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olivLaw · US equity research

Avis Budget Group, Inc. CAR

Services-Auto Rental & Leasing (No Drivers) · SIC 7510 · Vertical: Services-Auto Rental & Leasing (No Drivers) (SIC 7510)

120.44USD+0.53% · 1 dayClose 05 Nov 2026

Avis Budget Group is a global mobility provider operating the Avis, Budget and Zipcar brands in roughly 180 countries, with an average rental fleet of about 684,000 vehicles in 2025 and revenues of about 11.7 billion USD. In 2026 the company is reshaping its fleet and operating efficiency, and second-quarter results show higher vehicle utilization and lower per-unit fleet costs amid volatile demand.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, Avis Budget Group, Inc. (CAR) stock was 120.44 USD (+0.53% on the day), with market capitalisation 4.3 bn USD, dividend yield 8.30%, beta 1.30, 52-week range 87.69–713.97 USD. Latest reported quarter (Q3 2026): revenue of 3.4 bn USD (−2.4% YoY), net income of 183.0 m USD (−49.0% YoY), diluted EPS 5.15 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
4.3 bn USD
shares as of 28 Oct 2026
P/E (TTM)
unavailable
Diluted EPS TTM -23.10 · TTM to 30 Sept 2026
E/P (TTM)
-19.18%
TTM to 30 Sept 2026
Dividend yield
8.30%
DPS 12m 10.00
Beta (2y)
1.30
Volatility (1y) 112%
52-week range
87.69713.97

Price history

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Technical reading

RSI (14)
64.5
strong (55–70)
Bollinger (20, 2)
94.96 – 117.76
above the upper band · %B 1.12 · band width 21.4%
SMA 50 / 200
114.58 / 153.47
mixed trend
MACD (12, 26, 9)
0.34 / -2.36
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+6.9%−1.1%+8.0 pp—
3 months−12.9%−0.5%−12.5 pp—
6 months−21.8%+4.4%−26.2 pp—
Year to date−6.1%+12.3%−18.5 pp—
1 year−14.1%+13.5%−27.7 pp+11.8%
3 years−39.9%+76.4%−116.3 pp+4.0%
5 years−59.5%+63.7%−123.2 pp—
Max drawdown (1y)
−86.2%
21 Apr 2026 → 21 Oct 2026
Max drawdown (5y)
−86.2%
21 Apr 2026 → 21 Oct 2026
Compound annual growth (5y)
−16.5%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
3.4 bn USD
−2.4% YoY
Net income
183.0 m USD
−49.0% YoY
Diluted EPS
5.15
−49.1% YoY
net / operating
5.3% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue2.7 bn2.4 bn3.0 bn3.5 bn2.7 bn2.5 bn3.0 bn3.4 bn
SG&A312.0 m308.0 m396.0 m422.0 m321.0 m341.0 m385.0 m398.0 m
Interest expense92.0 m97.0 m110.0 m109.0 m106.0 m109.0 m108.0 m108.0 m
Pre-tax income-2.8 bn-677.0 m15.0 m473.0 m-740.0 m-340.0 m73.0 m309.0 m
Income tax-884.0 m-173.0 m10.0 m113.0 m116.0 m-106.0 m10.0 m110.0 m
Net income-2.0 bn-505.0 m4.0 m359.0 m-747.0 m-283.0 m35.0 m183.0 m
Diluted EPS-56.58 ≈-14.350.1010.11-21.22 ≈-8.010.985.15
Operating cash flow772.0 m619.0 m837.0 m ≈1.4 bn ≈437.0 m434.0 m632.0 m ≈1.2 bn ≈
Share repurchases45.0 m3.0 m0 ≈1.0 m ≈3.0 m7.0 m0 ≈2.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue9.1 bn9.2 bn5.4 bn9.3 bn12.0 bn12.0 bn11.8 bn11.7 bn
Revenue YoY+3.1%+0.5%−41.1%+72.4%+28.8%+0.1%−1.8%−1.2%
Net income165.0 m302.0 m-684.0 m1.3 bn2.8 bn1.6 bn-1.8 bn-889.0 m
Net income YoY−54.3%+83.0%−326.5%unavailable+115.1%−41.0%−211.6%unavailable
Diluted EPS2.063.98-9.7119.4457.1642.08-51.23-25.25
Diluted EPS YoY−51.5%+93.2%−344.0%unavailable+194.0%−26.4%−221.7%unavailable
net %1.8%3.3%-12.7%13.8%23.0%13.6%-15.4%-7.6%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
519.0 m USD
Financial debt
6.1 bn USD
Net debt
5.6 bn USD
Equity
-3.1 bn USD
Total assets
31.3 bn USD
Debt / equity
unavailable
Current ratio
0.72x
ROE
unavailable
ROA
-2.9%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
12.0 bn
2024
11.8 bn
2025
11.7 bn

SEC (XBRL)· 19 Feb 2026verified

SG&A
2023
1.4 bn
2024
1.4 bn
2025
1.4 bn

SEC (XBRL)· 19 Feb 2026verified

Interest expense
2023
296.0 m
2024
358.0 m
2025
422.0 m

SEC (XBRL)· 19 Feb 2026verified

Pre-tax income
2023
1.9 bn
2024
-2.6 bn
2025
-929.0 m

SEC (XBRL)· 19 Feb 2026verified

Income tax
2023
279.0 m
2024
-810.0 m
2025
66.0 m

SEC (XBRL)· 19 Feb 2026verified

Net income
2023
1.6 bn
2024
-1.8 bn
2025
-889.0 m

SEC (XBRL)· 19 Feb 2026verified

Diluted EPS
2023
42.08
2024
-51.23
2025
-25.25

SEC (XBRL)· 19 Feb 2026verified

Weighted average diluted shares
2023
38.8 m
2024
35.5 m
2025
35.2 m

SEC (XBRL)· 19 Feb 2026verified

Dividend per share
2023
10.00
2024
—
2025
—

SEC (XBRL)· 16 Feb 2024verified

Balance sheet · USD

Cash
2023
555.0 m
2024
534.0 m
2025
519.0 m

SEC (XBRL)· 19 Feb 2026verified

Current assets
2023
2.1 bn
2024
2.0 bn
2025
2.1 bn

SEC (XBRL)· 19 Feb 2026verified

Property, plant & equipment, net
2023
719.0 m
2024
697.0 m
2025
748.0 m

SEC (XBRL)· 19 Feb 2026verified

Goodwill
2023
1.1 bn
2024
1.1 bn
2025
1.1 bn

SEC (XBRL)· 19 Feb 2026verified

Intangibles (excl. goodwill)
2023
670.0 m
2024
601.0 m
2025
589.0 m

SEC (XBRL)· 19 Feb 2026verified

Total assets
2023
32.6 bn
2024
29.0 bn
2025
31.3 bn

SEC (XBRL)· 19 Feb 2026verified

Accounts payable
2023
487.0 m
2024
450.0 m
2025
453.0 m

SEC (XBRL)· 19 Feb 2026verified

Short-term debt
2023
32.0 m
2024
20.0 m
2025
24.0 m

SEC (XBRL)· 19 Feb 2026verified

Long-term debt
2023
4.8 bn
2024
5.4 bn
2025
6.0 bn

SEC (XBRL)· 19 Feb 2026verified

Current liabilities
2023
2.7 bn
2024
2.7 bn
2025
2.9 bn

SEC (XBRL)· 19 Feb 2026verified

Equity
2023
-343.0 m
2024
-2.3 bn
2025
-3.1 bn

SEC (XBRL)· 19 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
3.8 bn
2024
3.5 bn
2025
3.3 bn

SEC (XBRL)· 19 Feb 2026verified

Investing cash flow
2023
-7.3 bn
2024
-2.8 bn
2025
-5.2 bn

SEC (XBRL)· 19 Feb 2026verified

Financing cash flow
2023
3.5 bn
2024
-781.0 m
2025
1.9 bn

SEC (XBRL)· 19 Feb 2026verified

Dividends paid
2023
355.0 m
2024
0
2025
0

SEC (XBRL)· 19 Feb 2026verified

Share repurchases
2023
951.0 m
2024
70.0 m
2025
7.0 m

SEC (XBRL)· 19 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-1.2%
computed by olivLawFY 2025
Revenue CAGR 3Y
-1.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
16.6%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
-7.0%
computed by olivLawTTM to 30 Sept 2026
FCF margin
unavailable
input data missing

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
-2.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
5.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
0.7x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.2x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
2.7 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
4.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
9.7 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-19.2%
computed by olivLawTTM to 30 Sept 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
0.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
0.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
8.3%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
0.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 4 of at least 6
  • score weight coverage: 25.0% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

120.44 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 4.3 bn USD

Key indicators

Market capitalisation
4.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
input data missing
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
-7.0%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
-1.2%
computed by olivLawFY 2025
Dividend yield
8.3%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 28 Oct 2026
Source: SEC (XBRL)published 04 Nov 2026
verified 2155derived 146

Score by group

25% · Insufficient data

Estimated value range

Low
131.41
USD per share
Mid
150.74
USD per share
High
176.72
USD per share
Price: 120.44 USD
The price is below the range
Potential to the central value: 25.2% (value / price − 1)
Margin of safety: 20.1% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 131.41 – 176.72 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)131.41 – 176.72 (Mid 150.74)
Multiple comparisons use the SIC vertical: Services-Auto Rental & Leasing (No Drivers) (SIC 7510)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-7.0%60 (vs peers)25%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-1.0%0 (on a fixed band)33%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet0.7x0 (on a fixed band)17%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returns0.3%4 (on a fixed band)25%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial0/100 · 1/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial60/100 · 1/3 factors with a value
  • Returns· partial4/100 · 1/2 factors with a value
  • Valuation· partialunavailable · 0/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

AVIS BUDGET GROUP, INC. (CAR). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 11.7 bn USD in 2025; YoY growth -1.2%; net margin -7.0%.

The estimated value range is 131.41–176.72 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 150.74 USD, the price of 120.44 USD leaves a potential of 25.2% (value / price − 1) and a margin of safety of 20.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • The price is below the estimated value range

What contradicts it

  • Revenue CAGR 3Y: -1.0%
  • Current ratio: 0.7x
  • Shareholder yield (distributions): 0.3%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, FCF yield, Payout ratio (FCF).

Versus the vertical median

Services-Auto Rental & Leasing (No Drivers) (SIC 7510) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
—
vertical median —
EV/EBITDA
—
vertical median —
P/S
0.4x
vertical median 0.8x
below median (−53.6%)
P/B
—
vertical median —
ROE
—
vertical median —
Net margin
-7.0%
vertical median -7.3%
at median
EBIT margin
—
vertical median -72.7%
Revenue YoY
-1.2%
vertical median 0.2%
below median (−606.4%)
Net debt/EBITDA
—
vertical median —
Dividend yield
8.3%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RRyder System Inc10.3 bn20.617.1%4.0%+0.2%+56% / +152%
CARAvis Budget Group, Inc.4.3 bn——-7.0%−1.2%−14% / −40%
UHALU-Haul Holding Company1.2 bn6.82.2%2.7%+3.6%+12% / +4%
HTZHertz Global Holdings, Inc565.2 m——-7.3%−6.0%−66% / −79%
MRTMarti Technologies, Inc.167.8 m——-105.6%+110.3%−20% / +199%
VAIValor Energy Inc.24.5 m——-340.9%−18.5%+30% / −47%

1- and 3-year price returns: for CAR from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).

    In brief

    Avis Budget Group is a global mobility provider operating the Avis, Budget and Zipcar brands in roughly 180 countries, with an average rental fleet of about 684,000 vehicles in 2025 and revenues of about 11.7 billion USD. In 2026 the company is reshaping its fleet and operating efficiency, and second-quarter results show higher vehicle utilization and lower per-unit fleet costs amid volatile demand.

    SWOT

    Strengths

    • The company has globally recognized brands, an extensive location network and a leading position at many airports in North America and Europe 1.
    • Diversification between weekday commercial demand and weekend and holiday leisure demand balances revenues 1.
    • Licensing revenues offer a high margin revenue stream with relatively limited additional costs 1.

    Weaknesses

    • The large 2025 net loss was influenced by depreciation and fleet revaluation costs, showing the vulnerability of margins 1.
    • A fleet of risk vehicles exposes the company to swings in residual values in the used vehicle market 1.
    • Reliance on third-party distribution channels and asset-backed financing puts pressure on costs and liquidity 13.

    Opportunities

    • The Waymo partnership and expansion of autonomous services could open new revenue streams if they develop 13.
    • Expanding digital services and the premium Avis First offer could strengthen customer loyalty 1.
    • Refinancing credit facilities with longer maturities could reduce near-term refinancing risk 3.

    Threats

    • Price-based competition and entry of low-cost mobility companies could reduce volume and margins 1.
    • Military conflicts in the Middle East and Eastern Europe can create volatility in costs and travel demand 1.
    • Tariffs and regulatory changes can raise fleet costs and complicate international operations 12.

    Risks

    • Intense price competitionhigh

      Pricing pressure from rivals and new entrants could lead to lost rental volume and reduced margins.

    • Fleet costs and residual valuehigh

      A fall in used vehicle values could produce sale losses or accelerated depreciation, especially for risk vehicles.

    • Travel demand and the economymedium

      An economic slowdown or lower air travel could reduce rental volume, particularly in peak season.

    • Debt and financingmedium

      Substantial debt and higher interest costs could add financial pressure if fleet funding becomes more expensive or restricted.

    • Technology and security risklow

      Cyberattacks or failures of information systems could disrupt bookings and operations and damage reputation.

    Investment thesis

    What would need to be true (bull case)

    • If fleet utilization and cost efficiency hold, margins could recover further, and the company could benefit from its leading airport position 23.
    • The autonomous partnership with Waymo could become a recurring revenue source if it expands beyond Dallas 13.
    • Diversification across brands and demand segments could cushion shocks in any single market or segment 1.

    What would break the thesis

    • If demand stays weak and volume keeps falling, fixed fleet costs could pressure financial results 23.
    • Losses from depreciation and the revaluation of electric vehicles show that residual value risk remains high 1.
    • Competition from low-cost mobility companies could limit the ability to hold prices 1.

    What to watch

    • Trend in fleet utilization and per-unit fleet costsQ3 2026
    • Progress and expansion of the Waymo partnership in Dallas2026
    • Liquidity and fleet funding after the refinancingQ3 2026
    • Effects of tariffs on new vehicle costs, as discussed in the next annual reportnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).

    The business

    Avis Budget Group, Inc. is a leading global provider of mobility solutions through its Avis, Budget and Zipcar brands, offering car and truck rental as well as car sharing, with its brands operated directly or under licence in about 180 countries 1. In 2025 the company completed about 38 million vehicle rental transactions worldwide and reported revenues of about 11.7 billion USD 1. Management views licensing revenues as a source of high margin, since the costs associated with licensee fees are relatively limited 1.

    Operations are organized into two reportable segments: Americas, covering vehicle rental in North, South and Central America and the Caribbean along with car sharing and licensees, and International, covering Europe, the Middle East, Africa, Asia and Australasia 1. The Americas segment generated 8,900 million USD of revenue in 2025 and International 2,752 million USD 1. The company also runs the Payless and Apex brands in the value segment and a truck rental business that is one of the largest in the United States 1.

    Segments

    Corporate and other

    Unallocated corporate costs are reported as a negative item in Adjusted EBITDA, not assigned to any single segment, in the company's reconciliation 1.

    Market context

    The vehicle rental market is highly competitive, with price a primary factor, and new entrants such as automakers, ride-hailing and car sharing companies can add competitive pressure 1. Company revenues are sensitive to travel demand, fleet costs and used vehicle prices, and a weaker quarter can affect results if demand falls 12.

    In the second quarter of 2026 revenues were 2,998 million USD, slightly below the prior-year level, and the company reported vehicle utilization of 72.6 percent 23. These figures suggest the market remains sensitive to volume, but fleet adjustments could protect margins if demand shifts 3.

    Trends

    • Fleet adjustment and per-unit coststailwind

      The company resized its fleet and lowered per-unit fleet costs in the second quarter of 2026, supporting margins even as volume eased slightly 23.

    • Electric vehicles and depreciationheadwind

      A review of the strategy for certain United States electric rental vehicles led to accelerated depreciation and a large net loss in 2025, showing the residual value risk in the fleet 1.

    • Autonomous mobility and technology partnershipsmixed

      The Waymo partnership for autonomous ride-hailing in Dallas went live in 2026 and could open new revenue sources if it expands, although adoption remains uncertain 13.

    • Tariffs and vehicle acquisition costsheadwind

      Uncertainty around tariffs and supply chains can raise the cost of new vehicles and affect fleet availability, which could pressure margins if it persists 12.

    Competitive position

    The company competes with other global rental operators and with new players in mobility, including ride-hailing, car sharing and automakers entering existing markets 1. Competition centers on price, and in the truck segment a fleet is harder to shrink quickly, which amplifies pricing pressure 1.

    • Global vehicle rental operators

      Direct competitors in North America, Europe and Australasia, where competition is mainly on price and volume 1.

    • Ride-hailing companies

      Can offer mobility at lower cost and change driving patterns, which could reduce demand for rentals 1.

    • Car sharing companies

      Compete directly with the Zipcar business, especially in urban areas and university campuses 1.

    • Automakers offering mobility services

      Can enter the mobility market and influence both demand and the price of used vehicles 1.

    News & filings

    In the press

    The latest news item in our archive is from 19 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Avis Budget Group, Inc. · 19 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Avis Budget Group, Inc. · 29 Jul 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Avis Budget Group, Inc. · 28 Jul 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.