CAR · Avis Budget Group, Inc.

Avis Budget Group's Q2 2026 results reflect a company navigating softer revenue trends through operational discipline, yielding improved profitability. Revenue of $2,998 million slipped 1% year-over-year, driven by a 2% decline in rental days, partially offset by a 1% increase in total revenue per day to $68.29. However, Adjusted EBITDA grew 3% to $286 million, outpacing revenue, as management aggressively managed fleet costs and utilization. Total Company vehicle utilization hit a second-quarter record of 72.6%, up 190 basis points, with Americas reaching 73.2% (up 250 bps). This utilization gain, combined with a 4% reduction in per-unit fleet costs (excluding FX) to $290 per month, bolstered margins despite top-line pressure. Segment performance was mixed: Americas Adjusted EBITDA surged 8% to $237 million, benefiting from strong cost control and utilization, while International saw an 11% decline to $73 million, reflecting softer demand and currency headwinds. Notably, the company maintained liquidity of approximately $1.0 billion and an additional $1.9 billion in fleet funding capacity, providing financial flexibility. During the quarter, Avis refinanced its $2 billion revolving credit facility (extending maturity to 2031) and issued $300 million of add-on senior notes, using proceeds to repay near-term debt. Management commentary emphasized a shift in operational approach, quickly resizing fleet in response to booking trends to protect returns. CEO Brian Choi noted that Adjusted EBITDA came in line with initial expectations, highlighting the company's ability to adapt. No forward guidance was provided, consistent with the practice of many companies. Overall, the quarter underscores Avis Budget's structural improvements in fleet management and utilization, which are partially insulating profitability from demand fluctuations.