•
Mar 31, 2024
H&E Equipment Q1 2024 Earnings Report
Reported first quarter results with rental revenues showing double-digit improvement.
Key Takeaways
H&E Equipment Services reported a 15.2% increase in revenues to $371.4 million and a net income of $25.9 million for the first quarter of 2024. Rental revenues grew by 12.8%, and the company's branch network expanded by 17%.
Revenues increased 15.2% to $371.4 million compared to $322.5 million.
Net income totaled $25.9 million compared to $25.7 million.
Total equipment rental revenues were $295.3 million, an increase of 12.7%, compared to $262.0 million.
Sales of rental equipment increased 49.8% to $48.1 million compared to $32.1 million.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Forward Guidance
The company has reduced its 2024 guidance for gross fleet investment to a range of $350 million to $400 million, while maintaining its branch expansion objectives.
Positive Outlook
- Continued escalation of mega projects.
- Expected increase in infrastructure projects.
- Favorable trends in rental penetration.
- Steady growth in construction employment.
- Availability of equipment from manufacturers returning to normal.
Challenges Ahead
- Moderating growth levels in the equipment rental industry.
- Easing in the progression of construction spending.
- Higher for longer interest rate environment.
- Generally tighter lending standards.
- Slower rate of new project starts in early 2024.