Herc Holdings reported record full-year revenues driven by the significant acquisition of H&E, which is progressing well with integration ahead of schedule. While the company achieved record top-line growth and improved equipment rental revenue, profitability metrics like adjusted net income and adjusted EBITDA margin declined year-over-year due to acquisition-related costs and integration challenges.
Record total revenues of $4,376 million, an increase of 23% year-over-year.
positiveRecord equipment rental revenue of $3,770 million, an increase of 18% year-over-year.
positiveIntegration of H&E acquisition is advancing with strong execution and run-rate cost synergies ahead of schedule.
positiveAnnounced 2026 guidance for equipment rental revenue between $4.275 billion to $4.4 billion and Adjusted EBITDA between $2.0 billion to $2.1 billion.
positiveAdjusted net income decreased 41% to $239 million for the full year 2025, compared to $367 million in the prior year.
negativeAdjusted EBITDA margin decreased to 41.5% for the full year 2025, down from 44.4% in the prior year, primarily due to acquisition-related redundant costs and a larger proportion of used equipment sales through lower-margin channels.
attentionDollar utilization decreased to 38.5% for the full year 2025, down from 40.9% in the prior year, due to lower utilization of the acquired fleet.
attentionTransaction expenses were $199 million for the full year 2025, a significant increase from $11 million in the prior year, primarily related to the H&E acquisition costs.
attentionNet debt increased to $8.1 billion as of December 31, 2025, with net leverage rising to 3.95x from 2.54x in the prior year.
attentionDirect operating expenses as a percentage of equipment rental revenue increased to 42.5% for the full year 2025, up from 40.5% in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
2025 was a pivotal year with the completion of the largest acquisition in the industry, creating significant long-term strategic and financial value.
The integration of H&E is progressing well, with technology systems migrated in record time and cost synergies achieved ahead of schedule.
The larger platform positions Herc Rentals to leverage scale-driven network benefits and industry-leading technology for above-market growth in 2026.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.