Herc Rentals reports 35% revenue increase

Herc Rentals has reported a 35% increase in total revenues for the third quarter of 2025 to $1.3 billion, with equipment rental revenue rising 30% year-over-year to $1.12 billion. The results include the impact of the acquisition of H&E Equipment, which became part of Herc in early June this year.

Adjusted EBITDA increased 24% to $551 million, with a margin of 42.3%, compared to 46.2% in the same period last year. Net income was $30 million, or $0.90 per diluted share, while adjusted net income was $74 million, or $2.22 per diluted share.

The company said it has completed full technology integration with H&E Equipment Services following its June acquisition. All acquired branches are now operating on Herc’s network, including enterprise resource planning, fleet management, pricing, CRM, logistics, business intelligence, and its ProControl customer platform.

Image: Herc Rentals

“Our combined team now operates from a single, unified dashboard,” said Larry Silber, Herc president and chief executive officer. “This alignment is poised to drive efficiencies and position us for long-term market-share expansion.”

Total revenues were $1.3 billion compared to $965 million in the same period of 2024. Sales of rental equipment increased by $70 million during the quarter as the company sold fleet to improve mix and utilization.

Dollar utilization was 39.9% compared to 42.2% in the prior-year period, and direct operating expenses were $467 million, or 41.6% of equipment rental revenue, compared to 38.6% in the prior-year period. Depreciation of rental equipment rose 41% to $246 million, while selling, general and administrative expenses increased to $166 million, or 14.8% of equipment rental revenue.

Transaction expenses were $38 million compared to $3 million a year earlier, primarily related to fleet retitling costs, consulting, and professional fees from the H&E acquisition. Interest expense was $134 million, up from $69 million last year, reflecting new debt facilities issued in June to fund the acquisition.

For the nine months ended Sept. 30, total revenues increased 21% to $3.17 billion, while adjusted EBITDA rose 13% to $1.3 billion.

Herc completed the sale of its Cinelease studio entertainment business on July 31 for initial cash consideration of $100 million. Proceeds were used to repay a portion of the company’s asset-based lending credit facility.

As of Sept. 30, Herc’s total fleet was approximately $9.6 billion at original equipment cost, with an average age of 45 months. Net rental equipment capital expenditures were $529 million for the first nine months of 2025, down from $555 million in the prior year.

The company reaffirmed its full-year 2025 guidance, excluding Cinelease, with equipment rental revenue expected between $3.7 billion and $3.9 billion, adjusted EBITDA between $1.8 billion and $1.9 billion, and gross capital expenditures between $900 million and $1.1 billion.

Herc also reported opening 17 greenfield locations during the first nine months of the year. Net debt was $8.2 billion at the end of the quarter, with net leverage at 3.8 times.

The company declared a quarterly dividend of $0.70 per share, paid on Sept. 5 to shareholders of record as of Aug. 22.