Hertz Global Stock Climbs on $154 Million Settlement News
The car rental giant is set to receive a significant cash infusion from an automotive parts antitrust lawsuit, boosting investor confidence.
Shares of Hertz Global Holdings (NASDAQ: HTZ) gained traction in after-hours trading Tuesday following the announcement of a significant legal settlement distribution. The company disclosed it is slated to receive approximately $154 million, providing a fresh capital infusion that was well-received by the market.
The payment stems from a in the In re Automotive Parts Antitrust Litigation. According to the company, the funds are expected to be received around September 30, 2025. This windfall will bolster a balance sheet that included about $503 million in total cash and cash equivalents as of the end of June.
The news comes as Hertz is showing signs of a significant operational turnaround. The company recently delivered what it called its , reporting positive Adjusted Corporate EBITDA and a half-billion-dollar improvement in profitability for the second quarter of 2025. The upcoming settlement adds to the positive financial momentum as investors look ahead to the company's third-quarter results, which are scheduled for release on November 4.
Beyond its improving financials, Hertz has been actively pursuing new growth avenues. A recently announced pilot program with Amazon to sell used vehicles through Amazon Autos could open a major new retail channel. This initiative complements the nationwide expansion of its Hertz Rent2Buy® program, which allows consumers to have an extended test drive before purchasing a vehicle. These strategic moves highlight a forward-looking approach to fleet management and sales.
The combination of a strengthening financial position and strategic growth initiatives appears to be resonating with investors. The stock saw in the days leading up to the announcement, and the after-hours price jump to $7.10 suggests growing confidence in the company's trajectory.