HERC HOLDINGS INC SEC 10-Q Report

HERC HOLDINGS INC, a leading equipment rental company, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant revenue growth driven by higher equipment rental and sales, alongside notable impacts from increased transaction and interest expenses. The company also detailed key operational activities, including a major acquisition and a strategic divestiture, positioning itself for future growth despite economic challenges.

Financial Highlights

Total Revenues: $1,304 million for the three months ended September 30, 2025, reflecting a significant increase from $965 million in the same period of 2024, driven by higher equipment rental and sales of rental equipment.

Total Revenues: $3,167 million for the nine months ended September 30, 2025, compared to $2,617 million in the same period of 2024, indicating strong growth in rental and sales activities.

Net Income (Loss): $30 million for the three months ended September 30, 2025, down from $122 million in the same period of 2024, impacted by increased transaction expenses and interest expenses.

Net Income (Loss): $(23) million for the nine months ended September 30, 2025, compared to $257 million in the same period of 2024, primarily due to higher transaction expenses related to acquisitions.

Basic Earnings (Loss) Per Share: $0.90 for the three months ended September 30, 2025, compared to $4.30 in the same period of 2024, reflecting the impact of increased expenses.

Diluted Earnings (Loss) Per Share: $0.90 for the three months ended September 30, 2025, compared to $4.28 in the same period of 2024.

Basic Earnings (Loss) Per Share: $(0.75) for the nine months ended September 30, 2025, compared to $9.05 in the same period of 2024, highlighting the effect of acquisition-related costs.

Diluted Earnings (Loss) Per Share: $(0.75) for the nine months ended September 30, 2025, compared to $9.02 in the same period of 2024.

Business Highlights

Revenue Segments: The company operates primarily in the equipment rental segment, offering a broad portfolio of equipment for rent, including aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, lighting, and trench shoring. The equipment rental revenue is recognized on a straight-line basis over the rental contract period.

Geographical Performance: The company operates in North America, with revenue from the United States representing approximately 95.1% and 94.2% of total revenue for the three and nine months ended September 30, 2025, respectively. This indicates a strong concentration of business within the U.S. market.

Acquisition of H&E Equipment Services, Inc.: On June 2, 2025, the company completed the acquisition of H&E, a full-service equipment rental company, for a total purchase price of $4.8 billion. This acquisition added scale and density in key rental regions and created cross-sell opportunities of specialty equipment to an expanded customer base.

Divestiture of Cinelease: On July 31, 2025, the company completed the divestiture of the Cinelease studio entertainment business for initial cash consideration of $100 million. The divestiture aligns with the company's strategy to focus on its core equipment rental business.

Seasonality: The business is seasonal, with lower demand for rental equipment in the winter months, particularly in the northern United States and Canada. The company experiences increased activity during the third and fourth quarters, which impacts fleet capacity and staffing levels.

Future Outlook: The company is well-positioned to operate effectively through the current economic environment, despite challenges such as elevated interest rates and economic uncertainty. The company expects to manage inflationary pressures and supply chain disruptions while maintaining a focus on capital allocation and operational efficiency.

SEC Filing: HERC HOLDINGS INC [ HRI ] - 10-Q - Oct. 28, 2025