Loading...
•
Sep 30, 2025
Herc Holdings Q3 2025 Earnings Report
Herc Holdings reported its third quarter 2025 results, highlighting increased revenues driven by equipment rental and the completion of H&E technology integration.
Key Takeaways
Herc Holdings delivered a strong third quarter in 2025, with total revenues increasing by 35% to $1,304 million, primarily fueled by a 30% rise in equipment rental revenue. The company successfully completed the IT integration of H&E Equipment Services, a key strategic milestone, and reported a net income of $30 million, or $0.90 per diluted share, alongside an adjusted net income of $74 million, or $2.22 per diluted share.
Total revenues increased by 35% to $1,304 million, compared to $965 million in the prior-year period.
Equipment rental revenue grew by 30% to $1,122 million.
Net income for the quarter was $30 million, or $0.90 per diluted share.
Adjusted net income was $74 million, or $2.22 per diluted share, despite a 40% decrease year-over-year.
Revenue by Segment
Forward Guidance
Herc Holdings reaffirmed its full-year 2025 guidance for equipment rental revenue, adjusted EBITDA, and gross and net rental capital expenditures, excluding the Cinelease studio entertainment business.
Positive Outlook
- Equipment rental revenue is projected to be between $3.7 billion and $3.9 billion.
- Adjusted EBITDA is expected to range from $1.8 billion to $1.9 billion.
- Net rental equipment capital expenditures are guided between $400 million and $600 million.
- Gross capital expenditures are anticipated to be between $900 million and $1.1 billion.
- The company expects to gain market share by capitalizing on forecasted higher construction spending, fleet investment, and recent acquisitions.
Challenges Ahead
- Local market growth is tempered by prolonged high interest rates.
- Operating expenses as a percent of equipment rental revenue were elevated due to lower fixed cost absorption and acquisition-related redundancies.
- Adjusted EBITDA margin decreased due to acquisition-related redundant costs and a larger proportion of used equipment sales through lower-margin auction channels.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...