Herc Holdings Inc. ( (HRI) ) has released its Q2 earnings. Here is a breakdown of the information Herc Holdings Inc. presented to its investors.
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Herc Holdings Inc., operating through its subsidiary Herc Rentals Inc., is a leading equipment rental supplier in North America, renowned for its comprehensive range of rental solutions and recent strategic acquisitions. The company, headquartered in Bonita Springs, Florida, has reported its financial results for the first half of 2025, highlighting significant developments and financial metrics.
In the second quarter of 2025, Herc Holdings completed the acquisition of H&E Equipment Services, marking a pivotal expansion in its operations. The company reported total revenues of $1,002 million, an 18% increase from the previous year, driven by a 14% rise in equipment rental revenue. However, the quarter also saw a net loss of $35 million, primarily due to acquisition-related costs and losses on assets held for sale.
Key financial metrics for the second quarter include an adjusted EBITDA of $406 million, reflecting a 13% increase from the prior year, with a margin of 41%. Despite the increased revenues, the company faced challenges such as decreased dollar utilization and higher direct operating expenses, attributed to the acquisition and market conditions. The acquisition of H&E is expected to enhance Herc Holdings’ market position by expanding its geographic footprint and customer base.
Looking ahead, Herc Holdings remains focused on integrating and optimizing the H&E acquisition to achieve targeted revenue and cost synergies. The company has updated its full-year 2025 guidance, projecting equipment rental revenue between $3.7 billion and $3.9 billion and adjusted EBITDA in the range of $1.8 billion to $1.9 billion. Herc Holdings aims to capitalize on increased construction spending and its expanded fleet to maintain its industry leadership.