Herc Holdings Inc

HRI

Equity

ISIN US42704L1044 / Valor 32837395

New York Stock Exchange, Inc (2024-12-24)

USD 191.45+1.16%

Herc Holdings Inc
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Herc Holdings Inc., through its subsidiary Herc Rentals, operates as a leading equipment rental company with a focus on providing a comprehensive range of equipment, services, and solutions designed to meet the diverse needs of its customers. Established with nearly 60 years of expertise in the equipment rental industry, Herc Holdings has grown to employ approximately 7,400 individuals and operates around 400 company-operated branches across the United States and Canada. The company caters to a broad spectrum of customer markets, leveraging its extensive inventory and industry knowledge to ensure safe, efficient, and effective performance for its clients. Herc Holdings Inc. made its debut on the New York Stock Exchange on July 1, 2016, trading under the ticker symbol “HRI,” marking a significant milestone in its corporate history.

Summarized from source with an LLMView SourceSector: Finance

Record Revenue Growth

In the third quarter of 2024, Herc Holdings Inc. achieved record equipment rental revenue of $866 million, marking a 13% increase from the previous year. This growth was driven by robust demand from mega projects and the expansion of the company's branch network and recent acquisitions. Total revenues for the quarter reached $965 million, a 6% increase compared to the same period in the prior year.

Net Income and Earnings

Herc Holdings Inc. reported a net income of $122 million for the third quarter of 2024, an 8% increase from the $113 million reported in the prior-year period. The adjusted net income rose by 9% to $124 million, or $4.35 per diluted share, compared to $114 million, or $4.00 per diluted share, in the previous year. The effective tax rate for the quarter was 24%, slightly higher than the 23% in the prior-year period.

Adjusted EBITDA Performance

The company's adjusted EBITDA for the third quarter of 2024 increased by 9% to $446 million, compared to $410 million in the prior-year period. The adjusted EBITDA margin improved to 46.2% from 45.2% in the previous year. This growth reflects Herc Holdings Inc.'s ability to manage costs effectively while expanding its business operations.

Capital Expenditures and Fleet Management

Herc Holdings Inc. reported net rental equipment capital expenditures of $555 million for the nine months ended September 30, 2024, compared to $869 million in the prior-year period. The company's total fleet was valued at approximately $7.1 billion at original equipment cost (OEC) as of September 30, 2024, with an average fleet age of 46 months. The company continues to invest in its fleet to support growth and optimize operations.

Updated 2024 Outlook

Herc Holdings Inc. updated its full-year 2024 guidance, projecting equipment rental revenue growth of 9.5% to 11%, up from the previous range of 7% to 10%. The adjusted EBITDA guidance remains at $1.55 billion to $1.60 billion. The company expects to capitalize on higher construction spending by investing in its fleet, pursuing strategic acquisitions, and expanding its product offerings.

Summarized from source with an LLMView Source

Key figures

29.7%1Y

20.8%3Y

283%5Y

Performance

43.2%1Y

48.3%3Y

61.6%5Y

Volatility