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Mar 31
H&E Equipment Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 31, 2025
Key Takeaways
H&E Equipment Services reported a decline in revenues and a net loss in the first quarter of 2025 compared to the same period in 2024. Total revenues decreased by 14.0% to $319.5 million, and the company recorded a net loss of $6.2 million. Adjusted net income, excluding transaction expenses, was $1.2 million. The decline was primarily attributed to weak demand in local markets and pressure from merger announcements.
Total revenues for Q1 2025 were $319.5 million, a decrease of 14.0% from $371.4 million in Q1 2024.
The company reported a net loss of $6.2 million in Q1 2025, compared to a net income of $25.9 million in Q1 2024.
Adjusted net income, excluding transaction expenses, was $1.2 million in Q1 2025.
Total equipment rental revenues decreased by 7.2% to $274.0 million in Q1 2025.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Revenue by Segment
Equipment Rentals Revenue
CapyFin.comSales of Rental Equipment Revenue
CapyFin.comSales of New Equipment Revenue
CapyFin.comParts, Service and Other Revenue
CapyFin.com Forward Guidance
The company is enthusiastic about the planned merger with Herc Rentals, which is expected to close mid-year 2025 and is believed to enhance operating resiliency across a broader network.
Positive Outlook
- Continued branch expansion strategy with planned openings to enhance competitiveness.
- Belief that the merger with Herc Rentals will improve operating resiliency.
- Merger expected to provide a broader network of end markets, geographies, products, and customer solutions.
- Merger advantageous for managing slower phases of the business cycle.
- Company remains enthusiastic about the planned merger.
Challenges Ahead
- Seasonally softer first quarter.
- One less calendar day in the first quarter compared to the previous year.
- Weak demand from local markets persisted.
- Merger announcements in the quarter created pressure on business performance.
- These factors contributed to a decline in equipment rental revenues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income