Herc Holdings Q4 revenue misses estimates

Overview

• Equipment rental firm's Q4 revenue rose 27% but missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company advancing integration of largest industry acquisition with strong execution

Outlook

• Company expects 2026 equipment rental revenue between $4.275 bln and $4.4 bln

• Herc Holdings forecasts 2026 adjusted EBITDA between $2.0 bln and $2.1 bln

• Company projects 2026 net rental equipment capex of $500 mln to $800 mln

Result Drivers

• ACQUISITION IMPACT - Integration of H&E acquisition is advancing well, contributing to strategic and financial value

• REVENUE INCREASE - Equipment rental revenue rose 24%, driven by sales of rental equipment and fleet optimization

• EXPENSES AND UTILIZATION - Higher operating expenses due to acquisition redundancies and lower dollar utilization from fleet optimization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Herc Holdings Inc is $187.00, about 8% above its February 13 closing price of $173.12

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw6HB2dwa

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