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Business Wire
29-07-2025
- Business
- Business Wire
Herc Holdings Reports First Half 2025 Results and Updates 2025 Full Year Guidance
BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2025. 'The second quarter marked an important milestone for our company. On June 2nd, we completed the transaction to bring Herc Rentals and H&E Equipment Services together. This acquisition, the largest in the industry, will accelerate our strategy to deliver market leading growth and superior value creation by providing geographic and customer diversification, a substantially expanded footprint in key regions with economies of scale, and a larger fleet to strengthen our position as a premier rental company in North America,' said Larry Silber, president and chief executive officer. 'With the merger now behind us, our focus is on integration, optimization and ensuring delivery of the revenue and cost synergy targets we established. It has been only about 8 weeks since the close and I am pleased with the go-to-market collaboration, fleet sharing, and process alignment. The teams are working very well together, united in their shared commitment to our customers' success and energized by the unique opportunity that our combined strengths represent.' 'While integration is off to a great start, of course there is a lot of work ahead. H&E's performance was impacted by disruptions to the employee base during the acquisition bidding process and through the closing. Since taking over, we have stabilized that, but dis-synergies had already resulted. Those, combined with the continued moderation in the interest-rate sensitive commercial sector are factored into our new, combined outlook for 2025, which also incorporates offsetting strength in mega project activity and ongoing growth in our specialty solutions business.' 2025 Second Quarter Financial Results Total revenues increased 18% to $1,002 million compared to $848 million in the prior-year period. This year-over-year increase was driven by a 14% increase in equipment rental revenue, which includes the impact of second half 2024 acquisitions and the June 2025 results of H&E. Sales of rental equipment increased by $41 million during the period. Dollar utilization decreased to 38.3% in the second quarter compared to 41.0% in the prior-year period, primarily reflecting the impact from the H&E acquisition and year-over-year decline of the Cinelease business. Direct operating expenses were $379 million, or 43.6% of equipment rental revenue, compared to $326 million, or 42.6% in the prior-year period. The increase as a percent of rental revenue related to lower fixed cost absorption due to the ongoing moderation in certain local markets. Depreciation of rental equipment increased 18% to $195 million due to higher year-over-year average fleet size primarily as a result of the H&E acquisition. Non-rental depreciation and amortization increased 50% to $45 million primarily due to amortization of intangible assets related to the H&E and Otay acquisitions and an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $127 million, or 14.6% of equipment rental revenue compared to $117 million, or 15.3% of equipment rental revenue in the prior-year period. The improvement as a percent of equipment rental revenue was related to initial cost synergies obtained through reduction of H&E corporate overhead as well as overall cost control measures introduced to mitigate the impact of ongoing moderation in certain local markets. Transaction expenses were $73 million compared to $3 million in the prior-year period. The increase is related to costs incurred for the H&E acquisition, primarily advisory fees of $27 million, commitment fees related to the bridge facility of $21 million and various other consulting and legal fees. Interest expense increased to $86 million compared with $63 million in the prior-year period due to new debt facilities issued in June 2025 to fund the H&E acquisition. Loss on assets held for sale was $49 million during the second quarter of 2025 to adjust the carrying value of Cinelease net assets to its fair value less estimated costs to sell. Net loss was $35 million compared to net income of $70 million in the prior-year period. Adjusted net income decreased 24% to $56 million, or $1.87 per diluted share, compared to $74 million, or $2.60 per diluted share, in the prior-year period. The income tax benefit in the second quarter was primarily driven by the non-deductible transaction costs related to the H&E acquisition. Adjusted EBITDA increased 13% to $406 million compared to $360 million in the prior-year period and adjusted EBITDA margin was 40.5% compared to 42.5% in the prior-year period. The decrease was primarily due to the increased volume of lower margin sales of used equipment and the impact of the H&E acquisition. 2025 First Half Financial Results Total revenues increased 13% to $1,863 million compared to $1,652 million in the prior-year period. The year-over-year increase was driven by a 8% increase in equipment rental revenue, which includes the impact of second half 2024 acquisitions and the June 2025 results of H&E. Sales of rental equipment increased by $77 million during the period. Dollar utilization decreased to 38.0% compared to 40.4% in the prior-year period, primarily reflecting the impact from the H&E acquisition and year-over-year decline of the Cinelease business. Direct operating expenses were $706 million, or 43.9% of equipment rental revenue, compared to $633 million, or 42.7%, in the prior-year period. The increase as a percent of rental revenue related to lower fixed cost absorption due to the ongoing moderation in certain local markets. Depreciation of rental equipment increased 13% to $367 million due to higher year-over-year average fleet size, primarily as a result of the H&E acquisition. Non-rental depreciation and amortization increased 32% to $78 million, primarily due to amortization of intangible assets related to the H&E and Otay acquisitions and an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $245 million, or 15.2% of equipment rental revenue, compared to $229 million, or 15.4% of equipment rental revenue, in the prior-year period. The improvement as a percent of equipment rental revenue was related to initial cost synergies obtained through reduction of H&E corporate overhead as well as overall cost control measures introduced to mitigate the impact of ongoing moderation in certain local markets. Transaction expenses were $147 million compared to $6 million in the prior-year period. The increase related to costs incurred for the H&E acquisition, primarily a $64 million termination fee paid on behalf of H&E, advisory fees of $27 million, commitment fees related to the bridge facility of $21 million and various other consulting and legal fees. Interest expense increased to $148 million compared with $124 million in the prior-year period due to new debt facilities issued in June 2025 to fund the H&E acquisition. Loss on assets held for sale was $49 million during the first half of 2025 to adjust the carrying value of Cinelease net assets to its fair value less estimated costs to sell. Net loss was $53 million compared to net income of $135 million in the prior-year period. Adjusted net income decreased 34% to $93 million, or $3.17 per diluted share, compared to $141 million, or $4.96 per diluted share, in the prior-year period. The income tax benefit in the first half was primarily driven by the level of pre-tax loss offset by non-deductible transaction costs related to the H&E acquisition. Adjusted EBITDA increased 7% to $745 million compared to $699 million in the prior-year period and adjusted EBITDA margin was 40.0% compared to 42.3% in the prior-year period, primarily due to the increased volume of lower margin sales of used equipment and the impact of the H&E acquisition. Rental Fleet Net rental equipment capital expenditures were as follows (in millions): Six Months Ended June 30, 2025 2024 Rental equipment expenditures $ 421 $ 468 Proceeds from disposal of rental equipment (183 ) (125 ) Net rental equipment capital expenditures $ 238 $ 343 Expand As of June 30, 2025, the Company's total fleet was approximately $9.9 billion at OEC. Average fleet at OEC in the second quarter increased 21% compared to the prior-year period. Average fleet age was 46 months and 47 months at June 30, 2025 and 2024, respectively. Disciplined Capital Management The Company opened 11 new greenfield locations during the six months ended June 30, 2025. Net debt was $8.3 billion as of June 30, 2025, with net leverage of 3.8x1 compared to 2.6x in the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately $1.6 billion of liquidity as of June 30, 2025. The Company declared its quarterly dividend of $0.70 paid to shareholders of record as of May 30, 2025 on June 13, 2025. (1) Current period net leverage is calculated using pro forma trailing twelve month adjusted EBITDA including the standalone, pre-acquisition results of H&E. Expand 2025 Outlook—Excluding Cinelease The Company is updating its full year 2025 equipment rental revenue, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges, excluding Cinelease studio entertainment and lighting and grip equipment rental business. Equipment rental revenue: $3.7 billion to $3.9 billion Adjusted EBITDA: $1.8 billion to $1.9 billion Net rental equipment capital expenditures: $400 million to $600 million Gross capex: $900 million to $1.1 billion Expand As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2025 by investing in its fleet, optimizing its existing fleet, capitalizing on recent acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio. Earnings Call and Webcast Information Herc Holdings' second quarter 2025 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at using the access code: 9128891. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company. Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at The press release and presentation slides for the call will be posted to this section of the website prior to the call. A replay of the conference call will be available via webcast on the Company website at where it will be archived for 12 months after the call. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier and, with the recent acquisition of H&E Equipment Services, we have 622 locations across North America and 2024 pro forma total revenues were approximately $5.1 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Our ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shorting equipment as well as our ProContractor professional grade tools. We employ approximately 10,200 employees, who equip our customers and communities to build a brighter future. Learn more at and follow us on Instagram, Facebook and LinkedIn. Certain Additional Information In this release we refer to the following operating measures: Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA). OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to integrate the acquisition of H&E Equipment Services, Inc. into our business and our ability to realize the anticipated benefits of the transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Information Regarding Non-GAAP Financial Measures In addition to results calculated according to accounting principles generally accepted in the United States ('GAAP'), the Company has provided certain information in this release that is not calculated according to GAAP ('non-GAAP'), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share, free cash flow, adjusted free cash flow and certain results excluding the Cinelease studio entertainment business. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company's performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management's use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release. (See Accompanying Tables) HERC HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Equipment rental $ 870 $ 765 $ 1,609 $ 1,484 Sales of rental equipment 106 65 211 134 Sales of new equipment, parts and supplies 17 10 28 19 Service and other revenue 9 8 15 15 Total revenues 1,002 848 1,863 1,652 Expenses: Direct operating 379 326 706 633 Depreciation of rental equipment 195 165 367 325 Cost of sales of rental equipment 86 45 162 91 Cost of sales of new equipment, parts and supplies 10 6 18 12 Selling, general and administrative 127 117 245 229 Transaction expenses 73 3 147 6 Non-rental depreciation and amortization 45 30 78 59 Interest expense, net 86 63 148 124 Loss on assets held for sale 49 — 49 — Other expense (income), net (2 ) — (3 ) (1 ) Total expenses 1,048 755 1,917 1,478 Income (loss) before income taxes (46 ) 93 (54 ) 174 Income tax benefit (provision) 11 (23 ) 1 (39 ) Net income (loss) $ (35 ) $ 70 $ (53 ) $ 135 Weighted average shares outstanding: Basic 30.0 28.4 29.2 28.3 Diluted 30.0 28.5 29.2 28.4 Earnings (loss) per share: Basic $ (1.17 ) $ 2.46 $ (1.82 ) $ 4.77 Diluted $ (1.17 ) $ 2.46 $ (1.82 ) $ 4.75 A - 1 Expand HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) June 30, 2025 December 31, 2024 ASSETS (unaudited) Cash and cash equivalents $ 53 $ 83 Receivables, net of allowances 778 589 Prepaid expenses 63 47 Other current assets 26 40 Current assets held for sale 23 17 Total current assets 943 776 Rental equipment, net 6,015 4,225 Property and equipment, net 865 554 Right-of-use lease assets 1,475 852 Intangible assets, net 1,622 572 Goodwill 2,901 670 Other long-term assets 17 8 Long-term assets held for sale 180 220 Total assets $ 14,018 $ 7,877 LIABILITIES AND EQUITY Current maturities of long-term debt and financing obligations $ 28 $ 21 Current maturities of operating lease liabilities 55 39 Accounts payable 325 248 Accrued liabilities 391 239 Current liabilities held for sale 19 15 Total current liabilities 818 562 Long-term debt, net 8,251 4,069 Financing obligations, net 98 101 Operating lease liabilities 1,454 842 Deferred tax liabilities 1,377 800 Other long-term liabilities 53 47 Long-term liabilities held for sale 56 60 Total liabilities 12,107 6,481 Total equity 1,911 1,396 Total liabilities and equity $ 14,018 $ 7,877 A - 2 Expand HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In millions) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (53 ) $ 135 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation of rental equipment 367 325 Depreciation of property and equipment 47 39 Amortization of intangible assets 31 20 Amortization of deferred debt and financing obligations costs 3 2 Stock-based compensation charges 12 9 Provision for receivables allowances 31 28 Loss on assets held for sale 49 — Deferred taxes (58 ) 20 Gain on sale of rental equipment (49 ) (43 ) Other 5 6 Changes in assets and liabilities, net of effects from acquisitions: Receivables 3 (22 ) Other assets (14 ) 9 Accounts payable (6 ) 13 Accrued liabilities and other long-term liabilities 44 17 Net cash provided by operating activities 412 558 Cash flows from investing activities: Rental equipment expenditures (421 ) (468 ) Proceeds from disposal of rental equipment 183 125 Non-rental capital expenditures (80 ) (71 ) Proceeds from disposal of property and equipment 9 4 Acquisitions, net of cash acquired (4,251 ) (290 ) Net cash used in investing activities (4,560 ) (700 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 3,467 800 Proceeds from revolving lines of credit and securitization 3,361 840 Repayments on revolving lines of credit and securitization (2,645 ) (1,433 ) Principal payments under finance lease and financing obligations (10 ) (10 ) Dividends paid (41 ) (39 ) Other financing activities, net (14 ) (17 ) Net cash provided by financing activities 4,118 141 Effect of foreign exchange rate changes on cash and cash equivalents — — Net change in cash and cash equivalents during the period (30 ) (1 ) Cash and cash equivalents at beginning of period 83 71 Cash and cash equivalents at end of period $ 53 $ 70 A - 3 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES EBITDA AND ADJUSTED EBITDA RECONCILIATIONS Unaudited (In millions) EBITDA and adjusted EBITDA - EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction related costs, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments. Adjusted EBITDA Margin - Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ (35 ) $ 70 $ (53 ) $ 135 Income tax provision (benefit) (11 ) 23 (1 ) 39 Interest expense, net 86 63 148 124 Depreciation of rental equipment 195 165 367 325 Non-rental depreciation and amortization 45 30 78 59 EBITDA 280 351 539 682 Non-cash stock-based compensation charges 5 4 11 9 Transaction related costs 73 3 147 6 Loss on assets held for sale 49 — 49 — Other(1) (1 ) 2 (1 ) 2 Adjusted EBITDA $ 406 $ 360 $ 745 $ 699 Total revenues 1,002 848 1,863 1,652 Adjusted EBITDA $ 406 $ 360 $ 745 $ 699 Adjusted EBITDA margin 40.5 % 42.5 % 40.0 % 42.3 % (1) Other consists of restructuring charges and spin-off costs. A - 4 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES EBITDA, ADJUSTED EBITDA AND ADJUSTED REBITDA EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS Unaudited (in millions) EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business. Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Herc Studio Ex-Studio Herc Studio Ex-Studio Equipment rental revenue $ 870 $ 16 $ 854 $ 765 $ 26 $ 739 Total revenues 1,002 18 984 848 29 819 Total expenses 1,048 66 982 755 21 734 Income (loss) before income taxes (46 ) (48 ) 2 93 8 85 Income tax (provision) benefit 11 12 (1 ) (23 ) (4 ) (19 ) Net income (loss) (35 ) (36 ) 1 70 4 66 Income tax provision (11 ) (12 ) 1 23 4 19 Interest expense, net 86 — 86 63 — 63 Depreciation of rental equipment 195 — 195 165 — 165 Non-rental depreciation and amortization 45 — 45 30 — 30 EBITDA 280 (48 ) 328 351 8 343 Non-cash stock-based compensation charges 5 — 5 4 — 4 Transaction related costs 73 1 72 3 — 3 Loss on assets held for sale 49 49 — — — — Other (1 ) (1 ) — 2 — 2 Adjusted EBITDA 406 1 405 360 8 352 Less: Gain (loss) on sales of rental equipment 20 (1 ) 21 20 1 19 Less: Gain (loss) on sales of new equipment, parts and supplies 7 1 6 4 1 3 Rental Adjusted EBITDA (REBITDA) $ 379 $ 1 $ 378 $ 336 $ 6 $ 330 Total revenues $ 1,002 $ 18 $ 984 $ 848 $ 29 $ 819 Adjusted EBITDA $ 406 $ 1 $ 405 $ 360 $ 8 $ 352 Adjusted EBITDA margin 40.5 % 5.6 % 41.2 % 42.5 % 27.6 % 43.0 % Total revenues $ 1,002 $ 18 $ 984 $ 848 $ 29 $ 819 Less: Sales of rental equipment 106 (1 ) 107 65 — 65 Less: Sales of new equipment, parts and supplies 17 1 16 10 2 8 Equipment rental, service and other revenues $ 879 $ 18 $ 861 $ 773 $ 27 $ 746 Equipment rental, service and other revenues $ 879 $ 18 $ 861 $ 773 $ 27 $ 746 Adjusted REBITDA $ 379 $ 1 $ 378 $ 336 $ 6 $ 330 Adjusted REBITDA margin 43.1 % 5.6 % 43.9 % 43.5 % 22.2 % 44.2 % A - 5 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES EBITDA, ADJUSTED EBITDA AND ADJUSTED REBITDA EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS Unaudited (In millions) EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business. Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Herc Studio Ex-Studio Herc Studio Ex-Studio Equipment rental revenue $ 1,609 $ 31 $ 1,578 $ 1,484 $ 55 $ 1,429 Total revenues 1,863 35 1,828 1,652 59 1,593 Total expenses 1,917 83 1,834 1,478 42 1,436 Income (loss) before income taxes (54 ) (48 ) (6 ) 174 17 157 Income tax (provision) benefit 1 12 (11 ) (39 ) (6 ) (33 ) Net income (loss) (53 ) (36 ) (17 ) 135 11 124 Income tax provision (1 ) (12 ) 11 39 6 33 Interest expense, net 148 — 148 124 — 124 Depreciation of rental equipment 367 — 367 325 — 325 Non-rental depreciation and amortization 78 — 78 59 — 59 EBITDA 539 (48 ) 587 682 17 665 Non-cash stock-based compensation charges 11 — 11 9 — 9 Transaction related costs 147 2 145 6 1 5 Loss on assets held for sale 49 49 — — — — Other (1 ) (1 ) — 2 — 2 Adjusted EBITDA 745 2 743 699 18 681 Less: Gain (loss) on sales of rental equipment 49 — 49 43 1 42 Less: Gain (loss) on sales of new equipment, parts and supplies 10 1 9 7 2 5 Rental Adjusted EBITDA (REBITDA) $ 686 $ 1 $ 685 $ 649 $ 15 $ 634 Total revenues $ 1,863 $ 35 $ 1,828 $ 1,652 $ 59 $ 1,593 Adjusted EBITDA $ 745 $ 2 $ 743 $ 699 $ 18 $ 681 Adjusted EBITDA margin 40.0 % 5.7 % 40.6 % 42.3 % 30.5 % 42.7 % Total revenues $ 1,863 $ 35 $ 1,828 $ 1,652 $ 59 $ 1,593 Less: Sales of rental equipment 211 — 211 134 — 134 Less: Sales of new equipment, parts and supplies 28 2 26 19 3 16 Equipment rental, service and other revenues $ 1,624 $ 33 $ 1,591 $ 1,499 $ 56 $ 1,443 Equipment rental, service and other revenues $ 1,624 $ 33 $ 1,591 $ 1,499 $ 56 $ 1,443 Adjusted REBITDA $ 686 $ 1 $ 685 $ 649 $ 15 $ 634 Adjusted REBITDA Margin 42.2 % 3.0 % 43.1 % 43.3 % 26.8 % 43.9 % A - 6 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE Unaudited (In millions) Adjusted Net Income and Adjusted Earnings Per Diluted Share - Adjusted Net Income represents the sum of net income (loss), restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, transaction related costs, gain (loss) on the disposal of a business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ (35 ) $ 70 $ (53 ) $ 135 Transaction related costs 73 3 147 6 Loss on assets held for sale 49 — 49 — Other(1) (1 ) 2 (1 ) 2 Tax impact of adjustments(2) (30 ) (1 ) (49 ) (2 ) Adjusted net income $ 56 $ 74 $ 93 $ 141 Diluted shares outstanding 30.0 28.5 29.3 28.4 Adjusted earnings per diluted share $ 1.87 $ 2.60 $ 3.17 $ 4.96 (1) Other consists of restructuring charges and spin-off costs. (2) The tax rate applied for adjustments is 25.0% in the three and six months ended June 30, 2025 and 25.5% in the three and six months ended June 30, 2024 and reflects the statutory rates in the applicable entities. A - 7 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES FREE CASH FLOW Unaudited (In millions) Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company's ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures. Six Months Ended June 30, 2025 2024 Net cash provided by operating activities $ 412 $ 558 Rental equipment expenditures (421 ) (468 ) Proceeds from disposal of rental equipment 183 125 Net rental equipment expenditures (238 ) (343 ) Non-rental capital expenditures (80 ) (71 ) Proceeds from disposal of property and equipment 9 4 Free cash flow $ 103 $ 148 Acquisitions, net of cash acquired (4,251 ) (290 ) Decrease (increase) in net debt, excluding financing activities $ (4,148 ) $ (142 ) A - 8 Expand
Yahoo
25-06-2025
- Business
- Yahoo
Herc Holdings (HRI) Gains Scale in Equipment Rentals After H&E Acquisition
Herc Holdings Inc. (NYSE:HRI) is one of the 10 most undervalued industrial stocks to buy according to analysts. On June 2, 2025, Herc completed its acquisition of H&E Equipment Services, a transaction that significantly strengthens its position in the equipment rental industry. Initially proposed in February, the deal offered H&E shareholders $78.75 in cash and 0.1287 shares of Herc stock per H&E share, valuing the offer at $104.89, and representing a 14% premium over a competing bid from United Rentals. H&E's board ultimately backed Herc's proposal, and following the completion, its shareholders now hold roughly 14% of the combined company. A construction crew working in the field with earthmoving equipment illuminated by a setting sun. The acquisition adds scale and reach to Herc's operations, positioning it in 11 of the top 20 U.S. rental markets. It also broadens its fleet, strengthens its specialty and general equipment offerings, and brings in a skilled workforce aligned with Herc's customer-focused culture. CEO Larry Silber noted that the deal sets the stage for accelerated growth and stronger long-term value creation. Reflecting confidence in Herc's outlook, Barclays analyst Adam Seiden reiterated a Buy rating on the stock on June 10, maintaining a $160 price target, among the highest on the street. Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with a fleet that includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. While we acknowledge the potential of HRI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
02-06-2025
- Business
- Associated Press
Herc Holdings Completes Acquisition of H&E Equipment Services
BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Jun 2, 2025-- Herc Holdings Inc. (NYSE: HRI) ('Herc' or 'the Company'), one of North America's leading equipment rental suppliers, today announced that it has completed its acquisition of H&E Equipment Services, Inc. d/b/a H&E Rentals ('H&E'). 'The acquisition of H&E accelerates Herc's proven strategy and strengthens our position as a premier rental company in North America,' said Larry Silber, Herc Rentals' president and chief executive officer. 'The addition of H&E's network and capabilities provides Herc with a leading presence in 11 of the top 20 rental regions, a larger fleet that provides our customers with a range of specialty and general rental products, and a talented team who shares our focus on excellence in customer service and safety. We are excited to realize the substantial upside ahead for industry leading growth and superior value creation.' Under the terms of the merger agreement, Herc Rentals acquired all of the issued and outstanding shares of H&E's common stock for, on a per share basis, $78.75 in cash and 0.1287 shares of Herc Rentals common stock. With the completion of the transaction, shares of H&E common stock have ceased trading and will no longer be listed on the NASDAQ. Herc Rentals Advisors Guggenheim Securities, LLC served as lead financial advisor. Credit Agricole Securities (USA) Inc served as co-financial advisor, and Credit Agricole Corporate and Investment Bank served as lead financing bank. Simpson Thacher & Bartlett LLP served as legal advisor. Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier. With the recent acquisition of H&E Equipment Services, we have 613 locations across North America and pro forma 2024 total revenues were $5.1 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Our ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our ProContractor professional grade tools. We employ approximately 10,500 employees, who equip our customers and communities to build a brighter future. Learn more at and follow us on Instagram, Facebook and LinkedIn. Cautionary Note Regarding Forward Looking Statements This communication includes 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act, as amended. Forward-looking statements include statements related to the Company, H&E and the acquisition of H&E by the Company that involve substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this communication include, among other things, statements about the potential benefits of the transaction, the Company's plans, objectives, expectations and intentions, the financial condition, results of operations and business of each of the Company and H&E, and expected valuation and re-rating opportunities for the combined company. Forward-looking statements are generally identified by the words 'estimates,' 'expects,' 'anticipates,' 'projects,' 'plans,' 'intends,' 'believes,' 'forecasts,' 'looks,' and future or conditional verbs, such as 'will,' 'should,' 'could' or 'may,' as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date of this communication. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will be achieved or that the completion and anticipated benefits of the transaction can be guaranteed, and actual results may differ materially from those projected. You should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those suggested by our forward-looking statements, including, but not limited to, (i) the Company's ability to implement its plans, forecasts and other expectations with respect to H&E's business after the completion of the transaction and realized expected synergies; (ii) the ability to realize the anticipated benefits of the transaction, including the possibility that the expected benefits from the transaction will not be realized or will not be realized within the expected time period; (iii) problems may arise in successfully integrating the businesses of the Company and H&E, including, without limitation, problems associated with the potential loss of any key employees, customers, suppliers and other counterparties of H&E (iv) the transaction may involve unexpected costs, including, without limitation, the exposure to any unrecorded liabilities or unidentified issues during the due diligence investigation of H&E or that are not covered by insurance, as well as potential unfavorable accounting treatment and unexpected increases in taxes; (v) the Company's business may suffer as a result of uncertainty surrounding the transaction, including any adverse effects on our ability to maintain relationships with customers, employees and suppliers; (vi) any negative effects of the announcement of the transaction or the financing thereof on the market price of the Company common stock or other securities; (vii) the industry may be subject to future risks including those set forth in the 'Risk Factors' section in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and in the other filings with the SEC by each of the Company and H&E and (viii) the Company may not achieve its valuation or re-rating opportunities. The foregoing list of factors is not exhaustive. Investors should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of the Company and H&E, including those described in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the other filings with the SEC by each of the Company and H&E. All forward-looking statements are expressly qualified in their entirety by such cautionary statements. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. View source version on CONTACT: Leslie Hunziker Senior Vice President Investor Relations, Communications & Sustainability [email protected] 239-301-1675Joele Frank, Wilkinson Brimmer Katcher [email protected] T.J. O'Sullivan / 415-378-6841 Maggie Carangelo / 917-865-2500 KEYWORD: FLORIDA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE MANUFACTURING COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY MACHINERY SOURCE: Herc Holdings Inc. Copyright Business Wire 2025. PUB: 06/02/2025 08:50 AM/DISC: 06/02/2025 08:48 AM
Business Wire
02-06-2025
- Business
- Business Wire
Herc Holdings Completes Acquisition of H&E Equipment Services
BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ('Herc' or 'the Company'), one of North America's leading equipment rental suppliers, today announced that it has completed its acquisition of H&E Equipment Services, Inc. d/b/a H&E Rentals ('H&E'). 'The acquisition of H&E accelerates Herc's proven strategy and strengthens our position as a premier rental company in North America,' said Larry Silber, Herc Rentals' president and chief executive officer. 'The addition of H&E's network and capabilities provides Herc with a leading presence in 11 of the top 20 rental regions, a larger fleet that provides our customers with a range of specialty and general rental products, and a talented team who shares our focus on excellence in customer service and safety. We are excited to realize the substantial upside ahead for industry leading growth and superior value creation.' Under the terms of the merger agreement, Herc Rentals acquired all of the issued and outstanding shares of H&E's common stock for, on a per share basis, $78.75 in cash and 0.1287 shares of Herc Rentals common stock. With the completion of the transaction, shares of H&E common stock have ceased trading and will no longer be listed on the NASDAQ. Herc Rentals Advisors Guggenheim Securities, LLC served as lead financial advisor. Credit Agricole Securities (USA) Inc served as co-financial advisor, and Credit Agricole Corporate and Investment Bank served as lead financing bank. Simpson Thacher & Bartlett LLP served as legal advisor. Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier. With the recent acquisition of H&E Equipment Services, we have 613 locations across North America and pro forma 2024 total revenues were $5.1 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Our ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our ProContractor professional grade tools. We employ approximately 10,500 employees, who equip our customers and communities to build a brighter future. Learn more at and follow us on Instagram, Facebook and LinkedIn. Cautionary Note Regarding Forward Looking Statements This communication includes 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act, as amended. Forward-looking statements include statements related to the Company, H&E and the acquisition of H&E by the Company that involve substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this communication include, among other things, statements about the potential benefits of the transaction, the Company's plans, objectives, expectations and intentions, the financial condition, results of operations and business of each of the Company and H&E, and expected valuation and re-rating opportunities for the combined company. Forward-looking statements are generally identified by the words 'estimates,' 'expects,' 'anticipates,' 'projects,' 'plans,' 'intends,' 'believes,' 'forecasts,' 'looks,' and future or conditional verbs, such as 'will,' 'should,' 'could' or 'may,' as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date of this communication. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will be achieved or that the completion and anticipated benefits of the transaction can be guaranteed, and actual results may differ materially from those projected. You should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those suggested by our forward-looking statements, including, but not limited to, (i) the Company's ability to implement its plans, forecasts and other expectations with respect to H&E's business after the completion of the transaction and realized expected synergies; (ii) the ability to realize the anticipated benefits of the transaction, including the possibility that the expected benefits from the transaction will not be realized or will not be realized within the expected time period; (iii) problems may arise in successfully integrating the businesses of the Company and H&E, including, without limitation, problems associated with the potential loss of any key employees, customers, suppliers and other counterparties of H&E (iv) the transaction may involve unexpected costs, including, without limitation, the exposure to any unrecorded liabilities or unidentified issues during the due diligence investigation of H&E or that are not covered by insurance, as well as potential unfavorable accounting treatment and unexpected increases in taxes; (v) the Company's business may suffer as a result of uncertainty surrounding the transaction, including any adverse effects on our ability to maintain relationships with customers, employees and suppliers; (vi) any negative effects of the announcement of the transaction or the financing thereof on the market price of the Company common stock or other securities; (vii) the industry may be subject to future risks including those set forth in the 'Risk Factors' section in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and in the other filings with the SEC by each of the Company and H&E and (viii) the Company may not achieve its valuation or re-rating opportunities. The foregoing list of factors is not exhaustive. Investors should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of the Company and H&E, including those described in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in the other filings with the SEC by each of the Company and H&E. All forward-looking statements are expressly qualified in their entirety by such cautionary statements. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
Yahoo
31-05-2025
- Business
- Yahoo
Herc Holdings, H&E Equipment announce expiration of tender offer
Herc Holdings (HRI) and H&E Equipment Services, Inc. d/b/a H&E Rentals (HEES) announced the expiration of the tender offer to exchange each outstanding share of H&E common stock for $78.75 in cash and 0.1287 shares of Herc common stock, in each case without interest, pursuant to the terms of the previously announced merger agreement, dated February 19, 2025, between Herc, HR Merger Sub and H&E. The Offer, which was extended on May 23, 2025, expired at one minute past 11:59 p.m. Eastern Time on May 29, 2025. The Depository and Paying Agent for the Offer has advised Herc that as of the expiration of the Offer, a total of 25,369,090 H&E Shares were validly tendered and not validly withdrawn in the Offer, representing approximately 69.33% of the outstanding H&E Shares. As of such expiration, all conditions to the Offer have been satisfied or waived and Merger Sub has accepted for payment all H&E Shares validly tendered and not validly withdrawn in accordance with the terms of the Offer. Herc, Merger Sub and H&E currently expect to close the acquisition on June 2, 2025. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on HRI: Disclaimer & DisclosureReport an Issue Herc Holdings extends tender offer to acquire H&E Equipment Herc Holdings Grants Retention Awards to COO Herc Holdings Announces Private Offering for Acquisition Herc announces expiration of HSR Act waiting period for H&E Equipment deal Herc Holdings Announces Acquisition of H&E Equipment
