Avis Budget revenue falls 2% to $3.436 billion in third quarter
Key Facts
Avis Budget Group reported revenue of about $3.436 billion in the third quarter of 2026, down 2% from the same period a year earlier, according to the company’s supplemental financial results. Net income fell to $199 million from $360 million, while adjusted earnings before interest, taxes, depreciation and amortization declined to $513 million from $559 million. The 8% drop in adjusted earnings was slower than the 45% decline in net income. The figures present a quarterly picture of lower revenue and profitability alongside improved vehicle utilization. In the third quarter of 2025, the company reported revenue of $3.519 billion, net income of $360 million and adjusted earnings before interest, taxes, depreciation and amortization of $559 million.
Activity declined during the quarter, with rental days down 3% year over year to 48.112 million, compared with 49.4 million in the same period of 2025. The average rental fleet also contracted 5% to 706,717 vehicles from 746,161. The fleet reduction coincided with fewer rental days, while revenue remained above $3 billion. In the second quarter of 2026, the company reported revenue of $3 billion, net income of $63 million and adjusted earnings before interest, taxes, depreciation and amortization of $286 million. The second-quarter figures provide context from the preceding quarter, while the year-over-year comparison for the third quarter remains the direct measure of the reported results.
Vehicle utilization rose to 74.0% from 72.0% a year earlier, an increase of 2 percentage points across the company. Meanwhile, monthly fleet cost per unit, excluding the impact of foreign exchange, increased 4% to $316 from $303. The company said revenue in the Americas segment fell 3%, alongside a 3% decline in rental days in the segment, while revenue per rental day was unchanged. It added that vehicle utilization in the Americas rose 2.8 percentage points year over year, despite being affected by vehicle recalls. The figures show divergent movements in operating metrics: utilization improved as rental days declined and fleet cost per unit rose.
Avis Budget said momentum improved during the quarter and that September revenue in the Americas rose at a mid-single-digit rate compared with the same month a year earlier. This followed a 3% decline in segment revenue for the full quarter, alongside an equivalent drop in rental days. The company said vehicle recalls weighed on the utilization rate in the Americas, despite a year-over-year improvement of 2.8 percentage points. Across the company, utilization rose to 74.0% from 72.0%, but monthly fleet cost per unit increased to $316 from $303. These indicators put the improvement in utilization in the context of a smaller fleet and fewer rental days.
The company kept its 2026 adjusted earnings before interest, taxes, depreciation and amortization outlook at about $850 million. It estimated fourth-quarter monthly fleet cost per unit at between $310 and $320. The estimates follow a cost of $316 in the third quarter, up 4% from $303 a year earlier, excluding the impact of foreign exchange. The company also said it delivered notice on November 2 to repay the remaining $350 million principal of its senior notes before year-end. The notes carry a 5.750% interest rate and mature in 2027.
Avis Budget scheduled a call to discuss its third-quarter results for November 4, 2026, at 8:30 a.m. Eastern time. CAR shares closed at $111.52 on November 2, before the announced results date, according to EL7 data. That price is from a session before the call and does not measure the stock’s subsequent movement. The call provides a later opportunity to discuss results that included year-over-year declines in revenue, net income and adjusted earnings. It follows the company’s announcement of its full-year outlook and its estimate for fourth-quarter fleet costs.