Herc Holdings Q2 2024 Earnings Report
Key Takeaways
Herc Holdings reported a 6% increase in total revenues to $848 million and a record equipment rental revenue of $765 million. However, net income decreased by 8% to $70 million due to slower growth in the local market and increased operating expenses. The company reaffirmed its full-year 2024 guidance.
Record equipment rental revenue of $765 million, an increase of 9%.
Record total revenues of $848 million, an increase of 6%.
Rental pricing increased 3.5% year-over-year.
Net income decreased 8% to $70 million, or $2.46 per diluted share.
Herc Holdings
Herc Holdings
Herc Holdings Revenue by Segment
Forward Guidance
The Company is reaffirming 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
- As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.
Revenue & Expenses
Visualization of income flow from segment revenue to net income