$CAR · AVIS BUDGET GROUP, INC.
Avis Budget Group reported Q3 2026 results with revenue of $3.436B, down 2.4% from $3.519B a year ago. Net income attributable to Avis Budget fell 49% to $183M ($5.15 diluted EPS) from $359M ($10.11 diluted EPS). Adjusted EBITDA was $513M, and the company highlighted record Americas vehicle utilization of 74.1%.
- Q3 net income attributable to Avis Budget fell to $183M from $359M YoY, a 49% decline.
- Diluted EPS dropped to $5.15 from $10.11 YoY, missing the prior-year comparable by nearly half.
- Revenue declined 2.4% to $3.436B from $3.519B, with rental days down 3% YoY.
- Americas vehicle utilization hit 74.1%, a Q3 record, but per-unit fleet costs rose 7% to $330/month.
- Nine-month net loss attributable to Avis Budget was $65M vs. a $142M loss in the prior-year period.
Extended-hours trading shows CAR at $97.04, down 11.25% from the regular-session close of $109.34. The steep after-hours selloff reflects the magnitude of the earnings decline — net income nearly halved YoY — on a $3.86B market cap.
A 49% net income collapse at a major cyclical bellwether, with shares down 11% after-hours, signals that fleet-cost inflation is overwhelming operational improvements.
Avis's Q3 results contrast with a still-recovering travel sector. While utilization hit a 20-year Americas record, the 49% net income drop suggests pricing power is insufficient to offset rising fleet costs — a dynamic peers like Hertz also face.
Per-unit fleet costs rose 7% in Americas ($330/month) and 4% company-wide ($316/month), compressing margins. The company flags softer travel demand, vehicle supply disruptions, and used-vehicle market volatility as ongoing risks. The $650M Pentwater settlement cash arrives in Q4 but is a one-time item.