Herc Holdings reported its third‑quarter 2025 earnings, showing equipment‑rental revenue of $1.122 billion, up 30% year‑over‑year, and total revenue of $1.304 billion, a 35% increase from the same period last year.
Net income for the quarter was $30 million, down sharply from $122 million in the prior year, largely due to acquisition‑related costs and higher interest expenses. Adjusted net income reached $74 million, or $2.22 per diluted share, missing analyst EPS estimates of $2.50 and $2.31.
Adjusted EBITDA was $551 million, a 24% rise YoY, with a margin of 42.3%, down from 46.2% because of integration costs and a higher proportion of lower‑margin auction sales.
The company reaffirmed its full‑year 2025 guidance: equipment‑rental revenue of $3.7 billion to $3.9 billion, adjusted EBITDA of $1.8 billion to $1.9 billion, net rental‑equipment capex of $400 million to $600 million, and gross capex of $900 million to $1.1 billion. Net leverage stood at 3.8× as of September 30, 2025, with a target of 2×‑3× by the end of 2027.
Transaction highlights include the sale of the Cinelease studio entertainment business on July 31, 2025, which generated $100 million in cash used to repay part of the new ABL credit facility. The acquisition of H&E Equipment Services was completed on June 2, 2025, for $4.8 billion; the full IT integration was finished within 90 days, expected to unlock cost and revenue synergies over the next three years.
Operational context: 17 greenfield locations opened in the first nine months of 2025, six of which opened in Q3. The fleet size was approximately $9.6 billion at original equipment cost. A quarterly dividend of $0.70 per share was declared and paid on September 5, 2025. Management noted a stable operating environment despite high interest rates, with national accounts and specialty products driving growth.
Analysts highlighted strong revenue growth but expressed concerns over profitability pressures and debt levels. Overall sentiment was mixed, with emphasis on the successful integration of H&E and the strategic focus on core rental operations.
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