CAR US Russell 1000 Earnings call

Avis Budget Group (CAR) · Q2 2026 results

Share price: $127.32 · 2026-11-11

Avis Budget Group provides mobility solutions including car and truck rentals and car sharing through its brands Avis, Budget, and Zipcar. The company operates in approximately 180 countries, serving both individual and commercial customers in the Americas, Europe, and other global regions. Source: 10-K annual report (2026-02-19)

Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026

Net income turned to a profit from a loss last quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

Turned profit

Net income vs Q1 2026

Outlook given

Net income 35.0M vs -283.0M

Revenue +21.2%

Why Net income increased because the company prioritized profitability over rental days, benefited from lower per unit depreciation of $301, and received a $650 million cash settlement from Pentwater.

2 · How management spoke

Restrained

Less upbeat than 78% of company calls

Answers to analysts: cautious, in line with the script.

Similar to last call.

3 · What stood out

Avis and Pentwater reached a settlement agreement regarding short-swing profits where Pentwater agreed to pay Avis $650 million in cash.

Valuation

Reverse DCF. Free cash flow from the last full fiscal year, grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

Valuation unavailable: no OCF/capex (bank, utility, or SEC gap).

Current price

$127.32

close of 2026-11-11

Revenue growth, 3 years

−1.0% a year

compound annual rate (CAGR)

Official channels

The company's own website and social media accounts.

Website
X

Read between the lines

Guidance

The company reiterated its full year guidance of $850 million to $1 billion in adjusted EBITDA.
Figure

Revenue declined because rental days fell by 2.1% due to an intentional decision to operate with a fleet that was 5.4% smaller year-over-year.

Source quote
“The revenue decline was driven primarily by a 2.1% decline in rental days, which reflected our intentional decision to operate with a fleet that was 5.4% smaller year-over-year.”
Key theme

The company expects a 100 to 125 bps spread depending on the tranche.

Source quote
“It will depend a bit on the tranche, but 100, 125 bps is probably our expectation.”
Figure

The Americas fleet finished the quarter down 5% year-over-year, marking the lowest second quarter fleet size since the COVID environment of 2Q '21.

Source quote
“Instead, our Americas fleet finished the quarter down 5% year-over-year, the lowest second quarter fleet size since the COVID environment of 2Q '21.”
Figure

Avis and Pentwater reached a settlement agreement regarding short-swing profits where Pentwater agreed to pay Avis $650 million in cash.

Source quote
“We are pleased to report that Avis and Pentwater have reached a settlement agreement related to short-swing profits under which Pentwater agreed to pay Avis $650 million in cash.”

4 more

Key theme

Adjusted EBITDA grew year-over-year and reached its highest second quarter margin in three years despite a softer-than-expected demand environment and fewer rental days.

Source quote
“Despite a softer-than-expected demand environment and fewer rental days, adjusted EBITDA grew year-over-year, and we delivered our highest second quarter adjusted EBITDA margin in the last 3 years.”
Figure

The company achieved its first two consecutive quarters of positive global RPD growth in 12 quarters and reached its first consecutive quarters of growth in the Americas in 16 quarters.

Source quote
“This marks the first time in 12 quarters that the company has delivered 2 consecutive quarters of positive global RPD growth, and the inflection is even more pronounced in the Americas, where we had not achieved consecutive quarterly RPD growth in 16 quarters.”
Figure

Year-to-date, recalls have represented more than $50 million of directly attributable costs before considering lost profit.
Figure

The net corporate leverage ratio decreased by 100 basis points to 7.4x since year-end in 2025.

Source quote
“Our net corporate leverage ratio of 7.4x is down 100 basis points since year-end in 2025.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Restrained (was cautious)

Answers to analysts Cautious (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“But the data changed, against the backdrop of broader consumer uncertainty, higher travel costs and geopolitical volatility, year-over-year TSA check-ins decelerated from flat in April to negative 70 basis points...”

“Revenues, excluding exchange rate effects, declined 2.5% year-over-year and adjusted EBITDA declined 11% year-over-year, further pressured by higher variable costs associated with our mix shift.”

“We also achieved record second quarter utilization globally with both the Americas and International improving sequentially and year-over-year.”

Full figures

USD · ROIC.AI fundamentals (NASDAQ:CAR, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	3.07B	2.53B	+21.2%	3.04B	+0.9%
Gross profit	2.18B	—		—
Operating income	212.0M	-340.0M	Turned profit	15.0M	+1313.3%
Net income	35.0M	-283.0M	Turned profit	4.0M	+775.0%
EPS	0.99	-8.01	Turned profit	0.10	+891.5%
P/E	12-mo loss	12-mo loss	—	12-mo loss	—

Topics

Most discussed now

Such risks and assumptions, uncertainties and other factors are identified in Avis Budget's earnings release and other periodic filings…
The result was a fleet position that looks different from what Avis Budget would typically expect in the second quarter.
Given that Avis Budget is in its peak demand period, it will not have the same opportunity to generate gains from...
With the fleet remaining tight, Avis Budget expects to continue prioritizing longer duration, higher-value transactions over shorter…
Even though the headline RPD number is higher for these shorter duration 1-day rentals, given the fact that Avis Budget is...

Faded since Q1 2026

Fading Pentwater has acknowledged that its sale of Avis stock, at least in part, was violative of the SEC Section 16...
Fading Avis Budget also saw improved ancillary performance, which grew 1.9% year-over-year and continue to support a shift towards higher quality…
Fading Avis Budget is also seeing strong demand in key markets, including World Cup host cities where both rental days and pricing...
Fading If a 35,000 mile car would compete squarely with a 3-year lease return vehicle, and that's not where Avis Budget wants...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-03 Results of operations · SEC 8-K
2026-11-02 Other events · SEC 8-K
2026-10-06 Other events · SEC 8-K
Avis Budget Group, Inc. received a $650,000,000 cash settlement on October 5, 2026, and plans to use a portion to repay $350 million of its 5.750% Senior Notes due 2027.
2026-09-24 Material agreement; New financial obligation · SEC 8-K
The subsidiary ABRCF issued $650 million of asset-backed securities with a five-year maturity on September 21, 2026, consisting of Class A, B, C, D, and R notes.
2026-09-01 Director or officer change · SEC 8-K
Ravi Simhambhatla, Executive Vice President and Chief Digital & Innovation Officer, will leave Avis Budget Group, Inc. on September 30, 2026, after serving in the role for four years.
2026-07-28 Results of operations · SEC 8-K
The filing provides notice that Item 2.02 and Exhibit 99.1 are not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.
2026-07-01 Material agreement; New financial obligation · SEC 8-K
Avis Budget Group entered into an agreement to refinance its $2 billion revolving loan facility with a new $2 billion facility maturing in 2031 and established a new $200 million revolving loan facility.
2026-06-22 Other events · SEC 8-K
Avis Budget Group, Inc. entered into a Settlement and Release Agreement with Pentwater Capital Management LP for a settlement amount of $650,000,000 in cash.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

by year-end

resolution of the settlement matter with Pentwater

Source quote
“The settlement remains subject to final court approval, but we expect this matter to be resolved by year-end.”
by the end of 2026

attain a growth rate of at least a full turn of adjusted EBITDA

Source quote
“verage by at least a full turn of adjusted EBITDA by the end of 2026.”
by year-end

receive the funds from the Pentwater short-swing profit settlement

Source quote
“we expect to receive the funds by year-end and plan to deploy a portion of the proceeds towards retiring by year-end the remaining $350 million senior notes due in 2027.”
During the first half of 2026

exceeded adjusted EBITDA plan

Source quote
“During the first half of 2026, we exceeded our adjusted EBITDA plan, and we entered Q3 our peak season demand with strong operational fundamentals.”
full year

adjusted EBITDA guidance of $850 million to $1 billion

Source quote
“As a result, we are reiterating our full year guidance of $850 million to $1 billion in adjusted EBITDA.”