Herc Holdings Reports Full Year 2025 Results and Announces 2026 Full Year Guidance

BONITA SPRINGS, Fla.--( BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter and full year ended December 31, 2025.

“2025 was a pivotal year for Herc Rentals. In June, we completed the largest acquisition in our industry, bringing together two high‑quality equipment rental operators to create significant long‑term strategic and financial value,” said Larry Silber, chief executive officer.

“We are extremely pleased with the pace and execution of the integration, and I want to thank Team Herc for their dedication and hard work through this period of change. In just six months, we successfully migrated technology systems and data in record time, completed sales and territory optimization initiatives, aligned the fleet mix by market, and achieved run-rate cost synergies ahead of our planned timeline. We are now finalizing the branch network optimization and continue to see strong collaboration across the combined organization as our cultures align.

“Heading into the 2026 spring/summer construction season, our larger platform positions us to leverage scale‑driven network benefits and industry-leading technology, and begin ramping revenue synergies. Combined with increased participation in mega projects and favorable secular trends in specialty equipment, this sets the stage for above‑market growth in 2026,” he said.

2025 Fourth Quarter Financial Results

2025 Full Year Financial Results

Rental Fleet

Year Ended December 31,

2025

2024

Rental equipment expenditures

1,097

1,048

Proceeds from disposal of rental equipment

(448

)

(288

)

Net rental equipment capital expenditures

649

760

Disciplined Capital Management

(1) Current period net leverage is calculated using pro forma trailing twelve month adjusted EBITDA including the standalone, pre-acquisition results of H&E.

2026 Outlook

The Company is announcing its full year 2026 equipment rental revenue, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges.

Equipment rental revenue:

$4.275 billion to $4.4 billion

Adjusted EBITDA:

$2.0 billion to $2.1 billion

Net rental equipment capital expenditures:

$500 million to $800 million

Gross capex:

$800 million to $1.1 billion

As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2026 by investing in its fleet, optimizing its existing fleet, capitalizing on recent acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.

Earnings Call and Webcast Information

Herc Holdings' fourth quarter 2025 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at https://registrations.events/directory/international/itfs.html, using the access code: 1216831. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company.

Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com. The press release and presentation slides for the call will be posted to this section of the website prior to the call.

A replay of the conference call will be available via webcast on the Company website at IR.HercRentals.com, where it will be archived for 12 months after the call.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 602 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. We employ approximately 9,600 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.

Certain Additional Information

In this release we refer to the following operating measures:

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to integrate the acquisition of H&E Equipment Services, Inc. into our business and our ability to realize all the anticipated benefits of the transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Information Regarding Non-GAAP Financial Measures

In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has provided certain information in this release that is not calculated according to GAAP (“non-GAAP”), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share, free cash flow and adjusted free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release.

HERC HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Revenues:

Equipment rental

1,039

839

3,770

3,189

Sales of rental equipment

147

509

311

Sales of new equipment, parts and supplies

Service and other revenue

Total revenues

1,209

951

4,376

3,568

Expenses:

Direct operating

429

324

1,602

1,291

Depreciation of rental equipment

243

180

856

679

Cost of sales of rental equipment

122

418

224

Cost of sales of new equipment, parts and supplies

Selling, general and administrative

153

120

564

469

Transaction expenses

199

Non-rental depreciation and amortization

224

127

Interest expense, net

134

416

260

Loss on assets held for sale

—

194

Other income, net

)

Total expenses

1,192

994

4,375

3,277

Income (loss) before income taxes

(43

)

291

Income tax benefit (provision)

)

—

(80

)

Net income (loss)

(46

)

211

Weighted average shares outstanding:

Basic

33.3

28.4

31.3

28.4

Diluted

33.4

28.4

31.4

28.5

Earnings (loss) per share:

Basic

0.72

(1.62

)

0.03

7.43

Diluted

0.72

(1.62

)

0.03

7.40

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HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

December 31, 2025

December 31, 2024

ASSETS

Cash and cash equivalents

Receivables, net of allowances

769

589

Prepaid expenses

Other current assets

Current assets held for sale

—

Total current assets

956

776

Rental equipment, net

5,880

4,225

Property and equipment, net

868

554

Right-of-use lease assets

1,489

852

Intangible assets, net

1,665

572

Goodwill

2,873

670

Other long-term assets

Long-term assets held for sale

—

220

Total assets

13,776

7,877

LIABILITIES AND EQUITY

Current maturities of long-term debt and financing obligations

Current maturities of operating lease liabilities

Accounts payable

337

248

Accrued liabilities

305

239

Current liabilities held for sale

—

Total current liabilities

730

562

Long-term debt, net

8,021

4,069

Financing obligations, net

101

Operating lease liabilities

1,479

842

Deferred tax liabilities

1,446

800

Other long-term liabilities

Long-term liabilities held for sale

—

Total liabilities

11,828

6,481

Total equity

1,948

1,396

Total liabilities and equity

13,776

7,877

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HERC HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Year Ended December 31,

2025

2024

Cash flows from operating activities:

Net income

211

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of rental equipment

856

679

Depreciation of property and equipment

109

Amortization of intangible assets

115

Amortization of deferred debt and financing obligations costs

Loss on extinguishment of debt

—

Stock-based compensation charges

Impairment

—

Provision for receivables allowances

Loss on assets held for sale

194

Deferred taxes

)

Gain on sale of rental equipment

(91

)

(87

)

Other

Changes in assets and liabilities, net of effects from acquisitions:

Receivables

(46

)

(62

)

Other assets

)

(26

)

Accounts payable

Accrued liabilities and other long-term liabilities

(86

)

Net cash provided by operating activities

1,085

1,225

Cash flows from investing activities:

Rental equipment expenditures

(1,097

)

(1,048

)

Proceeds from disposal of rental equipment

448

288

Non-rental capital expenditures

(157

)

(161

)

Proceeds from disposal of property and equipment

Acquisitions, net of cash acquired

(4,257

)

(600

)

Proceeds from disposal of business, net

—

Net cash used in investing activities

(4,944

)

(1,511

)

Cash flows from financing activities:

Proceeds from issuance of long-term debt

4,661

800

Repayments of long-term debt

(1,200

)

—

Proceeds from revolving lines of credit and securitization

4,585

2,008

Repayments on revolving lines of credit and securitization

(4,092

)

(2,399

)

Principal payments under finance lease and financing obligations

(22

)

(19

)

Dividends paid

(87

)

(77

)

Other financing activities, net

(18

)

(14

)

Net cash provided by financing activities

3,827

299

Effect of foreign exchange rate changes on cash and cash equivalents

)

Net change in cash and cash equivalents during the period

(31

)

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

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HERC HOLDINGS INC. AND SUBSIDIARIES

SUPPLEMENTAL SCHEDULES

EBITDA AND ADJUSTED EBITDA RECONCILIATIONS

Unaudited

(In millions)

EBITDA and adjusted EBITDA–EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction expenses, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business, impact of the fair value mark-up of acquired fleet, impact of the studio entertainment business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments.

Adjusted EBITDA Margin–Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio.

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Net income (loss)

(46

)

211

Income tax provision (benefit)

)

—

Interest expense, net

134

416

260

Depreciation of rental equipment

243

180

856

679

Non-rental depreciation and amortization

224

127

EBITDA

470

239

1,497

1,357

Non-cash stock-based compensation charges

Transaction expenses

199

Loss on assets held for sale

—

194

Impact of the fair value mark-up of acquired fleet (1)

—

Other (2)

Adjusted EBITDA

519

438

1,818

1,583

Total revenues

1,209

951

4,376

3,568

Adjusted EBITDA

519

438

1,818

1,583

Adjusted EBITDA margin (3)

42.9

46.1

41.5

44.4

(1) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold. Prior year amounts have not been restated as the adjustments were immaterial.

(2) Other consists of restructuring charges, impairment and spin-off costs.

(3) Adjusted EBITDA margin excluding revenue from the Cinelease studio entertainment business is 41.9% for the year ended December 31, 2025.

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HERC HOLDINGS INC. AND SUBSIDIARIES

SUPPLEMENTAL SCHEDULES

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE

Unaudited

(In millions)

Adjusted Net Income and Adjusted Earnings Per Diluted Share–Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, gain (loss) on the disposal of a business, merger related intangible asset amortization, impact on depreciation of acquired fleet, impact of the fair value mark up of acquired fleet, income (loss) of the studio entertainment business, and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business.

Three Months Ended

December 31,

Year Ended December 31,

2025

2024

2025

2024

Net income (loss)

(46

)

211

Transaction expenses

199

Loss on assets held for sale

—

194

Merger related intangible asset amortization (1)

—

Impact on depreciation related to acquired fleet (2)

(15

)

—

(45

)

—

Impact of the fair value mark-up of acquired fleet (3)

—

Other (4)

Tax impact of adjustments above (5)

(16

)

(50

)

(79

)

(53

)

Adjusted net income (6)

102

239

367

Diluted shares outstanding

33.4

28.5

31.4

28.5

Adjusted earnings per diluted share

2.07

3.58

7.61

12.88

(1) Reflects the amortization of the intangible assets acquired in major acquisitions completed since the beginning of 2024.

(2) Reflects the impact of extending the useful lives of rental equipment acquired in major acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.

(3) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold.

(4) Other consists of restructuring charges, impairment, pre-tax impact of the Cinelease studio entertainment business, and spin-off costs.

(5) The tax rate applied for all adjustments, excluding studio entertainment pretax loss, is 25.0% in the three months and year ended December 31, 2025 and 25.5% in the three months and year ended December 31, 2024 and reflects the statutory rates in the applicable entities. The tax rate applied for the studio entertainment adjustments is 24.2% in the year ended December 31, 2025 and reflects the stand-alone annual effective tax rate.

(6) Prior year amounts for items (1), (2), (3) and (4) above have not been restated as the adjustments were immaterial.

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HERC HOLDINGS INC. AND SUBSIDIARIES

SUPPLEMENTAL SCHEDULES

FREE CASH FLOW

Unaudited

(In millions)

Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.

Year Ended December 31,

2025

2024

Net cash provided by operating activities

1,085

1,225

Rental equipment expenditures

(1,097

)

(1,048

)

Proceeds from disposal of rental equipment

448

288

Net rental equipment expenditures

(649

)

(760

)

Non-rental capital expenditures

(157

)

(161

)

Proceeds from disposal of property and equipment

Free cash flow

299

314

Acquisitions, net of cash acquired

(4,257

)

(600

)

Proceeds from disposal of business, net

—

Increase in net debt, excluding financing activities

(3,859

)

(286

)

Free cash flow

299

Cash paid for transaction expenses

222

Adjusted free cash flow

521

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