Herc Holdings, Bonita Springs, Fla., reported a record $786 million in total revenue during the 2022 fourth quarter, up 36 percent compared to $578 million the year before. The year-over-year increase of $208 million was related primarily to an increase in equipment rental revenue of $170.7 million. Sales of rental equipment increased by $35.2 million during the year.
Equipment rental revenue was a company record $713.1 million in the 2022 fourth quarter, up 31.5 percent compared to $542.4 million the year before. Total revenues for the 2022 full year were $2.74 billion, up 32.1 percent compared to $2.07 billion in 2021. The year-over-year increase of $665.7 million was related primarily to an increase in equipment rental revenue of $641.1 million. Sales of rental equipment increased by $12.6 million during the period.
Equipment rental revenue was $2.55 billion, up 33.6 percent compared to $1.91 billion in 2021.
“From beginning to end, 2022 was an exceptionally strong year for us, with record performance across key financial metrics. Operating momentum and market share growth continued in every region driven by robust demand, improved pricing, strategic fleet investments, end market diversity, and greater branch-network efficiencies,” said Larry Silber, president and CEO.
“Through the hard work of the last several years, we are better positioned than ever to capitalize on a variety of growth avenues, including local market penetration, increased rentals of higher-margin specialty equipment, and trends relating to the multi-year fiscal stimulus and re-shoring mega projects. As a market leader with a strong reputation, broad-based capabilities and service solutions, in 2023 we expect to continue to outpace industry expansion and capitalize on operating leverage while laying a foundation for long-term, profitable growth,” Silber continued. “The impressive progress we’re making is a direct result of the dedication and relentless execution of the entire Herc team. I want to thank them for their outstanding work and continuing commitment to our growth initiatives.”
The company increased its full year 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance range to $1.45 billion to $1.55 billion, compared to the previous guidance range of $1.08 billion to $1.18 billion.
“As a leader in an industry where scale matters, we expect to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2023 by investing in our fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross selling our diversified product portfolio,” said Silber.