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Sep 30, 2024
H&E Equipment Q3 2024 Earnings Report
H&E Rentals experienced a decline in revenues and net income compared to the same quarter last year, while total equipment rental revenues increased.
Key Takeaways
H&E Equipment Services reported a decrease in revenue by 4.0% to $384.9 million, and a decrease in net income to $31.1 million for Q3 2024. Despite these declines, total equipment rental revenues increased by 3.3% to $326.2 million. The company also focused on expanding its branch network, adding eight new locations during the quarter, bringing the total to 157 locations across 32 states.
Revenues decreased by 4.0% to $384.9 million.
Net income was $31.1 million, compared to $48.9 million in the prior year.
Total equipment rental revenues increased by 3.3% to $326.2 million.
Eight new branch locations were added, expanding the network to 157 locations.
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
The company expects a trend of moderating activity to persist through the remainder of the year, with physical fleet utilization and rental rates below year-ago measures. Beyond the fourth quarter, the developing outlook for our industry is more encouraging into 2025.
Positive Outlook
- The Dodge Momentum Index (DMI), a leading indicator of construction spending, has exhibited gains for five of the last six months.
- Construction employment remains on a steady upward trajectory.
- A cycle of easing interest rates is expected to have positive implications for local construction activity as projects are reevaluated under more favorable lending conditions.
- The strong expansion of mega projects remains a significant driver of growth for our industry, both today and into the future.
- Branch expansion has led to a greater and more diverse exposure to mega projects, including a growing presence on data centers, solar and wind farms and LNG export facilities.
Challenges Ahead
- Construction spending in the U.S. continues to demonstrate the slowing rate of growth observed over the first half of 2024.
- A trend of moderating activity will persist through the remainder of the year.
- Physical fleet utilization will be below year-ago measures.
- Rental rates will be below year-ago measures.
- Industry fundamentals in the third quarter continued to trail year-ago measures
Revenue & Expenses
Visualization of income flow from segment revenue to net income