CAR · Avis Budget Group, Inc.

Period Performance

Period Performance

In Q3 2025, Avis Budget Group reported revenues of $3.5 billion, up 1% year-over-year, driven primarily by a 1% increase in volume and a $37 million positive currency impact, partially offset by a 1% decline in revenue per day. Total expenses decreased 3%, led by a 16% drop in vehicle depreciation and lease charges (reflecting lower per-unit fleet costs and higher gains on vehicle sales) and a $109 million antitrust settlement distribution recorded within operating expenses. Net income attributable to Avis rose 51% to $359 million, and diluted EPS increased to $10.11 from $6.65. The effective tax rate improved to 23.9% from 27.7%.

Segment Dynamics

• Americas: Revenue declined 1% to $2.62 billion, reflecting a 3% decrease in revenue per day (ex-currency) partially offset by 3% volume growth. Adjusted EBITDA rose 4% to $398 million, benefiting from lower per-unit fleet costs and the settlement distribution, which reduced operating expenses to 42.9% of revenue (from 45.9%). Vehicle depreciation and lease charges fell to 19.3% of revenue (from 23.2%), while SG&A increased to 10.3% (from 9.0%) due to higher commissions.
• International: Revenue grew 7% to $898 million, driven by a 5% increase in revenue per day (ex-currency) and a $39 million currency tailwind, partially offset by a 2% volume decline. Adjusted EBITDA surged 37% to $190 million, supported by lower per-unit fleet costs and a $10 million currency benefit. Vehicle depreciation and lease charges declined to 19.0% of revenue (from 23.1%), while SG&A edged up to 14.2% (from 13.8%).

Forward View

Management highlighted ongoing strategic initiatives focused on technology, customer experience, and cost efficiency. Key trends include continued monitoring of interest rates, used car values, and geopolitical uncertainties. The company noted a reduction in vehicle purchase commitments by $2.1 billion since year-end, reflecting adjusted fleet levels. No specific financial guidance was provided, but the emphasis on fleet rotation and cost discipline suggests a focus on sustaining profitability amid revenue per day pressure.