Seth Weber's questions to HEES leadership • Q4 2023
Question
Asked about the 2024 CapEx guidance, whether it reflected a pull-forward of spending, and its ability to support utilization levels. Also inquired about the rental rate outlook for 2024, free cash flow expectations, and guidance for used equipment sales margins.
Answer
The company confirmed some CapEx was pulled forward into Q4 2023. They anticipate utilization being pressured in H1 but showing positive year-over-year improvement in H2. Rental rates are expected to be positive but moderate from recent years. Free cash flow is expected to be positive for 2024. Used equipment sales margins are guided to be 50%+, with Q1 potentially closer to 60%.