Herc Holdings

Herc Holdings (HRI) Q2 2025 Earnings

Reported Jul 29, 2025 at 6:32 AM ET · SEC Source

Q2 25 EPS

$1.87

BEAT +6.18%

Est. $1.76

Q2 25 Revenue

$1.00B

BEAT +2.06%

Est. $981.8M

vs S&P Since Q2 25

+5.6%

BEATING MARKET

HRI +26.1% vs S&P +20.5%

Market Reaction

Did HRI Beat Earnings? Q2 2025 Results

Herc Holdings posted a headline beat in Q2 2025, with adjusted EPS of $1.87 topping the $1.76 consensus by 6.18% and revenue of $1.00 billion edging past estimates by 2.06% on 18.2% year-over-year growth, yet the quarter's defining story was the comp… Read more Herc Holdings posted a headline beat in Q2 2025, with adjusted EPS of $1.87 topping the $1.76 consensus by 6.18% and revenue of $1.00 billion edging past estimates by 2.06% on 18.2% year-over-year growth, yet the quarter's defining story was the complexity introduced by the $5.3 billion acquisition of H&E Equipment Services, which closed June 2. The transformative deal drove a GAAP net loss of $35.00 million, compared to net income of $70.00 million a year ago, weighed down by $73.00 million in transaction expenses and a $49.00 million markdown on Cinelease assets. Adjusted EBITDA climbed 13% to $406.00 million, though margin compressed 200 basis points to 40.5% as H&E legacy branch revenue fell 14.1% due to pre-close disruption. Looking ahead, management guided full-year equipment rental revenue to $3.70 billion to $3.90 billion and adjusted EBITDA to $1.80 billion to $1.90 billion, reflecting near-term integration drag offset by mega project strength and specialty solutions growth.

Key Takeaways

  • H&E Equipment Services acquisition closed June 2, 2025, adding 162 branches
  • 14% growth in equipment rental revenue driven by second-half 2024 acquisitions and H&E June results
  • National account revenue benefiting from mega project activity
  • Herc legacy branches (excluding Cinelease) grew 4% YoY driven by government, infrastructure, and MRO
  • H&E legacy branches declined 14.1% YoY due to pre-close dis-synergies
  • Continued moderation in interest-rate-sensitive commercial sector
  • Cinelease studio entertainment business continued decline due to industry softness
  • SG&A improved as percent of rental revenue from initial H&E corporate overhead cost synergies
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HRI YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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HRI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“The second quarter marked an important milestone for our company. On June 2nd, we completed the transaction to bring Herc Rentals and H&E Equipment Services together. This acquisition, the largest in the industry, will accelerate our strategy to deliver market leading growth and superior value creation by providing geographic and customer diversification, a substantially expanded footprint in key regions with economies of scale, and a larger fleet to strengthen our position as a premier rental company in North America.”

— Larry Silber, Q2 2025 Earnings Press Release