Herc Holdings Q3 2022 Earnings Report
Key Takeaways
Herc Holdings reported a strong third quarter in 2022, marked by significant increases in equipment rental revenue, total revenue, and net income. The company's adjusted EBITDA also saw substantial growth, and they raised their full-year adjusted EBITDA guidance.
Equipment rental revenue increased by 35.9% to a record $706.2 million.
Total revenues increased by 35.4% to $745.1 million.
Net income increased by 40.2% to $101.4 million, or $3.36 per diluted share.
Adjusted EBITDA grew by 40.3% to a record $345.0 million, with adjusted EBITDA margin expanding to 46.3%.
Herc Holdings
Herc Holdings
Herc Holdings Revenue by Segment
Forward Guidance
The Company updated its full year 2022 adjusted EBITDA guidance range and net rental capital expenditures guidance. The updated guidance range for the full year 2022 adjusted EBITDA reflects an increase of 36% to 40% compared to full year 2021 results.
Positive Outlook
- Demand from our customers continues to be strong as we close out 2022.
- We continue to benefit from tight equipment inventory
- Believe a secular shift from ownership to rental is accelerating.
- With the steady announcement of new industrial, alternative energy and infrastructure projects
- We believe we are well-positioned to generate continued revenue growth in 2023 and beyond.
Revenue & Expenses
Visualization of income flow from segment revenue to net income