Avis Budget Group's (CAR) stock plunged 5.8% in after-hours trading on Tuesday, following the company's fourth-quarter 2024 results that reported a massive net loss of $1.96 billion. The loss was primarily driven by a $2.3 billion impairment charge related to accelerating the rotation of its vehicle fleet in the Americas segment.
The car rental company's revenue for the quarter declined 2% year-over-year to $2.71 billion, missing analysts' expectations. Adjusted EBITDA was a loss of $101 million, compared to a profit of $311 million in the prior-year quarter.
Despite the disappointing results, Avis Budget expressed confidence in generating at least $1 billion in Adjusted EBITDA in 2025, citing sustained strong travel demand and the necessary actions taken to better position the company for future growth.
In a separate announcement, Avis Budget revealed a leadership transition, with CEO Joseph A. Ferraro stepping down on June 30, 2025, after serving in the role since 2020. Brian Choi, the company's current Chief Transformation Officer, will succeed Ferraro as CEO, effective July 1, 2025. Jagdeep Pahwa, who has served as the company's Chairman since May 2024, has been named Executive Chairman.
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