billion, reflecting a 3.6% decline from the year-ago quarter’s reported figure. The metric lagged our estimate of $2.13 billion.
International revenues were $624 million, increasing 5.2% year over year and beating our estimation of $612.1 million.
CAR’s Profitability
Adjusted EBITDA was $5 million against a loss of $101 million in the year-ago quarter. The Americas segment reported adjusted EBITDA of $1 million. Internationally, adjusted EBITDA was $21 million.
Key Balance Sheet & Cash Flow Figures
Avis Budget exited the fourth quarter of 2025 with cash and cash equivalents of $519 million compared with $564 million at the end of the third quarter of 2025. Corporate debt was $6 billion, flat sequentially.
CAR generated $437 million in net cash from operating activities during the quarter. The adjusted free cash flow utilized was $119 million. Capital expenditure was $82 million.
Q1 and 2026 Guidance
CAR expects fleet costs per month to be $400 per unit for the first quarter of 2026 and between $320 and $330 per unit for full-year 2026. The company guided EBITDA to be between $800 million and $1 billion for 2026.
CAR currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Trane Technologies (TT - Free Report) reported impressive fourth-quarter 2025 results. TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter.
TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.
Booz Allen Hamilton (BAH - Free Report) registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter.
BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.