Avis Budget Group Q2 Earnings Call Highlights
In its second-quarter earnings call in July 2026, Avis Budget Group reported a reduction of its Americas fleet by 5% year over year due to softer travel demand. The company prioritized utilization and profitability over rental-day growth, achieving record vehicle utilization at 73.2%, which helped limit the decline in rental days to just 2%. Despite this, revenue for the region fell slightly by 1.9%, while adjusted EBITDA rose 7.7%. The company faced challenges from vehicle recalls costing over $50 million year-to-date and weaker international operations with a 11% drop in adjusted EBITDA due to lower inbound travel and increased European fleet supply. Avis Budget reiterated its full-year adjusted EBITDA guidance of $850 million to $1 billion, aiming for at least one turn reduction in leverage by the end of the year. The company also expects a potential $650 million settlement from Pentwater, pending court approval, which will be used to retire debt due in 2027. CEO Brian Choi noted that forward-booking momentum weakened after mid-April and cited broader consumer uncertainty as key factors affecting demand.
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Topics: adjusted EBITDA debt reduction fleet strategy revenue decline utilization rates