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Sep 30, 2023

H&E Equipment Q3 2023 Earnings Report

H&E Equipment Services reported strong Q3 2023 results driven by robust industry conditions, fleet growth, and branch expansion.

Key Takeaways

H&E Equipment Services reported a 23.6% increase in revenues to $400.7 million in Q3 2023 compared to Q3 2022. Net income was $48.9 million, including a pre-tax $5.7 million non-cash goodwill impairment charge. Excluding the impairment charge, net income was $53.0 million. Adjusted EBITDA totaled $189.1 million, a 36.2% increase compared to the same period last year.

Revenues increased by 23.6% to $400.7 million.

Net income was $48.9 million, or $53.0 million excluding a goodwill impairment charge.

Adjusted EBITDA increased by 36.2% to $189.1 million.

Total equipment rental revenues increased by 24.5% to $315.8 million.

Total Revenue
$401M
Previous year: $324M
+23.6%
EPS
$1.46
Previous year: $1.05
+39.0%
Gross Margin
47%
Previous year: 46.8%
+0.4%
Equipment Rental Gross Margin
47.4%
Time Utilization
70%
Previous year: 73.3%
-4.5%
Gross Profit
$188M
Previous year: $152M
+24.0%
Cash and Equivalents
$6.92M
Previous year: $220M
-96.9%
Free Cash Flow
$120M
Previous year: $95.1M
+25.7%
Total Assets
$2.59B
Previous year: $2.22B
+16.7%

H&E Equipment

H&E Equipment

H&E Equipment Revenue by Segment

Forward Guidance

The Company believes a robust business environment will persist through the final quarter of 2023 and into 2024.

Positive Outlook

  • Non-residential construction activity remains resilient.
  • Expect to benefit from an expansion in project opportunities.
  • Mega projects should meaningfully contribute to the enhanced U.S. construction activity.
  • These projects continue to populate our geographic footprint and have substantial equipment requirements and lengthy project completion schedules.
  • The value proposition of rental compared with equipment ownership is expected to lead to further growth in rental penetration.

Revenue & Expenses

Visualization of income flow from segment revenue to net income