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Mar 31, 2024
Herc Holdings Q1 2024 Earnings Report
Herc Holdings reported a strong start to 2024 with record first-quarter revenue and adjusted EBITDA margin, driven by key growth markets and strategic investments.
Key Takeaways
Herc Holdings reported a 9% increase in total revenues to $804 million for the first quarter of 2024. Net income decreased by 3% to $65 million, or $2.29 per diluted share. Adjusted EBITDA increased by 10% to $339 million, with an adjusted EBITDA margin of 42.2%. The company is affirming its full year 2024 guidance.
Record first quarter total revenues of $804 million, an increase of 9%.
Net income decreased 3% to $65 million, or $2.29 per diluted share.
Adjusted EBITDA of $339 million increased 10%; adjusted EBITDA margin increased to 42.2%.
Rental pricing increased 5.1% year-over-year.
Revenue by Segment
Forward Guidance
The Company is affirming its full year 2024 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges presented below, excluding Cinelease studio entertainment and lighting and grip equipment rental business.
Positive Outlook
- Equipment rental revenue growth: 7% to 10%
- Adjusted EBITDA: $1.55 billion to $1.60 billion
- Net rental equipment capital expenditures after gross capex: $500 million to $700 million, after gross capex of $750 million to $1 billion
- Expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024
- Investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.
Challenges Ahead
- Excluding Cinelease studio entertainment and lighting and grip equipment rental business.
- Sale process for the Cinelease studio entertainment business is ongoing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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