February 18, 2024
Herc Holdings
, Bonita Springs, Fla., reported a record $831 million in total revenue during the 2023 fourth quarter, up 6 percent compared to $786 million the year before. The year-over-year increase of $45 million was related primarily to an increase in equipment rental revenue of $35 million. Sales of rental equipment increased by $11 million during the period.
Equipment rental revenue was $748 million in the 2023 fourth quarter compared to $713.1 million the year before. Total revenues for the 2023 full year were a record $3.28 billion, up 20 percent compared to $2.74 billion in 2022. The year-over-year increase of $542 million was related primarily to an increase in equipment rental revenue of $318 million. Sales of rental equipment increased $221 million compared to the prior-year period.
Equipment rental revenue was $2.87 billion compared to $2.55 billion in 2022.
“We closed out 2023 with positive operating momentum, contributing to another year of double-digit revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) growth. Inflationary pressures were successfully managed through revenue initiatives, and we maintained cost discipline while continuing to invest in our business,” said Larry Silber, president and CEO.
“I couldn’t be prouder of what our team accomplished last year. They demonstrated tremendous operational strength and agility throughout 2023, successfully leveraging our prominent industry position to capitalize on stimulus and secular opportunities, and to continue to scale our operations for profitable share growth while expanding margins.
“For 2024, we expect to deliver 7-10 percent organic rental-revenue growth and 6-9 percent higher adjusted EBITDA year over year, outpacing industry growth forecasts and driving incremental margin expansion as we enhance asset efficiency for greater operating leverage and roll out our new E3 Operating System. Our guidance excludes our Cinelease studio entertainment business, which is currently being held for sale,” Silber continued. “We see continued market strength and remain confident that our diligent focus on our strategic priorities — including investing in our classic and specialty fleet, expanding our urban-market presence through greenfield locations and strategic acquisitions, enhancing our industry-leading digital offering, and delivering an exceptional customer experience — will improve performance in the near term and deliver value creation over the long term.”
The company increased its full year 2024 adjusted EBITDA guidance range to $1.55 billion to $1.60 billion. Adjusted EBITDA increased 18 percent to $1.45 billion in 2023 compared to $1.23 billion in the prior-year period.
Herc Holdings added 42 new locations through mergers and acquisitions and greenfield openings.
