Avis Budget Group Is Slashing Fleet Costs & Boosting Cash—But Does This Approach Change Our Stance Towards The Stock?

Avis Budget Group recently reported its financial results for the fourth quarter and full year of 2024. The company achieved $2.7 billion in revenue for the quarter and $11.8 billion for the full year. However, the company faced a significant adjusted EBITDA loss of $101 million for the quarter, although it posted an adjusted EBITDA of $628 million for the full year. A critical highlight of the report was the $2.5 billion non-cash asset impairment and related charges, due to an accelerated fleet rotation strategy primarily affecting the Americas segment.