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Jun 30, 2025
Herc Holdings Q2 2025 Earnings Report
Reported a net loss due to transaction costs, but saw revenue growth driven by the H&E acquisition.
Key Takeaways
Herc Holdings posted strong revenue growth in Q2 2025, primarily driven by the H&E Equipment Services acquisition. However, the company reported a net loss due to significant transaction-related expenses and losses on assets held for sale.
Total revenue rose to $1.002 billion, up 18% from Q2 2024.
Net loss of $35 million driven by acquisition costs and asset write-downs.
Adjusted EBITDA increased 13% to $406 million with a 40.5% margin.
Average fleet age remained stable at 46 months with total OEC of $9.9 billion.
Revenue by Segment
Forward Guidance
Herc Holdings revised its full-year 2025 guidance to reflect the H&E acquisition, focusing on integration synergies and market expansion.
Positive Outlook
- Adjusted EBITDA guidance increased to $1.8–$1.9 billion.
- Equipment rental revenue expected between $3.7–$3.9 billion.
- Strong positioning to benefit from increased construction spending.
- Expanded fleet and greenfield locations enhance market reach.
- Specialty solutions and mega project activity continue to grow.
Challenges Ahead
- Integration-related dis-synergies impacted near-term performance.
- Cinelease asset divestiture generated a $49 million loss.
- Dollar utilization declined due to lower fixed cost absorption.
- H&E performance impacted by pre-acquisition disruptions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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