Hertz Global Holdings, Inc. reported results for its first quarter 2025, showing revenue was down year-over-year driven primarily by reduced fleet capacity.

The company continues to manage its fleet prudently, which was down 8% year-over-year in the first quarter. Given macro demand uncertainties, Hertz stated it is intentionally running a tighter fleet year-over-year while capitalizing on the strong residual value environment to accelerate the rotation of its remaining older vehicles.

The focus is to offset some of the fleet reduction through higher utilization and “sweating the assets” with more days. RPU declined 3% year-over-year due to the timing of the Easter holiday and Leap Year, as well as a margin-accretive shift in fleet mix to better align with customer booking behavior.

Utilization was up 240 basis points year-over-year and would have been stronger if not for temporary headwinds from accelerated in-fleeting.

“Our ‘Back-to-Basics Roadmap’ is working,” said Gil West, chief executive officer of Hertz. “Disciplined fleet management, revenue optimization, and rigorous cost control are driving meaningful results. In a dynamic environment shaped by tariffs and economic uncertainty, capitalizing on our fleet as our most dominant economic lever keeps us agile today and positions us to deliver long-term, sustainable value.

“Just a year ago, we were managing through an aging fleet and pressure on residual values. Today, thanks to swift and disciplined action, we’ve rotated into a newer, more efficient fleet that’s resilient, cost-effective, and aligned with a rising residual environment. As an asset management business that buys, rents, and sells vehicles, disciplined execution across all three areas is key to unlocking stronger returns and strengthening our financial foundation.”