Herc Holdings Inc. (HRI) is a leading company in the equipment rental industry, primarily engaged in renting out a broad portfolio of equipment. The company generates revenue through its equipment rental services and also sells both used and new equipment, parts, and supplies. HRI's operations are supported by ancillary services such as delivery, rental protection programs, and fueling charges, making it a comprehensive provider in its field.
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Equipment Rental - Offers a wide range of equipment for rent, including aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, lighting, trench shoring, and studio and production equipment, which forms the core of its business.
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Sales of Rental Equipment - Sells equipment that has been previously used in its rental fleet, providing customers with cost-effective options for acquiring equipment.
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Sales of New Equipment, Parts, and Supplies - Provides new equipment and related consumables, catering to customers who prefer new products.
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Service and Other Revenue - Includes services such as training and labor provided to customers, enhancing the overall customer experience.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Lawrence H. Silber ExecutiveBoard | President and Chief Executive Officer | Director at Hayward Holdings, Inc. | Joined HRI in 2015 as CEO; previously interim CEO at SMTC Corporation; leads HRI's strategy to be the supplier, employer, and investment choice in its industry. | View Report → |
Aaron D. Birnbaum Executive | Senior Vice President and Chief Operating Officer | None | Over 30 years at HRI; led operational improvements, safety initiatives, and strategic planning; achieved a Total Recordable Incident Rate of 0.87 in 2024. | |
Christian J. Cunningham Executive | Senior Vice President and Chief Human Resources Officer | None | Joined HRI in 2014; oversees all HR matters; previously held HR leadership roles at DFC Global, Sunoco, ARAMARK, and Scholastic. | |
Mark Humphrey Executive | Senior Vice President and Chief Financial Officer | None | Joined HRI in 2017; previously VP and Chief Accounting Officer; played a key role in financial leadership and operational execution. | |
S. Wade Sheek Executive | Senior Vice President, Chief Legal Officer, and Secretary | None | Joined HRI in 2019; previously General Counsel at Republic Airways and Deputy General Counsel at Allegion plc. | |
Tamir Peres Executive | Senior Vice President and Chief Information Officer | None | Joined HRI in 2017; oversees IT group; previously CIO at Sunoco Logistics and held IT leadership roles at Sunoco, Kulicke & Soffa, and Ernst & Young. | |
James H. Browning Board | Director and Chair of the Audit Committee | Director at Texas Capital Bancshares | Director since 2016; retired KPMG Partner; brings extensive financial and audit expertise. | |
Jean K. Holley Board | Director | Director at Accord Financial Corp. | Director since 2017; expertise in IT, cybersecurity, and digital transformation; recipient of Georgia CIO ORBIE Lifetime Achievement Award. | |
Michael A. Kelly Board | Director and Chair of the Compensation Committee | Director at Mettler-Toledo International, Inc. | Director since 2016; former EVP at 3M; expertise in strategic planning and operational matters. | |
Patrick D. Campbell Board | Non-Executive Chairman of the Board | Director at Newell Brands Inc. and Stanley Black & Decker, Inc. | Director since 2016; retired CFO of 3M Company; brings expertise in financial management, capital markets, and global business operations. | |
Rakesh Sachdev Board | Director | Director at Regal Rexnord Corporation, Axalta Coating Systems Ltd., and Edgewell Personal Care Company | Director since 2021; former CEO of Platform Specialty Products and Sigma Aldrich; expertise in financial management and global business operations. | |
Shari L. Burgess Board | Director | None | Director since 2020; retired VP and Treasurer at Lear Corporation; expertise in corporate finance and diversity initiatives. |
- With the anticipated slowdown in local market new starts and the acknowledgment that increasing fleet utilization by 200-300 basis points is a significant challenge, how do you plan to achieve your rental revenue growth guidance of 4-6% for 2025 given the modest expected fleet growth?
- As you become a cash taxpayer in 2025 with an expected increase in tax payments of over $100 million, how will this impact your free cash flow and capital allocation priorities, especially regarding M&A opportunities where asset valuations haven't adjusted to the softening market?
- Given that specialty rentals showed stronger growth than your core business in 2024 and you plan to invest more in specialty equipment, can you elaborate on how your specialty rental revenue growth compares to larger peers and what strategies you're implementing to enhance your competitive position in this segment?
- Considering industry consolidation, including larger peers acquiring smaller competitors, what is your strategy to protect or increase your market share in key states, and how might such consolidation affect your competitive landscape and strategic plans?
- With the decision to discontinue specific rental rate disclosures and given the ongoing equipment fleet inflation, how confident are you in your ability to achieve the positive rental rate growth necessary to offset inflation over the equipment life cycle and meet the pricing expectations embedded in your 2025 guidance?
Research analysts who have asked questions during HERC HOLDINGS earnings calls.
Mircea Dobre
Robert W. Baird & Co.
4 questions for HRI
Steven Ramsey
Thompson Research Group
4 questions for HRI
Jerry Revich
Goldman Sachs Group Inc.
3 questions for HRI
Kenneth Newman
KeyBanc Capital Markets
3 questions for HRI
Neil Tyler
Redburn Atlantic
3 questions for HRI
Robert Wertheimer
Melius Research
3 questions for HRI
Sherif El-Sabbahy
Bank of America
3 questions for HRI
Tami Zakaria
JPMorgan Chase & Co.
3 questions for HRI
Kyle Menges
Citigroup
2 questions for HRI
Alec M
JPMorgan Chase & Co.
1 question for HRI
Brian Sponheimer
Gabelli Funds
1 question for HRI
Ken Newman
KeyBanc Capital Markets
1 question for HRI
Rob Wertheimer
Melius Research LLC
1 question for HRI
Steven Fisher
UBS
1 question for HRI
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company is one of the large national competitors in the equipment rental industry. It recently announced an agreement to acquire H&E Equipment Services, Inc., which will further enhance its ability to compete in the industry. | |
Ashtead Group plc's Sunbelt Rentals | This brand is part of the large national companies competing in the equipment rental industry. |
This company is one of the large national competitors in the equipment rental industry. It is also involved in an acquisition agreement with United Rentals, Inc.. | |
Aggreko | A global competitor in the power generation rental markets in which the company also participates. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
H&E Equipment Services, Inc. | 2025 | H&E shareholders will receive $78.75 in cash and 0.1287 shares per share, valuing each H&E share at $104.89, with the two‐step tender offer/merger process expected to deliver 14.1% ownership and $300M in annual EBITDA synergies by year three, positioning Herc as the 3rd largest rental firm in North America. |
Otay Mesa Sales | 2024 | Completed on July 16, 2024, for approximately $273M (funded through cash and a senior secured credit facility), this deal acquired a full‐service equipment rental company serving key markets in San Diego, Phoenix, and Yuma, with detailed purchase price allocation and initial revenue contributions noted. |
Cloverdale Equipment Company | 2022 | Acquired on April 19, 2022 for about $178.2M using available cash and credit facility; the deal included key assets such as $125.2M in rental equipment, intangible assets, and $47.1M of goodwill, contributing $27.4M in revenue and $5.4M in pre-tax income. |
Southern Equipment Rental | 2022 | Acquired as part of a group in early 2022 adding three locations, though no specific financial or operational details were disclosed. |
Harris Diversified, LLC | 2022 | Completed in early 2022 alongside two other companies, this acquisition’s details are limited to its inclusion in the group transaction, with no additional financial or strategic specifics provided. |
Kilowatt Boy, Inc. | 2022 | Acquired in early 2022 as part of a trio of acquisitions that added three locations, but no specific details on deal value, structure, or strategic rationale were provided. |
All Trade Rentals, Inc. | 2022 | Completed in the second quarter of 2022 as one of five companies adding a total of five locations; no detailed financial, operational, or strategic information about the deal is disclosed. |
Absolute Rental & Supply, Inc. | 2022 | Acquired in Q2 2022 as part of a group of five acquisitions, with no further details on purchase price, structure, or strategic rationale provided. |
Single Source Rentals Ltd. | 2022 | Completed in Q2 2022, this acquisition was one of five that added five locations; specific deal terms or strategic details were not disclosed. |
Kropp Equipment, Inc. | 2022 | Acquired in the second quarter of 2022 as part of a group transaction adding five locations, but no detailed financial or operational specifics were provided. |
Colvin's Inc. | 2022 | This Q2 2022 acquisition was one among five that added five locations, with limited public details regarding financial metrics or strategic fit. |
All Star Rents | 2022 | Completed in the third quarter of 2022 as one of seven acquisitions (collectively adding 12 locations), though no specifics on purchase price, deal structure, or strategic rationale were shared. |
High River Rentals, Inc. | 2022 | Acquired in Q3 2022 as part of the seven-company group which expanded operations by 12 locations, with no further details on the financial or strategic aspects provided. |
Longhorn Car-Truck Rental, Inc. | 2022 | Completed in Q3 2022 as one of the seven acquisitions adding to 12 new locations overall, but specific transaction details regarding price or strategic rationale were not disclosed. |
Avalanche Equipment, LLC | 2022 | Acquired in the third quarter of 2022 as part of a seven-company group that expanded the network by 12 locations, with no detailed deal terms or strategic insights provided. |
Portable Air II, LLC | 2022 | This Q3 2022 acquisition was included in a group that added 12 locations overall; however, no specific information on deal value, structure, or business fit was shared. |
Golf Tournaments, Inc. | 2022 | Acquired during Q3 2022 as one of seven companies contributing to a 12-location expansion, with no detailed financial or operational specifics disclosed. |
Shore-Tek, Inc. | 2022 | Completed in Q3 2022 as part of the collective acquisition of seven companies (adding 12 locations), though no specific details on purchase price, integration, or strategic rationale were provided. |
Recent press releases and 8-K filings for HRI.
- Herc Holdings Inc. has nearly completed the integration of the H&E Equipment Services Inc. acquisition, which closed on June 2, 2025, adding approximately 165 locations. The company expects to achieve $125 million in cost synergies over a two-year period, with 50% on a run rate basis by the end of 2025.
- Post-acquisition, Herc's leverage is at 3.8x, and it aims to return to its 2x to 3x leverage profile by 2027, prioritizing integration of the acquired branches over new tuck-in acquisitions or greenfields until then.
- The company observes a stable but soft local market influenced by interest rates, while its national account and mega project business remains very strong with a 30 to 36 month pipeline. An additional 75 basis points of rate cuts are anticipated to stimulate local market growth.
- The H&E acquisition temporarily reduced Herc's specialty fleet percentage from 20% to 16%, but the company plans to increase this back to 20% and eventually 25% longer-term, utilizing the new locations to expand its specialty offerings.
- Herc Holdings (HRI) has completed the integration of the H&E Equipment Services Inc. acquisition, with all 165 locations on the Herc platform as of the Monday following the September 11, 2025 document date.
- The company expects to achieve 50% of the publicized $125 million cost synergies on a run-rate basis by the end of 2025.
- HRI anticipates returning to its target 2x to 3x leverage profile by 2027, prioritizing the integration of acquired branches over tuck-in acquisitions and greenfields until then.
- The market exhibits a bifurcation in demand, with local markets being soft but stable, primarily due to interest rates, while national accounts and mega projects remain very strong with visibility for the next 30-36 months.
- The acquisition enables HRI to accelerate its specialty business growth, with plans to increase the specialty fleet percentage from 16% post-acquisition back to 20% and eventually to 25% longer term, which is expected to improve dollar yield and margin profile.
- Herc Holdings Inc. (HRI) completed the acquisition of H&E Equipment Services Inc. on June 2nd, adding 165 locations and achieving full integration by the week of September 11, 2025.
- The acquisition is expected to generate $125 million in cost synergies over two years, with 50% of the run rate anticipated by the end of 2025.
- HRI aims to return to its 2x to 3x leverage profile by 2027, pausing tuck-in acquisitions and greenfield expansions to focus on integrating the acquired branches.
- The company notes soft but stable local market demand, primarily influenced by interest rates, contrasting with very strong national account and mega project activity with visibility for the next 30 to 36 months.
- HRI plans to increase its specialty fleet percentage from the current 16% (post-acquisition) back to 20% and eventually 25% long-term, which is expected to improve dollar yield and margin profile.
- Herc Holdings Inc. completed the acquisition of H&E Equipment Services Inc. on June 2, 2025, adding approximately 165 locations, with full integration onto the Herc platform expected by September 16, 2025.
- The company projects $125 million in cost synergies from the H&E acquisition over two years, with 50% on a run-rate basis by the end of 2025. This integration is key to returning to a 2x-3x leverage profile by 2027, leading to a temporary pause in tuck-in acquisitions and greenfield developments.
- Herc's specialty fleet, which was 20% of its fleet before the acquisition and 16% combined after, is targeted to reach 25% longer term, leveraging the H&E acquisition to accelerate specialty locations from 150 to 200.
- Management observes that local markets are soft but stable, requiring an additional 75 basis points in interest rate cuts to stimulate growth, whereas the mega project business remains very strong with visibility into 30-36 months of robust activity.
- Herc Rentals released its 2025 Corporate Citizenship Report, highlighting progress on environmental, social, and governance (ESG) initiatives throughout 2024 and early 2025.
- The company exceeded its 2030 goal by achieving a 26.5% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions intensity from its 2019 baseline, and also achieved a 23.3% reduction in non-toxic landfill waste from the same baseline.
- Herc Rentals reported a Total Recorded Incident Rate (TRIR) of 0.87, which is better than the industry benchmark of 1.0, and a voluntary turnover rate of 11.4%, which is lower than average comparable industries.
- In June 2025, Herc Rentals acquired H&E Rentals, adding over 160 branches and more than 2,500 team members to its network, bringing the total locations to 622 across North America and resulting in 2024 pro forma total revenues of approximately $5.1 billion.
- Herc Holdings reported a 13.7% increase in GAAP rental revenue and a 12.8% increase in adjusted EBITDA to $406 million for Q2 2025. The company recorded an adjusted net income of $56 million for the quarter.
- The acquisition of H&E Equipment Services was completed during Q2 2025, with integration activities underway, including technology integration expected to be completed by September. Legacy H&E branches experienced a rental revenue decline of approximately 15% in Q2.
- For the full year 2025, Herc Holdings introduced combined guidance (excluding Cinelese), projecting equipment rental revenue between $3.7 billion and $3.9 billion and adjusted EBITDA between $1.8 billion and $1.9 billion, implying an adjusted EBITDA margin of 42% to 43%.
- The company expects to achieve 50% of its $125 million EBITDA cost synergy run rate target by year-end 2025, with a gross revenue synergy target of $350 million over three years from the H&E acquisition.
- Herc Holdings Inc. has announced a proposed private offering of senior unsecured notes with an aggregate principal amount of $2,750 million, to be issued by its wholly owned subsidiary, Herc Holdings Escrow, Inc.
- The offering comprises notes due in 2030 and 2033 with coupon rates of 7.000% and 7.250% respectively, with terms to be determined at pricing and an expected closing around June 2, 2025.
- The net proceeds, along with additional financing, will be used to finance the proposed acquisition of H&E Equipment Services, Inc., fund the redemption of H&E's existing indebtedness, and cover related fees and expenses.
- Resilient Q1 Performance: Delivered $861M in total revenue (with approx 5% revenue growth excluding Cinelease and $739M in equipment rental revenue), with adjusted EBITDA of $339M (39.4% margin) despite a net loss of $(18)M due to H&E acquisition transaction costs .
- Strategic Acquisition: Executed a merger agreement to acquire H&E Equipment Services, adding 160 U.S. branch locations with integration planning underway .
- Solid Capital Management: Generated $49M in free cash flow and maintained a current leverage ratio of 2.5x, targeting deleveraging to a range of 2x–3x within 24 months .
- Expansion & Innovation: Launched 3 new greenfield branches to enhance fleet mix and technology .
- Positive Outlook: Emphasized operational improvements, disciplined capital investments, and enhanced dividend guidance for 2025 .
- Herc Holdings Inc. has commenced a tender offer to acquire all outstanding shares of H&E Equipment Services’ common stock, offering $78.75 in cash and 0.1287 shares of Herc common stock per H&E share.
- The tender offer, which started on March 19, 2025, is set to expire on April 15, 2025, subject to customary conditions including a minimum number of shares tendered and regulatory approvals.
- Filed on March 11, 2025, the company released an 8-K report detailing a significant event under SEC requirements, including updated corporate contact and regulatory filing information.
- The filing highlights Amendment No. 3 to the Credit Agreement, aimed at refinancing outstanding obligations and addressing key financial covenants and credit facility terms for ongoing working capital needs.