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Jun 30
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.
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 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.
- Moderation in commercial construction weighs on revenue quality.