H&E Equipment Q4 2021 Earnings Report
Key Takeaways
H&E Equipment Services, Inc. reported a 5.1% increase in revenue to $281.3 million for the fourth quarter of 2021, compared to $267.7 million in the fourth quarter of 2020. Net income was $21.7 million in the fourth quarter of 2021 compared to a net loss of $21.3 million in the fourth quarter of 2020.
Revenues increased 5.1% in the fourth quarter of 2021 to $281.3 million compared to $267.7 million in the fourth quarter of 2020.
Net income was $21.7 million in the fourth quarter of 2021 compared to a net loss of $21.3 million in the fourth quarter of 2020.
Adjusted EBITDA increased 18.4% in the fourth quarter of 2021 to $110.4 million compared to $93.3 million in the fourth quarter of 2020.
Total equipment rental revenues for the fourth quarter of 2021 were $203.7 million, an increase of $40.8 million, or 25.1%, compared to $162.9 million in the fourth quarter of 2020.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Forward Guidance
Favorable industry trends remain in place, providing abundant opportunities for growth in 2022. Following 2021 gross capital expenditures of $437 million, gross expenditures in 2022 are expected to range from $550 million to $600 million, representing the largest annual gross spend in the Company’s history.
Positive Outlook
- Strong customer demand for our rental fleet persisted well into the final quarter of 2021, resulting in higher average physical utilization and rental rate appreciation.
- Feedback from our customers suggests elevated equipment rental demand is likely to persist through 2022 with broadening activity in the non-residential construction and industrial end markets.
- Strong performance in 2021 of key industry measures of future construction activity support the likelihood for further expansion in 2022 of these important end markets.
- The recently passed Bipartisan Infrastructure Bill is expected to supplement demand for our fleet as our customers outline growing needs in 2022 ahead of government appropriation.
- The planned growth of our equipment rental fleet in 2022 underscores our confidence in a fundamentally robust cycle.
Challenges Ahead
- There are not any negatives in the provided document.
Revenue & Expenses
Visualization of income flow from segment revenue to net income