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Dec 31, 2024

Herc Holdings Q4 2024 Earnings Report

Key Takeaways

Herc Holdings achieved record Q4 equipment rental revenue, growing 12% YoY. Total revenue increased 14% YoY, but a $194M loss on Cinelease assets resulted in a net loss of $46M. Adjusted net income increased 11% YoY, and operating margins remained stable.

Total Revenue
$951M
Previous year: $832M
+14.3%
EPS
$3.58
Previous year: $3.24
+10.5%
Rental Fleet OEC
$7B
Previous year: $6.3B
+11.1%
Average Fleet Age (mo)
46
Previous year: 45
+2.2%
Cash and Equivalents
$83M
Previous year: $71M
+16.9%
Free Cash Flow
$314M
Previous year: $33M
+851.5%
Total Assets
$7.88B
Previous year: $7.47B
+5.4%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

Herc Holdings expects 4-6% equipment rental revenue growth in 2025, driven by strategic acquisitions, mega projects, and continued fleet optimization.

Positive Outlook

  • Projected 4-6% rental revenue growth.
  • Strategic acquisitions and greenfield expansions.
  • Mega projects expected to drive demand.
  • Continued fleet investment and optimization.
  • Strong liquidity with $1.9B in available resources.

Challenges Ahead

  • Uncertain 2025 operating landscape.
  • Continued pressure from high interest rates.
  • Potentially weaker local market growth.
  • Higher operating costs due to insurance and delivery expenses.
  • Ongoing challenges in Cinelease asset divestiture.