Herc Holdings Inc

Latest Results (15.05.2026):

Herc Holdings Inc. — Third quarter 2025: Total revenues rose 35% year‑over‑year to $1,304 million (equipment rental revenue $1,122 million, +30%) as the company continued integrating its H&E acquisition. GAAP net income was $30 million, or $0.90 per diluted share, while adjusted net income was $74 million, or $2.22 per diluted share. Adjusted EBITDA grew 24% to $551 million with an adjusted EBITDA margin of 42.3%. The company completed full IT integration of H&E and closed the divestiture of Cinelease on July 31, 2025.

Revenue growth

Total revenues for Q3 2025 were $1,304M, up 35% from $965M a year earlier, driven primarily by a 30% increase in equipment rental revenue to $1,122M and higher sales of rental equipment (+$70M).

Profitability and adjusted metrics

GAAP net income was $30M ($0.90 diluted). Adjusted net income was $74M ($2.22 diluted). Adjusted EBITDA rose 24% to $551M; adjusted EBITDA margin declined to 42.3% from 46.2% a year ago, reflecting acquisition‑related redundancies and lower‑margin used equipment sales.

Costs and expenses

Direct operating expenses were $467M (41.6% of equipment rental revenue) vs. 38.6% prior year. Depreciation of rental equipment increased 41% to $246M. SG&A was $166M (14.8% of equipment rental revenue). Interest expense rose to $134M due to new debt facilities used to fund the H&E acquisition.

Acquisition and integration

Herc completed full IT integration of H&E in Q3 2025, unifying ERP, fleet management, CRM, ProControl and other systems; management cited this as a key step toward realizing synergies and market‑share expansion.

Fleet, capex and operations

As of Sept. 30, 2025 total fleet was about $9.6B OEC and average fleet in Q3 grew ~38% year‑over‑year. Net rental equipment capex for nine months was $529M (rental expenditures $835M less $306M proceeds).

Balance sheet and leverage

Net debt was $8.2B at Sept. 30, 2025 with pro forma net leverage of 3.8x (using pro forma trailing‑12‑month adjusted EBITDA including H&E). Cash, equivalents and unused ABL commitments provided roughly $1.8B of liquidity.

Divestiture

Herc completed the sale of the Cinelease studio entertainment business on July 31, 2025 for initial cash consideration of $100M (plus potential earn‑outs) and used proceeds to repay part of the ABL facility.

Outlook

The company reaffirmed full‑year 2025 guidance (excluding Cinelease): equipment rental revenue $3.7B–$3.9B; adjusted EBITDA $1.8B–$1.9B; net rental equipment capex $400M–$600M; gross capex $900M–$1.1B.