Herc Holdings Inc. reported first‑quarter 2026 revenue of $1.14 billion, up 32‑33% from $861 million in Q1 2025, and a GAAP net loss of $24 million, or –$0.72 per share. The loss reflects higher operating expenses and a one‑time restructuring charge tied to the integration of H&E Equipment Services.
Adjusted earnings per share rose to $0.21, beating the consensus estimate of a loss of $0.12 to –$0.21—a beat of $0.33. The strong adjusted EPS was driven by disciplined cost management and a favorable mix shift toward higher‑margin equipment‑rental revenue, which totaled $981 million, up 33% year‑over‑year.
Equipment‑rental revenue, the core business, grew 33% to $981 million, while operating expenses increased 18% to $1.07 billion, largely due to higher depreciation, amortization, and interest costs associated with the $5.3 billion H&E acquisition. Adjusted EBITDA margins held steady at 39.3%, indicating operational discipline amid integration costs.
Management reaffirmed its 2026 full‑year guidance, projecting equipment‑rental revenue of $4.275 billion to $4.4 billion and adjusted EBITDA of $2.0 billion to $2.1 billion. The unchanged outlook signals confidence that the integration of H&E will deliver synergies and that the company’s scale will support continued growth.
The results were well received by investors, with analysts noting the adjusted EPS beat and robust revenue growth as key drivers, while acknowledging that the net loss and higher debt levels remain short‑term headwinds that the company is actively managing through cost controls and synergy realization.
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