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Mar 31, 2025
Herc Holdings Q1 2025 Earnings Report
Herc Holdings posted a net loss due to acquisition-related costs but achieved record revenues in Q1 2025.
Key Takeaways
Herc Holdings delivered record revenue of $861 million in Q1 2025, despite incurring a net loss of $18 million primarily due to $74 million in transaction expenses related to the H&E acquisition. Equipment rental revenue also hit a record high, and adjusted EPS came in at $1.30.
Total revenue reached a record $861 million, up 7% year-over-year
Net loss of $18 million caused by H&E acquisition-related expenses
Adjusted EBITDA held steady at $339 million with a 39.4% margin
Free cash flow totaled $49 million for the quarter
Revenue by Segment
Forward Guidance
Herc Holdings reaffirmed its FY2025 outlook with stable revenue and EBITDA guidance, despite ongoing challenges in rate-sensitive markets.
Positive Outlook
- Equipment rental revenue expected to grow between 4% and 6%
- Adjusted EBITDA guidance maintained at $1.575B to $1.650B
- Net rental capex forecasted between $400M and $600M
- Gross capital expenditures expected between $700M and $900M
- Company expects to outperform the broader rental market
Challenges Ahead
- Dollar utilization declined from 39.7% to 37.6%
- Interest-rate sensitive project delays affected local demand
- Adjusted EBITDA margin dropped to 39.4% from 42.2%
- Increased insurance and facilities costs weighed on margins
Historical Earnings Impact
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Avg. Return Before/After Earnings
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