You might also like
H&E Equipment Services, Inc. (HEES) is a leading equipment services company in the United States, specializing in the rental, sale, and servicing of construction and industrial equipment. The company operates a diverse rental fleet and serves a wide range of end markets through its extensive branch network. HEES also provides parts, maintenance, and repair services to support its equipment and customer needs.
- Equipment Rentals - Offers a wide range of construction and industrial equipment, including aerial work platforms, earthmoving equipment, and material handling equipment, available for short-term and long-term rental contracts.
- Sales of Rental Equipment - Sells used equipment from its rental fleet, enabling effective fleet management and providing customers with cost-effective equipment options.
- Sales of New Equipment - Distributes new construction equipment from nationally recognized manufacturers, catering to customers seeking the latest equipment solutions.
- Parts, Service, and Other Revenues - Supplies parts for its rental fleet and customer-owned equipment, while offering maintenance and repair services at its facilities and customer locations.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Bradley W. Barber ExecutiveBoard | Chief Executive Officer | Bradley W. Barber has served as the Chief Executive Officer and is a Director at H&E Equipment Services, Inc. since January 1, 2019. Previously, he held senior roles including President and Chief Operating Officer from November 2012 to December 31, 2018, contributing over 30 years of industry experience. | View Report → | |
John M. Engquist ExecutiveBoard | Executive Chairman of the Board | Board Director at Mohawk Industries, Inc; Director at LSU Foundation Board of Directors; Director at Franciscan Ministries of Our Lady Health System | John M. Engquist is the Executive Chairman of the Board at HEES since January 1, 2019. Previously, he served as the CEO and President of HEES, contributing significantly to the company’s growth. | |
John McDowell Engquist ExecutiveBoard | President and Chief Operating Officer | John McDowell Engquist is the President and Chief Operating Officer of H&E Equipment Services since January 2021. He joined HEES in June 2002 and previously served as Executive Vice President from January 2018 through January 2021. | ||
Leslie S. Magee Executive | Chief Financial Officer and Secretary | Leslie S. Magee has served as Chief Financial Officer and Secretary at HEES since September 2005 and previously served as acting Chief Financial Officer at H&E LLC from December 2004 through August 2005. | ||
Bruce C. Bruckmann Board | Director | Director of Mohawk Industries, Inc. ; Managing Director at Bruckmann, Rosser, Sherrill & Co., Inc. ; Director at a private company | Bruce C. Bruckmann has served as a Director of HEES since September 2005 and is classified as an independent director. He also chairs the Finance Committee and serves on the Corporate Governance and Nominating Committee. | |
Gary W. Bagley Board | Lead Independent Director | Owner and Manager of Bagley Family Investments, DBA Cougar Ridge Lodge | Gary W. Bagley has been an integral part of HEES since its formation in September 2005 , serving as Chairman until December 31, 2018 and now as Lead Independent Director since May 2023. He has extensive experience in the construction equipment industry, having previously held leadership roles including CEO and President at ICM Equipment Company L.L.C.. | |
Jacob Thomas Board | Director | CEO of Grain & Protein Technologies | Jacob Thomas has been a Director at H&E Equipment Services, Inc. since September 2022 and serves on the Corporate Governance and Nominating Committee. | |
Lawrence C. Karlson Board | Director | Lawrence C. Karlson has served as a Director at H&E Equipment Services since September 2005, and he is an independent director contributing through his roles on important committees. His extensive background in corporate governance includes prior board positions in other companies. | ||
Mary P. Thompson Board | Director | President of Titan Technologies, Inc.; Consultant at Bruckmann, Rosser, Sherrill & Co.; Board Member at Idaho Endowment Fund Investment Board | Mary P. Thompson is a Director at H&E Equipment Services, Inc. since May 2021. She previously served on the Board from September 2019 to March 2021 and holds key committee roles as Chairperson of the Corporate Governance and Nominating Committee and a member of the Audit Committee. | |
Patrick L. Edsell Board | Director of H&E Equipment Services, Inc. | Patrick L. Edsell has served as a Director of H&E Equipment Services, Inc. since May 2011. He currently serves as Chairman of the Audit Committee and is a member of the Compensation Committee, acting as an independent director and audit committee financial expert. | ||
Paul N. Arnold Board | Director | Paul N. Arnold has been a Director at HEES since November 2006, serving as Chairman of the Compensation Committee and a member of the ESG Committee. He is an independent director with extensive expertise in corporate governance and compensation matters. | ||
Suzanne H. Wood Board | Director | Senior Independent Director and Chair of the Audit Committee at RELX Group; Chair of the Audit Committee at Ferguson plc | Suzanne H. Wood has been a Director at HEES since March 2023 and serves as an audit committee financial expert and independent director. Previously, she held senior CFO and finance roles at companies such as Vulcan Materials Company and Ashtead Group plc. | |
Thomas J. Galligan III Board | Director | Director of a private company | Thomas J. Galligan III has served as an independent Director at H&E Equipment Services, Inc. since May 2011 and leads the ESG Committee while also serving on the Audit and Compensation Committees. Previously, he held several executive and board roles including positions at Papa Gino's Holdings Corp, Morse Shoe, Inc., and PepsiCo, Inc.. |
- Based on your remarks about the decline in rental rates being driven by the shift to mega projects, can you clarify how you plan to balance the volume benefits of mega projects against their negative impact on overall rental rate levels?
- Considering the misalignment of new branch costs and revenues that typically takes 12 to 18 months to unwind, what specific steps are you taking to accelerate the ramp-up period, especially in a softer local market?
- With utilization declining due to a slight oversupply of equipment across several product lines, how do you intend to adjust your fleet deployment or CapEx strategy to improve utilization without compromising long-term growth initiatives?
- Given the resilience seen in used equipment margins despite declining auction values, what measures are you implementing to sustain margins above 50% in the face of an aging fleet and underestimated retail or wholesale pressures?
- Amid mixed local market conditions and an expanding mega projects portfolio, how will you recalibrate your 2025 CapEx strategy to strike a balance between growth and replacement spending, and what contingency plans do you have if local demand remains weak?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company entered into an Agreement and Plan of Merger with this competitor, which involved a cash tender offer to purchase all issued and outstanding shares of the company's common stock at $92.00 a share. However, the agreement was terminated following a superior proposal from another competitor. | |
This competitor made a proposal to acquire all issued and outstanding shares of the company's common stock for a combination of cash and common stock, which was deemed a superior proposal compared to another competitor's offer. The company entered into an Agreement and Plan of Merger with this competitor, which is expected to close mid-year 2025. | |
Sunbelt Rentals | This competitor is mentioned as one of the national and multi-regional equipment rental companies serving many of the markets in which the company operates. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Lewistown Rentals | 2024 | Completed on May 1, 2024, the acquisition was executed for an aggregate cash consideration of approximately $33.7 million, funded through available cash and borrowings; key assets included rental equipment, accounts receivable, and customer relationships, resulting in net identifiable assets of about $24.87 million and $8.93 million of goodwill, while also expanding H&E’s branch network in Montana. |
Precision Rentals | 2024 | Completed on January 1, 2024, this deal involved a cumulative cash consideration of around $124.0 million (with an alternate figure of $117.6 million before adjustments) funded by cash and borrowings; the acquisition brought substantial identifiable assets totaling over $102 million, significant intangible assets including customer relationships valued at $33.7 million, and notable goodwill of $18.19 million, supporting strategic operational integration and fleet optimization. |
Giffin Equipment | 2023 | Completed on November 1, 2023, this acquisition involved key equipment rental assets and three branch locations in California, with a fleet valued at approximately $13.4 million; it strategically increased branch density to better serve the non-residential construction market across Central and Southern California. |
One Source Equipment Rentals, Inc. | 2022 | Completed on October 1, 2022, this acquisition was executed for a $130 million cash purchase price and expanded H&E’s geographic footprint with 10 new branch locations across the Midwest; it added substantial revenue and fleet assets (approximately $138 million in original equipment cost and $59 million in annual revenue) and was funded using available cash, fitting well with H&E's cultural and strategic expansion goals. |
Recent press releases and 8-K filings for HEES.
- H&E Rentals reported Q1 2025 revenues of $319.5 million, reflecting a 14.0% decline from Q1 2024, with total equipment rental revenues down 7.2%.
- The quarter resulted in a net loss of $6.2 million (adjusted net income of $1.2 million), impacted by weak local market demand and merger-related pressures.
- The company highlighted its branch expansion strategy with four new openings in Q1 and one planned for Q2, alongside an expected merger with Herc Rentals closing mid-year 2025.
- Key contact information includes CFO Leslie S. Magee (225-298-5261) and VP of Investor Relations Jeffrey L. Chastain (225-952-2308).
- Q4 2024 results showed revenues at $384.1 million (down slightly from $385.8 million) and net income at $32.8 million (down from $53.5 million), with an effective tax rate of 13.6%.
- Adjusted EBITDA declined by 5.6% to $174.9 million compared to $185.2 million in Q4 2023.
- Total equipment rental revenues increased by 0.8% to $319.4 million while sales of new equipment surged by 109% to $20.5 million, highlighting varied performance across segments.
- The company announced an agreement to be acquired by Herc Holdings Inc., aimed at combining over 120 years of industry experience.
- Definitive Merger Agreement: Herc Holdings and H&E Equipment Services have entered into a definitive merger, marking a significant acquisition move.
- Deal Terms: H&E shareholders will receive $78.75 in cash and 0.1287 Herc shares per share, totaling $104.89 per share.
- Equity Stake: Post-merger, H&E shareholders will own approximately 14.1% of the combined company.
- EBITDA Synergies: The transaction is expected to achieve approximately $300 million in EBITDA synergies, with annual benefits targeted by year three.
- Combined Financial Profile: The merger creates a combined entity with revenues of about $5.2 billion and EBITDA of roughly $2.5 billion, expanding the network to over 600 branches with an OEC of nearly $10 billion at closing.
- Financial Structure: Expected to close mid-2025, the deal will refinance H&E’s debt and is funded with $4.5 billion of new debt plus ABL support, targeting a reduction in pro forma net leverage from 3.8x to below 3.0x within 24 months.
- Strategic Positioning: The merger further solidifies Herc’s status as the third largest rental company in North America.