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Dec 31, 2022

Herc Holdings Q4 2022 Earnings Report

Herc Holdings reported record results driven by robust demand, improved pricing, strategic fleet investments, end market diversity, and greater branch-network efficiencies.

Key Takeaways

Herc Holdings reported record full year 2022 results. Equipment rental revenue increased 31.5% to a record $713.1 million. Total revenues increased 36.0% to a record $786.0 million. Net income increased 36.2% to $97.8 million, or $3.27 per diluted share. Adjusted EBITDA grew 40.8% to a record $361.2 million and adjusted EBITDA margin expanded 160 basis points to 46.0%.

Equipment rental revenue increased 31.5% to a record $713.1 million

Total revenues increased 36.0% to a record $786.0 million

Net income increased 36.2% to $97.8 million, or $3.27 per diluted share

Adjusted EBITDA grew 40.8% to a record $361.2 million and adjusted EBITDA margin expanded 160 basis points to 46.0%

Total Revenue
$786M
Previous year: $578M
+36.0%
EPS
$3.44
Previous year: $2.46
+39.8%
Rental Fleet OEC
$5.6B
Previous year: $4.4B
+27.3%
Average Fleet Age
48
Previous year: 49
-2.0%
Gross Profit
$317M
Previous year: $91.4M
+247.0%
Cash and Equivalents
$53.5M
Previous year: $35.1M
+52.4%
Free Cash Flow
-$250M
Previous year: $214M
-216.9%
Total Assets
$5.96B
Previous year: $4.49B
+32.7%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

The Company is announcing its full year 2023 adjusted EBITDA guidance range and net rental capital expenditures guidance.

Positive Outlook

  • Adjusted EBITDA: $1.45 billion to $1.55 billion
  • Net rental equipment capital expenditures: $1.0 billion to $1.2 billion
  • Expect to continue to gain share
  • Capturing an outsized position of the forecasted higher construction spending in 2023
  • Capitalizing on strategic acquisitions and greenfield opportunities

Revenue & Expenses

Visualization of income flow from segment revenue to net income