Depreciation per unit (DPU) was $251, well below the sub-$300 North Star target, exceeding it by 16%, driven by fleet rotation and strong residual values.
Direct operating expenses per transaction day declined 3% year-over-year to about $36, reflecting disciplined cost control and operational efficiency.
Hertz reported $2.2 billion in revenue for Q2 2025, with adjusted corporate EBITDA turning positive at $1 million, a $460 million improvement year-over-year.
Liquidity stood at $1.4 billion at the end of June, supported by delayed Wells Fargo litigation resolution and efficient balance sheet management.
Vehicle utilization improved to 83%, a 300 basis point increase year-over-year, despite a 6% reduction in fleet size.
Non-GAAP earnings per share increased more than 40% year-over-year with solid revenue growth in both segments.
Non-GAAP earnings per share of $1.11 was delivered in the second quarter, representing 41% year-over-year EPS growth ahead of internal expectations.
Non-GAAP operating margin expanded 200 basis points year-over-year to 11%, the highest on record for the second quarter.
Profitability improvements were driven by volume growth, profit transformation efforts, and KII synergies.
Residential Building Products second quarter revenue increased more than 5% year-over-year, with new construction channel up more than 4% and remodel-retrofit sales up over 7%.
Residential Building Products segment operating profit grew 20% year-over-year, and operating margin expanded 190 basis points to 15.7%.
Capital spending increased with $295 million toward the Blue Ridge rebuild; free cash flow was lower year-to-date due to higher CapEx and lower net earnings.
Earnings per share decreased by 10% year-over-year but grew by 29% quarter-over-quarter.
Expenses increased by 2% year-over-year, including network disruption costs, inflation, and higher depreciation, partly offset by lower fuel prices.
Fuel costs decreased by $32 million year-over-year due to lower prices despite higher consumption from reroutes.
Labor and fringe expenses rose due to inflation and trucking business headcount increases, while rail headcount decreased year-over-year and sequentially.
Operating income increased $242 million from Q1, with margins improving by 550 basis points, ahead of normal seasonality.
Reported operating margin declined by 320 basis points year-over-year but increased by 550 basis points sequentially.
Total revenue was $3.6 billion for the quarter, down 3% year-over-year, largely due to lower coal and fuel prices.
Total volume was flat compared to last year, with a 4% sequential increase driven by merchandise and coal shipments.
Dafinchi