HRI · Herc Holdings Inc.

Herc Holdings reported first quarter 2026 results that reflected the impact of the H&E acquisition completed in June 2025. Equipment rental revenue increased 33% to $981 million, driven by a larger fleet from the acquisition and increased volume on mega projects. Total revenues rose 32% to $1,139 million. However, the company reported a GAAP net loss of $24 million ($0.72 loss per diluted share), compared to a net loss of $18 million in the prior-year period, primarily due to higher interest expense ($128 million vs. $62 million) from debt issued to fund the acquisition and increased depreciation of rental equipment (up 41% to $242 million). On an adjusted basis, net income was $7 million ($0.21 per diluted share) versus $37 million ($1.30) a year ago. Adjusted EBITDA grew 33% to $448 million, with margin flat at 39.3%. Dollar utilization declined to 36.4% from 37.6%, attributed to a higher mix of general rental fleet from the acquisition. Management highlighted successful integration of H&E, including a 25% increase in specialty locations and expanded sales network. The company affirmed its full-year 2026 guidance: equipment rental revenue of $4.275-$4.4 billion, adjusted EBITDA of $2.0-$2.1 billion, net rental equipment capex of $500-$800 million, and gross capex of $800-$1.1 billion. Free cash flow nearly doubled to $94 million. Net leverage stood at 3.96x, and liquidity was approximately $1.9 billion. A quarterly dividend of $0.70 per share was declared.