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Dec 31, 2023

Herc Holdings Q4 2023 Earnings Report

Herc Holdings reported strong full year results and announced 2024 full year guidance.

Key Takeaways

Herc Holdings reported a 6% increase in total revenues reaching $831 million in Q4 2023. Net income decreased by 7% to $91 million, or $3.20 per diluted share. The company anticipates continued growth in 2024, with equipment rental revenue expected to increase by 7% to 10%.

Total revenues increased 6% to $831 million.

Net income decreased 7% to $91 million, or $3.20 per diluted share.

Adjusted EBITDA increased 6% to $382 million; adjusted EBITDA margin at 46.0%.

Rental pricing increased 5.8% year-over-year.

Total Revenue
$832M
Previous year: $786M
+5.9%
EPS
$3.24
Previous year: $3.44
-5.8%
Rental Fleet OEC
$6.3B
Previous year: $5.6B
+12.5%
Average Fleet Age
45
Previous year: 48
-6.3%
Gross Profit
$295M
Previous year: $317M
-7.0%
Cash and Equivalents
$71M
Previous year: $53.5M
+32.7%
Free Cash Flow
$33M
Previous year: -$250M
-113.2%
Total Assets
$7.47B
Previous year: $5.96B
+25.5%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

Herc Holdings anticipates equipment rental revenue growth of 7% to 10% and adjusted EBITDA between $1.55 billion and $1.60 billion for the full year 2024, excluding the Cinelease studio entertainment business.

Positive Outlook

  • Expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024
  • Investing in its fleet
  • Optimizing its existing fleet
  • Capitalizing on strategic acquisitions and greenfield opportunities
  • Cross-selling a diversified product portfolio

Revenue & Expenses

Visualization of income flow from segment revenue to net income