Companies /Industrials

Herc Holdings Inc

NYSE: HRI Rental & Leasing Services
$140.89
▼ $1.15 (−0.81%) today
Markets closed · 5:16pm ET

Q3 2025 Earnings

Reported Oct 28, 2025, 6:31am ET · SEC source
$2.22
Miss −4.10%
EPS · est. $2.31
$1.3B
Beat +1.03%
Revenue · est. $1.3B
−2.6%
Trailing market
HRI vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%+12%Oct 28Oct 29report 6:31am ETearnings+0.5%+12.3%
0+4%+8%+12%Oct 28Oct 29earnings+0.5%+12.3%
HRI +12.3%S&P 500 +0.5%
0+4%+8%+12%Oct 28Oct 29report 6:31am ETearnings+1.1%+12.3%
0+4%+8%+12%Oct 28Oct 29earnings+1.1%+12.3%
HRI +12.3%NASDAQ +1.1%
0+4%+8%+12%Oct 27Nov 5report 6:31am ETearnings−1.8%+1.2%
0+4%+8%+12%Oct 27Nov 5earnings−1.8%+1.2%
HRI +1.2%S&P 500 −1.8%
0+5%+10%Oct 27Nov 5report 6:31am ETearnings−2.0%+1.2%
0+5%+10%Oct 27Nov 5earnings−2.0%+1.2%
HRI +1.2%NASDAQ −2.0%
+4.02%
Day of report
+2.19%
Next session
−3.29%
One week
−3.15%
30 days

S&P 500 over the same 30 days: −0.53%.

Did HRI Beat Earnings? Q3 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$400.0M$800.0M$1.2B$965.0M$1.3BRevenue$122.0M$30.0MNet Income$262.1M$38.0MOperating Income
$0$400.0M$800.0M$1.2BRevenueNet IncomeOperating Income

HRI Revenue by Segment

Equipment Rental$1.1B+29.6%
Sales of Rental Equipment$151.0M
Sales of New Equipment, Parts and Supplies$18.0M
Service and Other Revenue$13.0M

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