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Herc Holdings reports 25 percent increase in quarterly revenue

By Stephen Elliott

July 30, 2023

Herc Holdings quarterly resultsHerc Holdings, Bonita Springs, Fla., reported earning $802 million in total revenue during the 2023 second quarter, up 25 percent compared to $640 million in the 2022 second quarter. The year-over-year increase of $162 million was related to an increase in equipment rental revenue of $97 million. Sales of rental equipment increased by $64 million during the period. 

Equipment rental revenue for the second quarter was $702 million, up 16 percent compared to $605 million in the 2022 second quarter.  

“We continue to generate strong, double-digit growth as a result of sound strategies and an unmatched team of product and logistics experts that embody a customer-first mindset,” said Larry Silber, president and CEO. “In the second quarter, Team Herc increased equipment rental revenue by 16 percent on 7.8 percent higher pricing, despite continued supply chain inefficiencies and labor disruptions in the film and television industry, which has all but halted our studio entertainment business. Growth in national account revenue and local market expansion through acquisitions and greenfield locations drove rental revenue higher, while strong returns on fleet sales represented an incremental benefit to total revenue. This, coupled with cost efficiencies, supported a 24 percent increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) year over year.” 

Silber said the company’s non-residential and industrial markets are healthy and growing with outsized opportunities coming from federally-funded, large-scale infrastructure and mega projects. 

“The favorable market environment coupled with our expanding branch network, broad selection of premium equipment, leading customer experiences, comprehensive fleet management services and advanced technologies position us to continue to capture above-market growth in 2023 and over the long term,” said Silber. 

For the first half of the year, total revenue was $1.54 billion, up 28 percent compared to $1.21 billion in the prior-year period. The year-over-year increase of $334 million was related to an increase in equipment rental revenue of $224 million. Sales of rental equipment increased $107 million during the first half of 2023. 

Equipment rental revenue for the first half of the year was $1.36 billion compared to $1.13 billion in the prior-year period.  

The company is reaffirming its full year 2023 adjusted EBITDA guidance range of $1.45 billion to $1.55 billion.