Key Highlights

  • USD 650 million in cash received on October 5, 2026 under a previously reported settlement, to be recognized in the fourth quarter rather than the third.
  • USD 3.4 billion of third-quarter revenue, down 2% from USD 3.52 billion, while adjusted EBITDA fell 8% to USD 513 million.
  • 74.0% total vehicle utilization, up 2 points year over year, with Americas at 74.1%, up 2.8 points and a third-quarter record.
  • USD 866 million of Liquidity at quarter-end plus USD 2.5 billion of additional fleet funding capacity, with a USD 350 million note Redemption planned before year end.

Record Utilization Cushions a Revenue Dip

Avis Budget Group (NASDAQ:CAR) reported third-quarter results on November 3, 2026. Revenue was USD 3,436 million versus USD 3,519 million, a 2% decline, with Americas revenue down 3% to USD 2,552 million and international down 2% to USD 884 million. Revenue per day excluding currency was USD 71.54, a slight increase and the third straight quarter of positive annual growth. Total vehicle utilization reached 74.0%, which management said was the best Americas utilization in twenty years despite softer travel demand. Per-unit fleet costs rose 4% to USD 316 a month excluding currency, which the company said was within expectations.

Profit Falls as the Release Reports Two Net Income Figures

Income before taxes fell to USD 309 million from USD 473 million, and adjusted EBITDA, a non-GAAP measure, dropped to USD 513 million from USD 559 million. The release headline says net income was USD 199 million, while the summary table shows USD 183 million attributable to the company versus USD 359 million a year earlier. The extract does not explain the gap, so both are shown here. For nine months the company reported a net loss attributable of USD 65 million against USD 142 million, and adjusted EBITDA of USD 686 million versus USD 743 million. The company rents vehicles under the Avis, Budget and Zipcar brands in about 180 countries through roughly 10,000 locations, so fleet costs and Demand drive results.

Settlement Cash, Heavy Debt and Notes Redemption

The USD 650 million payment came from the settlement with Pentwater Capital Management and certain affiliated persons, received on October 5, 2026. Because it arrived after quarter-end, it will be recognized in the fourth quarter. For scale, that equals about 11% of the USD 6,011 million of corporate debt reported at September 30 (own arithmetic). On November 2, the company issued a notice to redeem the remaining USD 350 million of its 5.750% senior notes due 2027 before year end. The Balance Sheet still shows USD 18,920 million of vehicle program debt and a stockholders' Equity Deficit of USD 3,210 million. Cash was USD 561 million. Risks listed include tariffs on vehicles, used car prices, travel demand Volatility and debt covenants. A conference call is set for November 4, 2026, at 8:30 a.m. ET.

Where Things Stand

The settlement will feed into fourth-quarter reporting, but the third quarter was soft. Avis Budget Group (NASDAQ:CAR) booked lower revenue, lower pretax income and lower adjusted EBITDA even as fleet utilization hit a record. The USD 650 million, received October 5, is one-time cash and will be recognized in the fourth quarter, not a sign of recovering rental profit. Fleet costs, pricing and the debt redemption will show how much of it strengthens the balance sheet.