Key Highlights

  • The company received USD 650 million on October 5, 2026 under a settlement reported earlier, with the amount recognized in the fourth quarter instead of the third.
  • Third-quarter Revenue of USD 3.4 billion slipped 2% from USD 3.52 billion, and adjusted EBITDA dropped 8% to USD 513 million.
  • Total vehicle utilization rose 2 points to 74.0%, while the Americas hit 74.1%, up 2.8 points and a third-quarter high.
  • Liquidity stood at USD 866 million at quarter-end, plus USD 2.5 billion of extra fleet funding capacity, and a USD 350 million note Redemption is planned before year-end.

Fleet Efficiency Hits a Record as Revenue Eases

Avis Budget Group (NASDAQ:CAR) released third-quarter figures on November 3, 2026. Revenue was USD 3,436 million, compared with USD 3,519 million, a 2% fall, with Americas revenue down 3% to USD 2,552 million and international revenue down 2% to USD 884 million. Excluding currency effects, revenue per day averaged USD 71.54, a slight gain and the third consecutive quarter of positive annual growth. Vehicle utilization reached 74.0%, which management described as the strongest Americas utilization in twenty years despite softer travel demand. Fleet costs per unit climbed 4% to USD 316 a month excluding currency, a rise management said was within its expectations.

Pretax Income Shrinks and Two Net Income Figures Appear

Pretax income declined to USD 309 million from USD 473 million, while adjusted EBITDA, a non-GAAP metric, fell to USD 513 million from USD 559 million. The release headline cites net income of USD 199 million, but the summary table lists USD 183 million attributable to the company, against USD 359 million a year ago. The extract does not reconcile the two, so this article reports both. Across nine months, the company posted a net loss attributable of USD 65 million versus USD 142 million, and adjusted EBITDA of USD 686 million against USD 743 million. Operating under the Avis, Budget and Zipcar names in roughly 180 countries through about 10,000 locations, the company's results hinge on fleet costs and demand.

One-Time Settlement Cash, Heavy Debt and a Notes Call

The USD 650 million came from a settlement with Pentwater Capital Management and certain affiliated persons, received on October 5, 2026. Since it landed after quarter-end, it will be booked in the fourth quarter. As a rough yardstick, it equals about 11% of the USD 6,011 million of corporate debt reported at September 30, based on simple arithmetic. On November 2, the company issued notice to redeem the remaining USD 350 million of its 5.750% senior notes due 2027 before year-end. The Balance Sheet still carries USD 18,920 million of vehicle program debt and a stockholders' Equity Deficit of USD 3,210 million, while cash stood at USD 561 million. Listed risks include vehicle tariffs, used car prices, travel Demand swings and debt covenants. A conference call is scheduled for November 4, 2026, at 8:30 a.m. ET.

Where Things Stand

The USD 650 million is one-time cash, not a sign that rental profit is recovering. Avis Budget Group (NASDAQ:CAR) booked lower revenue, lower pretax income and lower adjusted EBITDA even as fleet use set a record, and the settlement cash lands in the fourth quarter. Fleet costs, pricing and the planned notes redemption will show how much of that cash strengthens the balance sheet on a lasting basis.