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Sep 30, 2022

H&E Equipment Q3 2022 Earnings Report

Reported record results for its rental business segment, meaningful fleet growth and further expansion of its branch network.

Key Takeaways

H&E Equipment Services, Inc. announced strong Q3 2022 results with a 17.7% increase in revenues to $324.3 million and a 55.2% increase in net income to $38.4 million, driven by record performance in the equipment rental segment and fleet growth.

Revenues increased 17.7% to $324.3 million compared to Q3 2021.

Net income increased 55.2% to $38.4 million compared to Q3 2021.

Adjusted EBITDA totaled $139.4 million, an increase of 24.1% compared to Q3 2021.

Total equipment rental revenues were $253.6 million, an increase of 28.6% compared to Q3 2021.

Total Revenue
$324M
Previous year: $319M
+1.5%
EPS
$1.05
Previous year: $0.68
+54.4%
Gross Margin
46.8%
Previous year: 41.4%
+13.0%
Time Utilization
73.3%
Previous year: 71.9%
+1.9%
Dollar Utilization
42.7%
Previous year: 38.9%
+9.8%
Gross Profit
$152M
Previous year: $114M
+33.4%
Cash and Equivalents
$220M
Previous year: $235M
-6.2%
Free Cash Flow
$95.1M
Previous year: $113M
-15.9%
Total Assets
$2.22B
Previous year: $2.05B
+8.2%

H&E Equipment

H&E Equipment

H&E Equipment Revenue by Segment

Forward Guidance

H&E expects favorable industry fundamentals to prevail through the close of 2022 and into 2023, supported by a backlog of projects, constricting global supply chains, and the anticipation of infrastructure projects and expansion of U.S. manufacturing capabilities and renewable energy projects.

Positive Outlook

  • Favorable industry fundamentals expected to continue through 2022 and into 2023.
  • Strong customer demand sustained by a backlog of projects in non-residential construction and industrial end markets.
  • Global supply chains continue to constrict the availability of rental equipment.
  • Solid fleet utilization and favorable pricing trends are expected.
  • Benefit from the onset of numerous infrastructure projects as early as 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income