Herc Holdings (HRI) Q3 2025 Earnings
How Did HRI Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: −0.53%.
Did HRI Beat Earnings? Q3 2025 Results
No. Herc Holdings reported Q3 2025 earnings of $2.22 a share on Oct 28, 2025, missing the $2.31 consensus estimate by 4.1%. Revenue was $1.3B against a $1.3B estimate.
Herc Holdings delivered a split verdict in Q3 2025, posting revenue of $1.30 billion that edged past the $1.29 billion consensus by 1.03% and surged 35.1% year-over-year, while adjusted EPS of $2.22 missed the $2.31 estimate by 4.10%, underscoring the near-term profit drag from integrating H&E Equipment Services. The acquisition, completed in mid-2025, was the defining force behind the quarter: equipment rental revenue climbed 30% to $1.12 billion, but interest expense nearly doubled to $134.00 million, GAAP net income tumbled to $30.00 million from $122.00 million a year ago, and adjusted EBITDA margin compressed 390 basis points to 42.3% as redundant integration costs and fleet-rightsizing sales through auction channels weighed on profitability. Net leverage rose to 3.8x, with net debt at $8.18 billion. Despite the earnings shortfall, management reaffirmed full-year 2025 guidance, targeting equipment rental revenue of $3.70 billion to $3.90 billion, adjusted EBITDA of $1.80 billion to $1.90 billion, and adjusted free cash flow of $400.00 million to $500.00 million, signaling confidence that integration synergies will progressively lift margins ahead.
- H&E Equipment Services acquisition driving 35% revenue growth
- National accounts and specialty products delivering strong performance
- Mega project activity supporting national account revenue growth
- 38% year-over-year increase in average fleet at OEC
- Completion of full IT integration of H&E branches within best-in-class timeline
“As we continue to execute on our strategic priorities, the third quarter marked a pivotal step in unlocking the value of our acquisition of H&E Equipment Services. From day one, our focus has been on bringing together the strengths of both companies through a seamless integration, and we're very pleased with the pace and success of those efforts to date.”
Herc Holdings CEO, on the earnings call
What Was Herc Holdings's Outlook in Q3 2025?
Herc Holdings reaffirmed its full-year 2025 guidance (excluding Cinelease): equipment rental revenue of $3.7 billion to $3.9 billion, adjusted EBITDA of $1.8 billion to $1.9 billion, net rental equipment capital expenditures of $400 million to $600 million, gross capex of $900 million to $1.1 billion, and adjusted free cash flow of $400 million to $500 million (including benefits from the One Big Beautiful Bill Act). Key assumptions include OEC dispositions of $1.1 billion to $1.2 billion to optimize fleet, and incremental specialty equipment investment to support cross-sell synergies. The company expects to continue gaining market share through fleet investment, fleet optimization, acquisitions, greenfield expansion, and cross-selling its diversified product portfolio.
HRI YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.3B | $965.0M | +35.1% |
| Net Income | $30.0M | $122.0M | −75.4% |
| Operating Income | $38.0M | $262.1M | −85.5% |
HRI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.