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Mar 31
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
Herc Holdings
Herc Holdings
Herc Holdings Revenue by Segment
Revenue by Segment
Equipment Rental Revenue
CapyFin.comSales of Rental Equip. Revenue
CapyFin.comNew Equip., Parts, Supplies Revenue
CapyFin.comService and Other Revenue
CapyFin.com 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
- No year-over-year growth in adjusted EBITDA