Struggles persist with Sixt's profits remaining elusive
In the heart of 2025, car rental giant Sixt has announced a significant profit increase, with earnings before taxes (EBT) surging by 71% in the second quarter and consolidated revenue breaking records, growing over 7% year-on-year to more than €1.08 billion. This impressive performance has been confirmed with expectations of continued strong profitability despite challenging market conditions[1][3][5].
Sixt's success can be attributed to several key factors. The company has achieved revenue growth in all regions, driven primarily by short-term rentals. They maintained a high premium vehicle share of 54%, offering more premium vehicles than ever before to meet strong demand[1].
The company's focus on fleet management efficiency is another crucial factor. Sixt implemented moderate fleet growth aligned with demand, significantly reduced fleet holding costs, and increased the proportion of leased vehicles. While leasing expenses reduce EBITDA (being accounted for above EBITDA line), they improve fleet flexibility and asset management, contributing to profitability below the EBITDA line through depreciation and amortization adjustments[1][2].
Cost management has also played a significant role in Sixt's success. Fleet expenses rose but were offset by more efficient fleet utilization. Personnel and other operating expenses increased but remained controlled relative to revenue growth. Depreciation and amortization declined, suggesting improved fleet asset management or changes in fleet composition[2].
Sixt has adapted to the market environment by focusing on attractive mobility solutions and geographic expansion, notably strong growth in Europe and the U.S., confirmed by record revenue levels in Q3 2025 reaching €1.24 billion and EBT around €246 million with a margin near 20%[4][5].
Regarding used car prices and insurance costs, while specific figures are not detailed, the reduced fleet holding costs imply Sixt has successfully managed asset depreciation and resale values amidst used car market volatility. The increase in leased vehicles also spreads risk and potentially reduces exposure to residual value risk on used cars. The insurance costs are typically embedded within fleet and other operating expenses, and their controlled overall expense growth suggests effective cost management in these areas[1][2].
The USA, the largest car rental market in the world and a strategic growth market for Sixt, continues to be a significant market for the company's growth. The rental fleet of Sixt grew by almost six percent in the second quarter, averaging 197,800 vehicles. Despite the global situation, Sixt's business in the USA is stable[2].
However, Chief Financial Officer Franz Weinberger expressed caution about predicting rental car prices. The company's fleet in the USA was deliberately planned to be slightly smaller due to market uncertainty. Despite this, Sixt earned nearly 66 million euros in profits after taxes in the first half of the year, and the profits in the second quarter were significantly higher, at around 78 million euros[6].
In summary, Sixt’s financial success in 2025 is rooted in a strategic focus on premium fleet offerings, prudent fleet size management with an increased leasing share, rigorous cost control, and strong regional growth, allowing it to navigate rising used car prices, insurance costs, and macroeconomic uncertainty effectively[1][2][4][5]. The USA remains a key market for Sixt's growth, despite uncertainties in the global car rental industry.
The car rental giant, Sixt, attributed its success in the industry to a strategic focus on fleet management efficiency, cost management, and strong regional business growth, particularly in Europe and the USA. The company's emphasis on the finance sector, such as efficient fleet asset management and effective cost control, significantly contributed to its profitable performance in the business sector.
