Herc Rentals revenue climbs 20.2% in Q2
Equipment rental revenue increased 23.2% YoY; company raises full-year guidance
Herc Rentals’ revenue increased 20.2% year over year in the second quarter as the H&E acquisition expanded its fleet and branch network, helping capture demand from large construction projects.
The quarter marked an “important turning point” after Herc completed the H&E integration in Q1, Chief Executive Larry Silber said today in the release. Revenue and cost synergies are tracking to plan, while key metrics improved sequentially and YoY on a comparable basis.
“Our growth continues to be led by national accounts, fueled by robust mega project activity and a higher mix of specialty equipment rentals,” he said.
Herc’s average fleet increased 20% to $9.6 billion at original equipment cost, according to the release. Dollar utilization improved as Herc increased fleet efficiency and shifted toward higher-return equipment.
Fuel inflation remained a headwind. Direct operating expenses represented 45.8% of equipment rental revenue, up 2.2 percentage points YoY, reflecting the H&E acquisition, newer locations and higher transportation and fuel costs.
BY THE NUMBERS
Bonita Springs, Fla.-based Herc reported in Q2:
- Equipment rental revenue rose 23.2% YoY to $1.1 billion;
- Sales of rental equipment increased 3.8% YoY to $110 million;
- Dollar utilization rose 1 percentage point YoY to 39.3%; and
- Net income totaled $19 million, compared with a $35 million net loss a year earlier.
Herc raised 2026 equipment rental revenue guidance to between $4.375 billion and $4.475 billion, according to the release. Meanwhile net rental equipment capital expenditure guidance rose to between $850 million and $950 million.
Shares of Herc [NYSE: HRI] dropped 7.33% from market open to $148.24 as of market close today. It has a market capitalization of $4.95 billion.
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