Herc Holdings Reports Mixed Q1 2025 Results

Herc Holdings Inc. ( (HRI) ) has released its Q1 earnings. Here is a breakdown of the information Herc Holdings Inc. presented to its investors.

Herc Holdings Inc., operating through its subsidiary Herc Rentals Inc., is a leading equipment rental supplier in North America, known for its comprehensive range of rental services including aerial, earthmoving, and material handling equipment, among others. The company recently reported its first-quarter 2025 earnings, highlighting a record equipment rental revenue of $739 million, a 3% increase, and total revenues of $861 million, a 7% rise from the previous year. However, the company faced a net loss of $18 million, primarily due to transaction costs related to the H&E acquisition.

Key financial metrics from the first quarter of 2025 include an adjusted EBITDA of $339 million, maintaining the same level as the previous year, and a free cash flow of $49 million. The company experienced a decrease in dollar utilization to 37.6% and an increase in direct operating expenses to $327 million. Despite these challenges, Herc Holdings continues to benefit from its diversified business model, which supports resilience amidst uneven economic trends.

Strategically, Herc Holdings is preparing for the integration of H&E Equipment Services, with the acquisition expected to close mid-year. The company also opened three new greenfield locations and maintained a net debt of $4.0 billion with a net leverage of 2.5x. Looking forward, Herc Holdings affirms its full-year guidance for 2025, anticipating equipment rental revenue growth between 4% to 6% and adjusted EBITDA ranging from $1.575 billion to $1.650 billion.

In conclusion, Herc Holdings remains focused on leveraging its scale and strategic acquisitions to capture a significant share of the projected increase in construction spending for 2025. The company aims to continue optimizing its fleet and capitalizing on growth opportunities, positioning itself to outperform the overall equipment rental market.