Herc Holdings Inc

Latest Results (03.04.2026):

Herc Holdings Inc. reported its fourth quarter 2025 and full year 2025 results. For Q4 2025 the company delivered equipment rental revenue of $1,039 million (up 24%) and total revenue of $1,209 million (up 27%), with Q4 GAAP net income of $24 million ($0.72 diluted) and adjusted net income of $69 million ($2.07). For the full year 2025 total revenue was $4,376 million (up 23%) and equipment rental revenue was $3,770 million (up 18%); full-year GAAP net income was $1 million ($0.03) while adjusted net income was $239 million ($7.61) and adjusted EBITDA was $1,818 million (up 15%).

Revenue

Q4 2025: Equipment rental revenue $1,039M (+24% YoY); total revenue $1,209M (+27% YoY). Full year 2025: Equipment rental revenue $3,770M (+18%); total revenue $4,376M (+23%). Sales of rental equipment rose (Q4 $147M, FY $509M) as the company sold acquisition fleet to improve mix and utilization.

Profitability & margins

Q4 adjusted EBITDA $519M (+19% YoY) with adjusted EBITDA margin 42.9% (down vs. 46.1% prior year). FY adjusted EBITDA $1,818M (+15%) with margin 41.5% (down vs. 44.4%). Margin compression reflected acquisition-related redundant costs, lower fixed-cost absorption and greater used-equipment auction sales (fair-value mark-ups affecting cost of sales).

GAAP results & one-time items

Q4 GAAP net income $24M ($0.72); FY GAAP net income $1M ($0.03). Full-year results were materially impacted by H&E transaction-related costs (FY transaction expenses $199M) and a $48M loss to adjust Cinelease assets held for sale prior to divestiture, which reduced GAAP earnings versus adjusted measures.

Cash flow, capex & liquidity

Free cash flow for 2025 was $299M and adjusted free cash flow $521M. Net rental equipment capex (net) was $649M (rental spend $1,097M less proceeds $448M). Company ended 2025 with ~$52M cash and ~$1.9B of available liquidity (cash + unused ABL commitments).

Fleet & operations

Total fleet at OEC was ~ $9.5B at Dec 31, 2025; average fleet grew ~35% in Q4 and 26% for the year. Dollar utilization moderated to 37.5% in Q4 (38.5% FY) versus prior-year levels as acquired fleet is being optimized; average fleet age ~45 months.

Balance sheet & leverage

Net debt was $8.1B at year-end 2025 with pro forma net leverage ~3.95x (using pro forma trailing 12‑month adjusted EBITDA including H&E). Interest expense rose (Q4 $134M vs $67M prior-year; FY $416M vs $260M) reflecting new debt facilities used to fund the H&E acquisition.

Acquisition & integration

Herc completed the H&E acquisition in June 2025. Management reports rapid integration progress (IT migration, sales/territory realignment, fleet mix optimization) and run-rate cost synergies ahead of plan, while branch optimization and revenue synergy ramping continue into 2026.

2026 outlook

Guidance for full-year 2026: equipment rental revenue $4.275B–$4.4B; adjusted EBITDA $2.0B–$2.1B; net rental equipment capex $500M–$800M; gross capex $800M–$1.1B. Herc cites scale, recent acquisitions and favorable industry trends as drivers for above-market growth in 2026.