Equipment rental firm Herc's Q3 profit misses on H&E acquisition costs

Herc Holdings

28/10/2025 10:46

Overview

Herc Holdings Q3 revenue rises 35% yr/yr, beating analyst expectations

Adjusted EPS for Q3 misses analyst expectations

Company completed H&E technology integration, enhancing operational efficiency

Outlook

Herc Holdings reaffirms 2025 equipment rental revenue of $3.7 bln to $3.9 bln

Adjusted EBITDA for 2025 expected between $1.8 bln and $1.9 bln

Net rental equipment capex for 2025 forecasted at $400 mln to $600 mln

Result Drivers

H&E INTEGRATION - Completion of H&E technology integration enhanced operational efficiency, according to CEO Larry Silber

RENTAL REVENUE GROWTH - Equipment rental revenue rose 30%, contributing significantly to total revenue increase

ACQUISITION COSTS - Increased transaction expenses and interest costs linked to H&E acquisition impacted earnings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.30 bln
$1.29 bln (7 Analysts)
Q3 Adjusted EPS
Miss
$2.22
$2.86 (8 Analysts)
Q3 Adjusted Net Income
$74 mln
Q3 Net Income
$30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Herc Holdings Inc is $160.00, about 16.7% above its October 27 closing price of $133.28

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwbZWskPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)