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Herc Holdings Inc. (HRI)
NYSE:HRI
Earnings Data
Report Date
Apr 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.39Last Year’s EPS
1.3Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveys a generally positive outlook driven by a large, transformational acquisition, meaningful integration progress, clear synergy targets (cost synergies ahead of plan; revenue synergy targets set), strong Q4 top‑line and adjusted EBITDA growth, healthy free cash flow generation, and a disciplined capital plan with 2026 guidance for profitable growth. Near‑term challenges include margin pressure from elevated used equipment sales, seasonality and pro forma utilization weakness in Q1, elevated pro forma leverage (3.95x), and execution risk on capturing revenue synergies—all acknowledged and being actively managed. Overall, the positives (integration execution, synergy progress, digital/telemetry adoption, cash flow and guidance) outweigh the short‑term headwinds.Company Guidance
Transformational Acquisition and Integration Progress
Completed largest industry acquisition (H&E) in June 2025 and executed rapid integration actions: expanded field operating structure to 10 U.S. regions, completed sales territory optimization, and transitioned acquired branches to Herc’s technology stack. Branch optimization is 80% complete and expected to finish next month; plan increases stand‑alone or co‑located specialty branches by ~25% and adds 50+ specialty locations.
Strong Top‑line Growth in Q4
GAAP equipment rental revenue increased 24% year over year in Q4 2025, driven by the H&E acquisition, mega project contributions, and specialty solutions sales.
Adjusted EBITDA and REBITDA Expansion
Adjusted EBITDA rose 19% year over year in Q4; REBITDA (excluding used equipment sales) increased 17% in Q4. Company is guiding adjusted EBITDA of $2.0B–$2.1B for 2026 (10%–16% growth).
Material Cost Synergy Progress
Cost synergies are tracking ahead of plan with management expecting $125,000,000 of cost synergies recognized in 2026, supporting REBITDA margin improvement.
Revenue Synergy Targets Established
Maintained long‑term revenue synergy target of ~$390,000,000 through 2028 and forecasting incremental revenue synergies of $100,000,000–$120,000,000 for 2026.
Capital and Fleet Actions
Full‑year 2025 fleet expenditures were flat year over year while disposals increased 67% (full‑year). Q4 disposals totaled $342,000,000 with realized proceeds equal to 44% of OEC (up from 41% in Q3). 2026 guidance: gross CapEx midpoint ~$950,000,000 and net CapEx midpoint ~$650,000,000; fleet plan aims for 13%–17% rental revenue growth in 2026.
Free Cash Flow and Leverage Trajectory
Generated $521,000,000 of free cash flow in 2025 net of transaction costs. Pro forma leverage is 3.95x (in line with expectations) with a plan to return to the top of target range (2x–3x) by year‑end 2027. 2026 free cash flow guidance: $400,000,000–$600,000,000.
Digital, Telematics and Productivity Gains
Digital revenue grew by more than 50% in 2025 (hercrentals.com). Approximately 80% of eligible gear is telematics‑equipped. On a pro forma basis, employee productivity increased year over year and adoption of CRM/sales systems is beginning to translate into early cross‑selling wins.
Safety and Operational Discipline
Onboarded 2,500 new team members into Herc’s health & safety program in H2 2025. Branch‑by‑branch measurement achieved over 97% of 'perfect days' and total recordable incident rate remains better than industry benchmark of 1.0.
Specialty Momentum and Mega Project Exposure
Expanded specialty footprint from ~150 to ~200 locations (25% increase in stand‑alone/co‑located specialty branches). Specialty lines generated double‑digit rental revenue growth in December. Company reports winning targeted 10%–15% share of mega project opportunities and expects continued robust mega project activity (manufacturing, LNG, renewables, data centers).
Q4 Net Income (Adjusted) and EPS
Adjusted net income for Q4 was $69,000,000, or $2.07 per share (adjusted basis).
HRI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HRI Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 17, 2026 | $172.31 | $149.42 | -13.29% |
Oct 28, 2025 | $132.06 | $137.37 | +4.02% |
Jul 29, 2025 | $147.63 | $121.75 | -17.53% |
Apr 22, 2025 | $109.23 | $100.25 | -8.21% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Herc Holdings Inc. (HRI) report earnings?
Herc Holdings Inc. (HRI) is schdueled to report earning on Apr 16, 2026, Before Open (Confirmed).
What is Herc Holdings Inc. (HRI) earnings time?
Herc Holdings Inc. (HRI) earnings time is at Apr 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HRI EPS forecast?
HRI EPS forecast for the fiscal quarter 2026 (Q1) is 0.39.