Companies /Industrials

Herc Holdings Inc

NYSE: HRI Rental & Leasing Services
$140.96
▼ $1.08 (−0.76%) today
Markets closed · 10:45pm ET

Q2 2026 Earnings

Reported Jul 28, 2026, 6:31am ET · SEC source
$1.43
Beat +95.01%
EPS · est. $0.73
$1.2B
Beat +6.09%
Revenue · est. $1.1B
+0.8%
Beating market
HRI vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0Jul 28Jul 29report 6:31am ETearnings−0.6%−12.2%
−15%−10%−5%0Jul 28Jul 29earnings−0.6%−12.2%
HRI −12.2%S&P 500 −0.6%
−15%−10%−5%0Jul 28Jul 29report 6:31am ETearnings−1.5%−12.2%
−15%−10%−5%0Jul 28Jul 29earnings−1.5%−12.2%
HRI −12.2%NASDAQ −1.5%
−12%−6%0+6%Jul 27Aug 4report 6:31am ETearnings+4.6%+5.4%
−12%−6%0+6%Jul 27Aug 4earnings+4.6%+5.4%
HRI +5.4%S&P 500 +4.6%
−12%−6%0+6%Jul 27Aug 4report 6:31am ETearnings+6.8%+5.4%
−12%−6%0+6%Jul 27Aug 4earnings+6.8%+5.4%
HRI +5.4%NASDAQ +6.8%
−7.35%
Day of report
−3.52%
Next session
+15.22%
One week
+4.85%
30 days

S&P 500 over the same 30 days: +4.08%.

Did HRI Beat Earnings? Q2 2026 Results

Herc Holdings delivered a convincing second-quarter beat on Wednesday, with adjusted EPS of $1.43 coming in 95.01% above the $0.73 consensus estimate as the equipment rental giant reaped early rewards from its transformative H&E Equipment Services acquisition. Total revenues climbed 20.2% year-over-year to $1.20 billion, ahead of the $1.13 billion analysts had anticipated, with equipment rental revenue alone rising 23% to $1.07 billion on the strength of a larger post-acquisition fleet and surging mega project activity. Adjusted EBITDA grew 19% to $487.00 million, though margin edged slightly lower to 40.4% as fuel inflation created roughly 150 basis points of headwind. On a GAAP basis, the company posted net income of $19.00 million, compared to a net loss of $35.00 million a year ago when deal-related charges weighed heavily. Management raised full-year 2026 guidance, lifting equipment rental revenue expectations to $4.38 billion-$4.48 billion and adjusted EBITDA to $2.05 billion-$2.13 billion, signaling confidence that integration synergies and fleet expansion will sustain momentum through year-end.

Key Takeaways
  • H&E Equipment Services acquisition adding scale, fleet capacity, talent and branch density
  • 23% increase in equipment rental revenue driven by larger fleet size, mega project volume, and revenue synergies
  • Dollar utilization improved to 39.3% from 38.3% year-over-year
  • National accounts led growth fueled by robust mega project activity
  • Higher mix of specialty equipment rentals generating double-digit revenue growth
  • Revenue synergies and cost synergies tracking to plan
  • Disciplined fleet management drove positive fleet efficiency

“After successfully completing the H&E integration in the first quarter, the second quarter marked an important turning point for Herc Rentals, with our key metrics improving on a combined, comparable basis, both sequentially and year-over-year. Revenue synergies and cost synergies are tracking to plan. And while fuel inflation was a macroeconomic headwind in the quarter, we are taking additional actions to mitigate its impact. Importantly, disciplined fleet management drove positive fleet efficiency, supported by increased rental activity.”

Herc Holdings CEO, on the earnings call

Forward Guidance & Outlook

Herc Holdings raised its full-year 2026 guidance. Equipment rental revenue guidance increased to $4.375 billion–$4.475 billion from $4.275 billion–$4.4 billion. Adjusted EBITDA guidance increased to $2.05 billion–$2.125 billion from $2.0 billion–$2.1 billion. Net rental equipment capital expenditures guidance raised to $850 million–$950 million from $500 million–$800 million, and gross capex to $1.25 billion–$1.4 billion from $800 million–$1.1 billion. Key assumptions include revenue synergies of an incremental $100M–$120M, cost synergies of an incremental $90M for a fully realized target of $125M by year-end 2026, fuel inflation persisting through the remainder of 2026, fleet dispositions at OEC of approximately $900M–$950M, an effective tax rate of approximately 25%, and free cash flow in the range of $250M–$350M.

HRI YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$400.0M$800.0M$1.2B$1.0B$1.2BRevenue$7.5M$19.0MNet Income
$0$400.0M$800.0M$1.2BRevenueNet Income

HRI Revenue by Segment

Equipment Rental$1.1B+23.2%
Sales of Rental Equipment$110.0M+3.8%
Sales of New Equipment, Parts and Supplies$12.0M−29.4%
Service and Other Revenue$10.0M+11.1%

Figures from SEC filings and company reports. Not investment advice.