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Mar 31, 2023
H&E Equipment Q1 2023 Earnings Report
H&E Equipment Services reported strong financial performance in Q1 2023, driven by growth initiatives and favorable industry conditions.
Key Takeaways
H&E Equipment Services reported an 18.4% increase in revenue to $322.5 million and a 57.5% increase in net income to $25.7 million in Q1 2023. The company's EBITDA also increased by 35.4% to $140.1 million.
Total revenues increased by 18.4% to $322.5 million compared to the first quarter of 2022.
Net income increased 57.5% to $25.7 million compared to the same period last year.
Total equipment rental revenues increased by 31.5% to $262.0 million.
Used equipment sales increased by 49.2% to $32.1 million, with improved margins.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Revenue by Segment
Equipment Rentals Revenue
CapyFin.comSales of New Equipment Revenue
CapyFin.com Forward Guidance
H&E Equipment Services plans to continue investing in its rental fleet and expanding its branch network in 2023. Gross fleet expenditure in the first quarter totaled approximately $128 million, and the expected full year expenditure remains $500 million to $550 million. The company expects to open as many as six new branches during the second quarter.
Positive Outlook
- Non-residential and industrial backlogs remain strong, leading to an abundance of projects entering various stages of execution.
- Active project environment is expected to support favorable business conditions, including higher physical fleet utilization and modest sequential rental rate improvement as the year proceeds.
- Large private and federally funded construction projects addressing a variety of manufacturing and infrastructure build programs are increasingly apparent across our operating footprint.
- Participation in these opportunities is expected to increase throughout the year.
- Continuing equipment supply imbalance and the likelihood of further improvement in rental penetration represent favorable dynamics that reinforce a positive industry outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income