Loading...
•
Dec 31, 2022
H&E Equipment Q4 2022 Earnings Report
Reported record financial performance and significant expansion, with revenues increasing and strategic acquisitions completed.
Key Takeaways
H&E Equipment Services reported a strong fourth quarter in 2022, marked by a 25.6% increase in revenues to $353.1 million and a significant rise in net income to $51.2 million. The company benefited from solid fleet utilization, gains in equipment pricing, and the inclusion of One Source Equipment Rentals, Inc. following its acquisition. Looking ahead, H&E anticipates a robust business environment driven by strong project backlogs and federally funded programs.
Revenues increased 25.6% to $353.1 million.
Net income was $51.2 million compared to $21.7 million.
Total equipment rental revenues increased 35.3% to $275.7 million.
Gross margin improved to 45.1% compared to 42.0%.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Revenue by Segment
Equipment Rentals Revenue
CapyFin.comSales of New Equipment Revenue
CapyFin.com Forward Guidance
H&E expects the robust business environment to persist through the year as strong project backlogs and accelerating federally funded programs escalate spending, particularly in the non-residential and industrial end markets.
Positive Outlook
- Strong project backlogs.
- Accelerating federally funded programs.
- Rise in federal programs addressing improvements in infrastructure.
- Further growth in rental penetration to drive new demand for equipment.
- Healthy equipment utilization and contribute to an attractive pricing environment.
Challenges Ahead
- Unfavorable fiscal conditions.
- Rising interest rates.
- Lingering delays in equipment deliverability.
- Shift by certain customers away from the ownership of equipment.
- Pressure from typical seasonal factors that contributed to a decline in the measure of 110 basis points when compared to the fourth quarter of 2021 and 130 basis points on a sequential quarterly basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income