Equipment rental houses Herc Rentals and United Rentals capitalized on surging demand in 2024 and made several plays in the mergers-and-acquisitions space.
The companies reported higher revenue last year as high interest rates and volatile used-equipment prices hindered machinery purchasing. The hot rental market continues to generate cash flow for large rental houses and equipment dealers alike, attracting lenders as well.
Herc
Bonita Springs, Fla.-based Herc Rentals’ rental revenue soared 11.1% year over year to a record $3.2 billion in 2024, according to its earnings statement released today.
Total revenue also reached a record $3.6 billion, up 8.7% from 2023. Herc’s dollar utilization rate rose 10 basis points YoY to 40.9% at yearend.
Acquisitions helped accelerate the company’s growth in 2024, a strategy it plans to continue in 2024, President and Chief Executive Lawrence Silber said during today’s earnings call.
“We opened 23 greenfield branches in 2024, and through nine acquisitions we added 28 more locations. Together, these will drive market share and revenue efficiencies in key metropolitan areas in line with our urban market growth strategy. … We’ll continue our strategy to build density in the top 100 geographic markets through greenfield and strategic acquisitions.”
— Herc Rentals CEO Lawrence Silber
The company in 2024 also benefited from large-scale construction projects, including data center and infrastructure developments, which are expected to ramp up in 2025, Chief Operating Officer Aaron Birnbaum said during the call.
“We continue to win our targeted 10% to 15% share of the project opportunities with several new mega projects on deck this year and the 2024 projects still ramping up,” he said.
United Rentals
Meanwhile, Stamford, Conn.-based United Rentals earned $13 billion in rental revenue in 2024, up 8.7% YoY, according to its Jan. 29 earnings statement.
Total revenue increased 7.1% YoY to $15.3 billion, despite rental equipment sales falling 3.4% YoY to $1.5 billion. The company’s fleet productivity, which measures the impact of changes in rental rates, time utilization and mix on owned equipment rental revenue, rose 4.1% from 2023.
United Rentals also took advantage of large commercial construction projects and businesses’ preference to rent used equipment instead of buying, President and CEO Matthew Flannery said during the company’s earnings call.
“The depth and health of demand in the used market is allowing us to rotate our existing fleet to ensure we can serve our customers’ needs efficiently.”
— United Rentals CEO Matthew Flannery
“This is evident through our full-year CapEx of over $3.7 billion,” he said. “And as a result, we drove free cash flow of nearly $2.1 billion which translated to a very healthy free cash flow margin of over 13%.”
United Rentals turned heads in January when it struck a deal to acquire H&E Equipment Services for nearly $5 billion, allowing the company to “better serve customer demand over the long term,” Flannery said.
“It will also accelerate our growth, all while generating compelling returns for our shareholders,” he said.
The third annual Equipment Finance Connect at the JW Marriott Nashville on May 14-15, 2025, is the only event for both equipment dealers and finance providers. Learn more and register here.
