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Mar 31, 2023

Herc Holdings Q1 2023 Earnings Report

Herc Holdings reported record first quarter results, driven by strong equipment rental revenue and strategic acquisitions.

Key Takeaways

Herc Holdings reported a record first quarter with total revenues of $740 million, a 30% increase year-over-year. Net income increased by 16% to $67 million, or $2.28 per diluted share. The company is affirming its full year 2023 adjusted EBITDA guidance range and net rental capital expenditures guidance.

Equipment rental revenue reached a record $654 million, up 24% year-over-year.

Total revenues hit a record $740 million, a 30% increase year-over-year.

Net income increased 16% to $67 million, or $2.28 per diluted share.

Adjusted EBITDA increased 30% to $308 million with an adjusted EBITDA margin of 41.6%.

Total Revenue
$740M
Previous year: $567M
+30.4%
EPS
$2.35
Previous year: $1.95
+20.5%
Rental Fleet OEC
$5.9B
Previous year: $4.6B
+28.3%
Average Fleet Age
47
Previous year: 48
-2.1%
Gross Profit
$256M
Previous year: $178M
+43.8%
Cash and Equivalents
$40M
Previous year: $22.8M
+75.4%
Free Cash Flow
$202M
Previous year: $130M
+55.4%
Total Assets
$6.28B
Previous year: $4.72B
+33.0%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

The Company is affirming its full year 2023 adjusted EBITDA guidance range and net rental capital expenditures guidance.

Positive Outlook

  • Forecasted higher construction spending in 2023
  • Investing in its fleet
  • Capitalizing on strategic acquisitions
  • Capitalizing on greenfield opportunities
  • Cross-selling a diversified product portfolio

Revenue & Expenses

Visualization of income flow from segment revenue to net income