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Jun 30, 2024
H&E Equipment Q2 2024 Earnings Report
H&E Equipment Services reported an increase in revenue but a decrease in net income for Q2 2024.
Key Takeaways
H&E Equipment Services reported a 4.5% increase in revenue to $376.3 million, driven by the expansion of its branch network, but net income decreased to $33.3 million compared to $41.2 million in the same quarter last year. The company opened six new branch locations and completed an acquisition, increasing its presence to 149 branches across 31 states.
Revenues increased by 4.5% to $376.3 million.
Net income was $33.3 million, compared to $41.2 million in the previous year.
Total equipment rental revenues increased by 7.2% to $312.4 million.
Average time utilization was 66.4%, compared to 69.3% in the prior year.
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.comParts, Service and Other Revenue
CapyFin.com Forward Guidance
H&E anticipates a moderate level of spending and project starts as the construction industry transitions to a lower level of activity. They are encouraged by continued growth in mega projects and increased infrastructure project funding.
Positive Outlook
- Continued growth in mega projects.
- Increased infrastructure project funding.
- H&E's participation in these projects continues to rise.
- Mega projects provide a more stable base of demand.
- Expansion into key U.S. markets.
Challenges Ahead
- More moderate level of spending and project starts.
- Construction industry transitioning to a lower level of activity.
- Higher project financing costs.
- More stringent lending standards.
- Curtailed spending, especially among smaller contractors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income