Herc Holdings Inc. (NYSE: HRI), a leading equipment rental supplier, announced its financial results for the third quarter ended September 30, 2025, showcasing significant growth and the successful integration of H&E Equipment Services. The company’s ongoing efforts to align both operations are expected to drive market share expansion and efficiency.

1. Strategic Integration Progress

Larry Silber, president and CEO of Herc Holdings, emphasized the importance of the recent acquisition of H&E Equipment Services, stating, “The third quarter marked a pivotal step in unlocking the value of our acquisition.” The company successfully completed its IT integration ahead of schedule, migrating all acquired branches to its systems. This seamless transition allows the combined company to operate from a unified platform that enhances various operational aspects, including fleet management and customer relationship management.

Silber noted that despite the current macroeconomic uncertainties, Herc Holdings remains resilient. “Our scale and diversified footprint continue to be key strengths, enabling us to navigate this bifurcated landscape with resilience and agility,” he added.

2. Financial Highlights for Q3 2025

Total Revenues: Increased by 35% to $1,304 million, compared to $965 million in the same period last year, driven by a 30% rise in equipment rental revenue.

Dollar Utilization: Reported at 39.9%, down from 42.2% as lower utilization of the acquired fleet persisted.

Direct Operating Expenses: Totaled $467 million, representing 41.6% of equipment rental revenue, compared to 38.6% in Q3 2024.

Depreciation: Rental equipment depreciation rose 41% to $246 million, attributed to the larger fleet size from the H&E acquisition.

Net Income: Reported at $30 million, down from $122 million in the prior year, with adjusted net income decreasing by 40% to $74 million, or $2.22 per diluted share.

Adjusted EBITDA: Increased by 24% to $551 million, with an adjusted EBITDA margin of 42.3%, a decrease from 46.2% in the prior-year period.

3. Year-to-Date Performance

For the first nine months of 2025, Herc Holdings reported:

Total Revenues: Increased by 21% to $3,167 million, with equipment rental revenue rising by 16%.

Dollar Utilization: Reported at 38.8%, down from 41.0% in the same period last year.

Net Loss: Recorded at $23 million, contrasting with a net income of $257 million in 2024. Adjusted net income was $170 million, or $5.54 per diluted share.

Adjusted EBITDA: Increased by 13% to $1,299 million, with an adjusted EBITDA margin of 41.0%, down from 43.8% previously.

4. Capital Management and Future Outlook

Herc Holdings continues to manage its capital expenditures carefully. The company reported net rental equipment capital expenditures of $529 million for the nine months ended September 30, 2025, with a total fleet valuation of approximately $9.6 billion.

The company is reaffirming its full-year guidance for 2025, expecting equipment rental revenue to range between $3.7 billion to $3.9 billion and adjusted EBITDA between $1.8 billion to $1.9 billion. Herc Holdings aims to leverage its scale to capture market share, particularly in light of anticipated higher construction spending.

5. Conclusion

As Herc Holdings integrates H&E Equipment Services and navigates a challenging economic environment, its recent financial results reflect a company poised for growth. The focus on operational efficiencies, a diversified product portfolio, and strategic capital management positions Herc Holdings favorably for the future. Investors and stakeholders will be keenly watching the company's progress as it continues to unlock the full potential of its recent acquisitions.

Original press release