Avis Budget shares rise 9.7% despite Q3 profit miss

Avis Budget Group (CAR) said on Nov. 3 that its diluted earnings per share for the third quarter of 2026 were $5.15, missing the $8.63 consensus estimate.

Shares rose 9.7% in regular trading as of 9:34 a.m. ET on Nov. 4, from a regular-session close of $109.34.

Revenue was $3.44 billion, in line with the $3.45 billion consensus estimate, and down 2% from a year earlier.

Here's how the company did:

• Diluted EPS: $5.15 vs. $10.11 a year earlier, $8.63 expected
• Revenue: $3.44 billion vs. $3.52 billion a year earlier, $3.45 billion expected
• Adjusted EBITDA: $513 million vs. $559 million a year earlier
• Net income attributable to Avis Budget Group: $183 million vs. $359 million a year earlier

Adjusted EBITDA, a non-GAAP measure, is earnings before interest, taxes, depreciation and amortization with certain other items excluded. It fell 8% to $513 million from $559 million a year earlier, according to the company's press release.

For the nine months, the company reported a net loss attributable to Avis Budget Group of $65 million, narrower than the $142 million loss a year earlier.

Fleet and pricing

Total company vehicle utilization was 74.0%, up 2 points from a year earlier. Americas utilization was 74.1%, up 2.8 points.

“The third quarter demonstrated continued progress in how we manage our fleet,” said CEO Brian Choi. “We are building on the improvements we've made in fleet management and field operations with the objective of improving transaction economics, strengthening profitability, and delivering more consistent financial performance over time.”

Total company revenue per day, excluding exchange rate effects, was $71.54, compared with $71.22 a year earlier. The company said this was the third consecutive quarter of year-over-year growth.

Per-unit fleet costs were $316 per month, excluding exchange rate effects, up 4% from $303 a year earlier. The company said the increase was within its expectations.

In the Americas, revenue was $2.55 billion, down 3% from $2.62 billion, and adjusted EBITDA was $365 million, down 8%. International revenue was $884 million, down 2%, and adjusted EBITDA was $180 million, down 5%.

Costs and cash

Restructuring and other related charges were $5 million, down from $13 million a year earlier. Transaction-related costs, net, were $2 million.

Net income has swung sharply in recent quarters. According to its SEC filings, it moved from a loss of $283.0 million in the first quarter of 2026 to a profit of $35.0 million in the second quarter.

For the nine months ended Sept. 30, net cash provided by operating activities was $2.26 billion. Adjusted free cash flow, a non-GAAP measure of the cash generated that is available for debt repayment, share repurchases and investment, was $198 million.

Liquidity and debt

The company ended the quarter with liquidity of $866 million and an additional $2.5 billion of fleet funding capacity.

The company said it received $650 million in cash on Oct. 5 under the previously reported settlement with Pentwater Capital Management LP and certain affiliated persons. It will be recognized in the fourth quarter.

On Nov. 2, the company delivered a redemption notice to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 before year end. Corporate debt was $6.01 billion at Sept. 30, compared with $6.07 billion at Dec. 31, 2025.

The company will host a conference call on Nov. 4 at 8:30 a.m. ET to discuss its third-quarter results.