Equipment rental firm Herc Holdings Q2 revenue up 18%, beats estimates

Herc Holdings

29/07/2025 11:43

Overview

Herc Holdings Q2 revenue rises 18%, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus

Co reports $35 mln net loss due to acquisition costs and asset sale losses

Outlook

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

Company expects adjusted EBITDA of $1.8 bln to $1.9 bln for 2025

Herc Holdings forecasts net rental capex of $400 mln to $600 mln for 2025

Company anticipates gross capex of $900 mln to $1.1 bln in 2025

Result Drivers

ACQUISITION IMPACT - H&E acquisition drove revenue growth but also led to transaction costs and dis-synergies

RENTAL REVENUE GROWTH - Equipment rental revenue increased 14%, bolstered by acquisitions and fleet expansion

MARKET MODERATION - Continued moderation in interest-rate sensitive sectors impacted performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1 bln
$981.40 mln (4 Analysts)
Q2 Adjusted EPS
Beat
$1.87
$1.53 (4 Analysts)
Q2 EPS
$1.17
Q2 Adjusted Net Income
$56 mln
Q2 Net Income
-$35 mln
Q2 Adjusted EBITDA
$406 mln
Q2 Adjusted EBITDA Margin
41.0%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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 $170.00, about 11.8% above its July 28 closing price of $149.88

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBwbKwhPLa

(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.)