Stanley Elliott's questions to HEES leadership • Q2 2024
Question
Asked about the drivers of utilization trends during the quarter, the company's long-term free cash flow generation potential, and whether the focus on growth platforms will continue given the megaproject dynamic.
Answer
Management attributed lower utilization to a slowdown in small and mid-sized projects, not weather. While committed to growth initiatives (new stores, acquisitions) which will consume cash, they expect to be consistently free cash flow positive in 4-5 years. They will remain focused on disciplined growth to capture opportunities, especially from megaprojects.