Key points:

Island Car Rentals Limited is preparing to enter the Guyanese market and later expand into the Cayman Islands as part of its regional growth strategy.

The company is investing in digital upgrades and solar energy projects to improve efficiency and reduce operating costs.

Revenue and profit rose in 2025, but weaker debt-servicing metrics and the potential economic fallout from Hurricane Melissa remain risks.

Island Car Rentals (ICR) Limited is preparing to enter the Guyanese market as the Jamaican car rental company pursues regional expansion and digital upgrades to drive growth and improve efficiency.

The company also plans a medium-term expansion into the Cayman Islands to tap leisure and business tourism demand after establishing its Guyanese operations.

The car rental company is working to acquire all regulatory approvals to enter the Guyanese market. The company is scheduled to commence construction in June and expects to reach full operational capacity over the next three years. The entry to the Cayman Islands market would be executed in the medium following the Guyanese expansion.

“The Guyana operations will primarily focus on long-term leases and corporate rentals, while the Cayman Islands operations are intended to target leisure and business tourism-related demand,” the CARICRIS (Caribbean Information and Credit Rating Services Limited) report stated.

ICR had previously explored the Dominican Republic as a potential market, but there was no update provided in the latest CARICRIS report. The company has pursued new growth opportunities in the Jamaican market which included truck rental services and introducing car rental services at the Ian Fleming International Airport in April 2025. This move positioned the company to better capture tourism-related demand along the North Coast of Jamaica where more than 90 per cent of the island’s hotel capacity exists.

“The planned expansion into other territories bodes well for the Company’s sustainability as this diversification, once successful, is expected to insulate ICR’s operations from economic downturns in any single territory,” the report added.

Apart from diversifying its offerings and geographical markets, ICR plans to install solar panels at its Kingston head office and Montego Bay locations during the April 2027 financial year (FY) which begins on May 1. The reduced cost of electricity should flow into the company’s operational efficiency efforts which is aimed at digitizing the business and making it more productive.

The company is set to launch a refreshed website in May and intends to launch its mobile application in the coming months. ICR also plans to invest in a payables and receivables management system to enhance its cashflow management. This is on top of the recent move to implement electronic contracts, electronic signature pads and a fleet-wide barcoding system to support faster turnaround times and inventory management of vehicles.

“ICR also advanced its digitisation initiatives, reducing reliance on paper-based processes and supporting greater efficiency and cost savings across the organisation while enhancing the overall customer experience. To that end, the company rolled out several new digital booking and fleet management tools,” the CARICRIS report noted.

Due to the company changing auditor from Ian Walters and Company to BDO Jamaica, the company’s last available audited financial statements are for the April 2023 FY. The company was working with its new auditors to finalise the numbers by March 2026. CARICRIS has flagged this as a risk which could lower its credit rating.

According to management’s unaudited financials for the year ended April 2025, operating revenue rose three per cent to $2.84 billion, while operating profit increased 20 per cent to $1.07 billion and net profit jumped 74 per cent to $434.91 million despite finance charges nearly tripling. Despite the stronger earnings, debt-servicing metrics weakened, with the debt service coverage ratio falling to 4.5 times from 8.3 times and interest cover declining to 8.5 times from 22.5 times, although both remained within healthy ranges. The company is seeking an interest-rate reduction on its $1.8-billion term loan as part of broader cost-saving efforts.

Hurricane Melissa disrupted tourism-related rentals in October 2025 and could temper revenue growth in fiscal 2026, although the company benefited from a temporary increase in truck rentals linked to clean-up and recovery efforts. For the six months ended October 2025, operating revenue rose nine per cent to $1.53 billion while net profit more than doubled to $387.80 million, helped by lower finance charges, higher visitor arrivals and increased activity during the general election period. Total assets stood at $4.75 billion, with debt at $2.68 billion.

“While the hurricane is expected to contribute to a temporary slowdown in Jamaica’s economic activity, including potential moderation in tourism and visitor arrivals, ICR’s diversified service offerings and proactive operational strategies are expected to somewhat mitigate potential adverse impacts in FY2026 and FY2027,” CARICRIS noted.

The ratings agency gave ICR a stable outlook and reaffirmed its CariBBB- on the regional scale and jmBBB+ on the Jamaican national scale. The company’s board approved an enterprise risk management framework which is expected to strengthen risk management across the business. ICR also completed a draft succession planning framework and staff audit to address leadership transition risk in the 2025 FY.

ICR is a 53-year-old car rental company which was founded by the late Michael Campbell. Ryan Parkes founded ICR Holdings which acquired ICR in September 2023. Parkes is now the chief executive officer of ICR Holdings and has taken on a more active role at ICR following the retirement of General Manager Dulcie Moody in December 2025. Moody will continue to consult with the company until a replacement is found.