Thu, May 8, 1:35 PM (5 days ago)
**Avis Budget Group, Inc. (CAR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2.43 billion, down 5% YoY due to decreased revenue per day and volume. - **Net Loss:** $504 million, a significant increase from $113 million YoY, primarily due to increased fleet costs. - **Adjusted EBITDA:** Loss of $93 million, down from a gain of $12 million YoY. - **Profit Margins:** Operating expenses increased to 55.7% of revenue, vehicle depreciation and lease charges rose to 43.4% of revenue. - **Cash Flow:** Positive operating cash flow of $619 million, but negative investing cash flow of $715 million. **Key Metrics & Trends:** - **Rental Days & Revenue per Day:** Decreased volume and revenue per day drove the revenue decline. - **Vehicle Utilization:** Affected by decreased fleet levels and increased depreciation rates. - **Fleet Costs:** Increased due to accelerated fleet rotations and higher depreciation rates. - **Interest Rates & Inflation:** Impacted fleet costs and overall financial performance. **Uncertainties & Future Operations:** - **Economic Factors:** Susceptible to interest rates, inflation, and global economic conditions. - **Fleet Strategy:** Accelerated fleet rotations to decrease fleet age and improve competitiveness. - **Liquidity:** Access to $1.1 billion in total liquidity, but faces risks from economic downturns and market disruptions. - **Debt:** Total indebtedness of approximately $23.1 billion, with compliance with debt covenants. **Segment Performance:** - **Americas:** Revenue down 4%, Adjusted EBITDA loss of $67 million. - **International:** Revenue down 6%, Adjusted EBITDA loss of $3 million. **Notable Changes:** - **Stock Repurchase Program:** $757 million remaining for repurchases. - **Debt Amendments:** Avis Budget Rental Car Funding (AESOP) LLC amended and extended asset-backed variable-funding financing facilities, increasing capacity by $640 million. **Risk Factors:** - **Economic Downturns:** Potential impact on travel demand and used vehicle market. - **Geopolitical Events:** Ongoing military conflicts and sanctions affecting operations. - **Legal Proceedings:** Various lawsuits and regulatory inquiries. **Conclusion:** Avis Budget Group faced significant challenges in Q1 2025, with increased fleet costs and economic headwinds driving a substantial net loss. The company is focusing on strategic initiatives to improve fleet efficiency and competitiveness while navigating a complex economic and regulatory environment.