Hertz Global said its adjusted earnings in the second quarter are shaping up to be on the low end of its expectations after used-car demand was worse than expected.

The car-rental company said Wednesday it expects adjusted corporate earnings before interest, taxes, depreciation and amortization will be between $50 million and $80 million. That is within Hertz's projected range, but toward the lower end.

Shares dropped 18% to $4.14 in premarket trading Wednesday.

Net depreciation per unit per month, which measures how much value a rental vehicle loses in a month, will be about $300 for the second quarter, Hertz said.

Hertz executives said in early May they expected depreciation per unit would be well below $300 per month, as they expected to make gains on the sale of vehicles in the second quarter.

Hertz said Wednesday it realized losses on the sale of vehicles in May compared with gains in April due to the soft used-car market.

The company expects results for fleet size, revenue per day and rental days to align with or slightly exceed previous expectations.

Separately, Hertz said it plans to offer $100 million of its stock in a public offering. Shares will be loaned by Hertz to J.P. Morgan Securities, which is one of the underwriters of the offering. J.P. Morgan will receive all the proceeds from the offering and pay a nominal lending fee.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

June 24, 2026 08:09 ET (12:09 GMT)

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