By Elias Schisgall

Avis Budget Group posted lower revenue in the fourth quarter and reported an impairment charge tied to its U.S. electric vehicle rental fleet that weighed on its bottom line.

Shares fell 14.8% to $105.00 in post-market trading.

The car rental company on Wednesday reported a loss of $747 million, or $21.25 a share, compared with a loss of $1.96 billion, or $55.66 a share, a year earlier.

Revenue fell to $2.66 billion from $2.71 billion a year earlier.

Analysts surveyed by FactSet were expecting the company to report a loss of 22 cents a share and revenue of $2.74 billion.

The company said its loss for the quarter reflected $518 million in long-lived asset impairment and other related charges tied to its strategy around U.S. electric vehicles. The charge was recorded to reduce the carrying value of certain U.S. EV rental car vehicles, the company said.

"During the fourth quarter of 2025, we reviewed our fleet strategy, specific to certain United States electric vehicle rental car vehicles, and as a result, shortened the useful life associated with such vehicles," the company said.

Avis Budget in December sold EVs to a joint venture and received $183 million in cash proceeds for the monetization of tax credits tied to the cars, the company said.

In the Americas, revenue declined 4% to $2.04 billion, down from $2.12 billion a year earlier. International revenue grew 5% to $624 million, up from $593 million.

Rental days declined 1% to 41,321, down from 41,833. Rental days were roughly flat in the Americas but fell 5% internationally.

Monthly fleet costs per unit fell 18%, while revenue per day held flat during the quarter.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 18, 2026 17:06 ET (22:06 GMT)

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