Herc Rentals‘ revenue soared in the first quarter as it continues to capitalize on large construction projects while improving fleet efficiency and expanding digital offerings.
With its integration of H&E Equipment Services fully completed, Herc’s focus “shifts fully and decisively to leveraging our new scale to drive growth and efficiencies through execution,” Chief Executive Lawrence Silber said during today’s Q1 earnings call.
“With a 30% larger branch network, we are optimizing fleet mix by market, driving network density and capturing the operating efficiencies that come with scale,” he said. “Second, we are enhancing our fleet mix, and specialty solutions is a standout area of focus.”
The equipment rental provider added 25% more specialty locations in Q1 amid construction “mega projects” and the “continued structural shift from equipment ownership to rental,” Silber said.
Further, Herc is working to advance its digital offerings through its mobile app, which includes fleet management tools, service-request capabilities, geofencing and online shopping, Silber said.
BY THE NUMBERS: Bonita Springs, Fla.-based Herc Rentals reported in Q3:
- Total revenue reached $1.1 billion, up 32.3% year over year;
- Equipment rental revenue increased 32.7% YoY to $981 million;
- Sales of rental equipment jumped 31.4% YoY to $138 million;
- Dollar utilization rate was 36.4%, down 1.2 percentage points YoY; and
- A net loss of $24 million, compared with a net loss of $18 million in Q1 2025.
In the second half of 2025, Herc expects its new specialty locations to “more meaningfully contribute to revenue and margin growth.” Silber said.
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