Avis Budget Group (CAR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $3.0 billion, down 1% year-over-year, with net income of $35 million, a significant increase from $4 million in Q2 2025, driven by lower fleet costs and higher revenue per day, despite lower volume.

• Adjusted EBITDA for Q2 2026 was $286 million, up 3% year-over-year; for the six-month period, Adjusted EBITDA was $173 million, down $11 million year-over-year.

• Vehicle utilization reached a record 72.6% for the quarter, up 1.9 points year-over-year, with Americas utilization at 73.2%.

• The autonomous vehicle partnership with Waymo launched in Dallas, completing thousands of trips in its first month.

• Settlement with Pentwater for $650 million is pending court approval and expected to support deleveraging.

Financial highlights

• Q2 2026 diluted EPS was $0.98, up from $0.10 in Q2 2025; six-month diluted loss per share was $7.01, improved from $14.24 in the prior year.

• Per-unit fleet costs decreased 4% year-over-year to $290 per month, excluding FX effects.

• Cash and cash equivalents at quarter-end were $558 million, with liquidity of approximately $1.0 billion and $1.9 billion in fleet funding capacity.

• Adjusted Free Cash Flow for the first half of 2026 was $161 million, up from negative $475 million in the prior year period.

• Operating expenses increased to 50.9% of revenue in Q2 2026, while vehicle depreciation and lease charges fell to 19.4% of revenue.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA is projected between $850 million and $1 billion.

• Per-unit fleet costs per month are expected to range from $315 to $325 for FY 2026.

• Management remains focused on operational efficiency, analytics, innovation, and adaptability to changing demand environments.

• The company expects further restructuring expenses of approximately $9 million in 2026 related to its global rightsizing initiative.

• Guidance excludes the impact of future currency exchange rate changes.