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Herc Holdings (HRI) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Bank of New York Mellon Corp purchased a new stake in Herc Holdings Inc. (NYSE:HRI – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 600,352 shares of the transportation company’s stock, valued at approximately $86,054,000. Bank of New York Mellon Corp owned about 1.80% of Herc at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the business. Invesco Ltd. increased its stake in Herc by 11.2% in the third quarter. Invesco Ltd. now owns 4,123,437 shares of the transportation company’s stock valued at $481,040,000 after purchasing an additional 413,719 shares during the period. Norges Bank acquired a new stake in shares of Herc during the fourth quarter worth about $287,269,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Herc by 86,823.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,335,138 shares of the transportation company’s stock worth $198,108,000 after buying an additional 1,333,602 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Herc by 17.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,164,022 shares of the transportation company’s stock worth $115,872,000 after buying an additional 170,189 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Herc by 13.4% in the 1st quarter. First Trust Advisors LP now owns 873,338 shares of the transportation company’s stock valued at $86,941,000 after acquiring an additional 103,047 shares during the period. Institutional investors and hedge funds own 93.11% of the company’s stock.

Herc Trading Down 1.3% Shares of HRI stock opened at $156.01 on Wednesday. The business’s fifty day moving average price is $154.14 and its 200 day moving average price is $137.67. The firm has a market capitalization of $5.22 billion, a PE ratio of 106.13, a P/E/G ratio of 21.94 and a beta of 1.87. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.10 and a quick ratio of 1.10. Herc Holdings Inc. has a 1-year low of $88.45 and a 1-year high of $188.35.

Herc (NYSE:HRI – Get Free Report) last released its earnings results on Tuesday, July 28th. The transportation company reported $1.43 EPS for the quarter, beating analysts’ consensus estimates of $0.76 by $0.67. Herc had a return on equity of 10.33% and a net margin of 1.01%.The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter last year, the company earned $1.87 earnings per share. Herc’s quarterly revenue was up 20.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Herc Holdings Inc. will post 6.93 EPS for the current fiscal year. Herc Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd will be paid a $0.70 dividend. The ex-dividend date is Wednesday, September 2nd. This represents a $2.80 annualized dividend and a dividend yield of 1.8%. Herc’s dividend payout ratio (DPR) is 190.48%.

Wall Street Analysts Forecast Growth A number of research firms have weighed in on HRI. Zacks Research raised Herc from a “strong sell” rating to a “hold” rating in a research report on Tuesday, June 9th. Weiss Ratings raised Herc from a “sell (d+)” rating to a “hold (c)” rating in a report on Tuesday, July 28th. BNP Paribas Exane lifted their price objective on shares of Herc from $160.00 to $165.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Citigroup lifted their price objective on shares of Herc from $155.00 to $175.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company boosted their price objective on shares of Herc from $176.00 to $218.00 and gave the company an “overweight” rating in a research note on Monday, August 17th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Herc has a consensus rating of “Moderate Buy” and an average price target of $183.00.

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Herc Profile (Free Report)

Herc Holdings Inc (NYSE: HRI) operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company’s fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

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On August 28, 2026, Herc Holdings Inc HRI shares fell 3.1% to a current price of $150.60. This decline comes amid a 52-week price range of $88.45 to $188.35, reflecting a volatile trading environment for the stock.

GF Value™ verdict: Current price is $150.60 vs GF Value of $168.52, indicating a 10.6% undervaluation. GF Score™ of 86/100, suggesting a strong overall performance. Notable signal: Insiders have purchased $0.9M worth of stock over the past 12 months with no selling activity. Is HRI Overvalued or Undervalued? Herc Holdings Inc's current share price of $150.60 is notably below the GF Value™ estimate of $168.52, indicating that the stock is undervalued by approximately 10.6%. However, it is essential to recognize that the GF Value™ is derived from a proprietary method that considers historical trading multiples, past business growth, and future performance estimates. Given that HRI is currently unprofitable and cash-flow-negative, relying solely on earnings-based valuations like the Price-to-Earnings (P/E) ratio may not provide a complete picture of the company's financial health. Instead, an analysis of the Price-to-Sales (P/S) ratio may offer more reliable insights.

The GF Valuation label indicates that the stock is modestly undervalued, which may present an opportunity for investors looking for value plays. However, caution is warranted as valuations for loss-making companies can be volatile and subject to significant revisions based on future performance. In this context, while the GF Value™ provides a directional warning about potential upside, it should not be viewed as a precise fair-value target.

How Does HRI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 102.5x 13.5x Forward P/E 19.6x N/A The current P/E ratio of 102.5x is significantly above its 5-year median of 13.5x, indicating that the stock is trading at a premium compared to its historical valuation. This discrepancy suggests that the P/E analysis does not align with the GF Value™ verdict, further emphasizing the need to consider alternative valuation metrics, such as the Price-to-Sales ratio, given HRI's current financial situation.

What Does HRI's GF Score™ Tell Us? The GF Score™ assesses a company's financial strength, profitability, growth potential, valuation, and momentum. HRI's score of 86/100 indicates a strong overall performance, with its highest ranks in growth (9/10) and valuation (10/10). However, the company has a low financial strength score of 3/10, highlighting its challenges in maintaining robust financial health.

Metric Rating GF Score™ 86/100 Financial Strength 3/10 Profitability 8/10 Growth 9/10 Valuation 10/10 Momentum 8/10 The combination of HRI's scores suggests that while the company shows strong potential for growth and valuation, its financial strength remains a significant concern. The disparity between the growth and financial strength sub-ranks signals that while the company may perform well in the future, it currently lacks the financial stability that would provide a solid foundation for sustained performance.

What Are Gurus and Insiders Doing with HRI? Currently, 10 gurus hold shares of HRI, with 6 increasing their positions and 4 trimming their stakes in recent quarters. This activity indicates a mixed sentiment among professional investors, but the trend of adding positions could signal confidence in the company's long-term prospects as they navigate current challenges.

Additionally, insider activity has been positive, with insiders purchasing $0.9M worth of stock in the past year and no selling activity reported. This pattern of insider buying can be interpreted as a strong signal of confidence from those closest to the company, suggesting they believe the stock is undervalued at its current price.

What This Means for Investors In conclusion, Herc Holdings Inc HRI is currently undervalued based on the GF Value™ analysis, presenting a potential opportunity for value-focused investors. However, the company's financial challenges and unprofitability require careful consideration. Investors should remain cautious and closely monitor future performance metrics before making any decisions. For a more detailed analysis, visit the Herc Holdings Inc (HRI) stock page.

Frequently Asked Questions What is HRI's GF Score™?

HRI has a GF Score™ of 86/100, indicating a strong overall performance with particular strengths in growth and valuation metrics.

Is HRI overvalued or undervalued?

HRI is currently undervalued according to the GF Value™ estimate, which suggests a potential upside from its current price.

What is HRI's P/E ratio?

HRI's current P/E ratio is 102.5x, which is significantly higher than its 5-year median of 13.5x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc. (“Herc Holdings,” “Herc Rentals” or the “Company”), released its 2026 Corporate Citizenship Report, highlighting the Company's progress across key sustainability initiatives throughout 2025 and early 2026, and reinforcing its commitment to helping customers and communities build a brighter future.

“2025 was a transformative year for Herc Rentals, marked by the largest acquisition in our industry's history with the addition of H&E Equipment Services,” said Herc Rentals Chief Executive Officer Larry Silber. “As the Company grows, so does the opportunity and responsibility to support our team members and the communities we serve. To advance this commitment, we have established a new set of sustainability goals that will guide our efforts and strengthen our positive impact for years to come.”

The 2035 sustainability targets reflect Herc Rentals’ expanded footprint and long-term priorities, including reducing Total Recordable Incident Rate (TRIR) to 0.60, engaging team members in 100,000 hours of volunteerism, and reducing Scope 1, 2 and select Scope 3 emissions intensity by 30%. The report further details the Company’s roadmap for achieving these goals and advancing its sustainability journey.

Along with announcing forward-looking sustainability objectives, highlights from Herc Rentals’ 2026 Corporate Citizenship Report include:

Named one of Newsweek’s Most Responsible Companies for the fifth consecutive year; earned Great Place to Work® certification for the third time; received an EcoVadis Bronze Medal for sustainability management; and designated as a Military Friendly® Employer for the 11th time, earning Top 10 Gold employer for the first time. Achieved a TRIR of 0.93, outperforming industry benchmarks, while strengthening safety through a new framework that reinforces critical safe behaviors and accountability, and deploying an AI-enabled safe-driving program for company-operated vehicles. Enabled smarter, more digitally connected jobsites with 78% of fleet connected through telematics via ProControl by Herc Rentals™, while expanding hybrid, electric and alternative-fuel equipment to 45% of fleet to support greater energy efficiency. Invested in workforce development with approximately 486,000 hours of training, with average training hours per employee exceeding external benchmarks. Contributed approximately 4,300 hours of team member volunteerism through Volunteer Time Off (VTO) and our Community Ambassadors program, which organizes team-based volunteer and service initiatives across the branch network. Established a multi-year, in-kind partnership with Habitat for Humanity International, providing equipment rentals, safety training and volunteer support that helped 18 families across North America secure safe, affordable housing. To view Herc Rentals’ 2026 Corporate Citizenship Report and learn more about the Company’s sustainability strategy, visit https://ir.HercRentals.com/Sustainability/.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 607 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 10,000 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.

All references to “Herc Holdings” or the “Company” in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to realize all the anticipated benefits of the acquisition of H&E Equipment Services, Inc. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

More News From Herc Holdings Inc.

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BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America's leading equipment rental suppliers operating through Herc Rentals Inc. (“Herc Holdings,” “Herc Rentals” or the “Company”), today announced that its Board of Directors has declared the Company's quarterly dividend of $0.70 per share. The dividend is payable on September 16, 2026, to shareholders of record as of September 2, 2026. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operat.

Key Takeaways Herc's Q2 adjusted EPS of $1.43 beat estimates by 88.2%, while revenues rose 20.2% to $1.20 billion.Equipment rental revenues climbed 23.2% as fleet expansion and mega-project activity drove growth.Herc raised its 2026 rental revenue and adjusted EBITDA outlooks while increasing fleet investment. Herc Holdings Inc. (HRI - Free Report) ) reported second-quarter 2026 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of 76 cents by 88.2%. However, earnings declined on a year-over-year basis.

Revenues of $1.20 billion surpassed the consensus mark of $1.15 billion by 4.8% and increased 20.2% year over year. This year-over-year increase was owing to a 23% increase in equipment rental revenues resulting from the larger fleet size after the H&E acquisition, higher mega-project activity and revenue synergies. Dollar utilization improved 100 basis points to 39.3%.

Adjusted EBITDA increased 18.8% year over year to $487 million. The adjusted EBITDA margin contracted 50 basis points to 40.4%, primarily due to higher fuel and transportation costs.

HRI's Rental Revenues Lead Top-Line GrowthEquipment rental revenues increased 23.2% year over year to $1.07 billion. The business benefited from the expanded fleet, stronger volume on mega projects and cross-selling opportunities created by the H&E transaction.

Sales of rental equipment rose 3.8% year over year to $110 million as Herc continued adjusting fleet mix to customer demand. Service and other revenues increased 11.1% year over year to $10 million, while sales of new equipment, parts and supplies fell 29.4% year over year to $12 million.

Herc's Fleet Efficiency ImprovesAverage fleet size increased 20.4% year over year, primarily reflecting the H&E acquisition. The fleet totaled approximately $9.6 billion at original equipment cost at the end of June, while its average age remained 46 months.

Dollar utilization, which measures rental revenue relative to average fleet cost, rose to 39.3% from 38.3%. Compared with the prior-year pro forma figure, utilization improved 220 basis points as fleet efficiency strengthened and the mix shifted toward higher-return equipment.

Fleet expenditures at original equipment cost totaled $451 million during the reported quarter.

Herc's Expenses Reflect the Larger BusinessDirect operating expenses increased 29.6% year over year to $491 million and represented 45.8% of equipment rental revenues (up from 43.6%). The increase reflected the acquired H&E operations, newer locations that require time to mature and higher transportation and fuel costs.

Rental equipment depreciation rose 24.1% year over year to $242 million because of the larger fleet. Non-rental depreciation and amortization increased 66.7% year over year to $75 million, mainly due to acquired intangible assets and business expansion.

Selling, general and administrative expenses increased 22% year over year to $155 million, but declined slightly as a percentage of equipment rental revenues to 14.5%. Interest expense climbed 46.5% year over year to $126 million, reflecting debt issued to finance the H&E acquisition.Top of Form

HRI's Cash Flow and Liquidity Remain SolidHerc Holdings exited the second quarter with cash and cash equivalents of $43 million, flat sequentially. Long-term debt was $7.88 billion compared with $7.95 billion at the prior-quarter end.

First-half operating cash flow increased to $591 million from $412 million. Free cash flow nearly doubled to $202 million from $103 million despite higher investment in rental equipment.

The company paid a quarterly dividend of 70 cents per share on June 12.

Herc Raises Its 2026 OutlookHerc Holdings increased its full-year equipment rental revenue guidance to $4.38-$4.48 billion from $4.28-$4.40 billion. The company now expects adjusted EBITDA of $2.05-$2.13 billion compared with its previous range of $2-$2.1 billion.

Net rental equipment capital expenditures are projected to be between $850 million and $950 million, up from $500-$800 million. Gross capital expenditures are now expected to be between $1.25 billion and $1.4 billion (prior view: $800 million to $1.1 billion).

Management expects incremental revenue synergies of $100-$120 million and incremental cost synergies of $90 million in 2026. The company targets fully realized annual cost synergies of $125 million by year-end.

Full-year free cash flow is expected to range from $250 million to $350 million after strategic fleet investment.

Currently, Herc Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.

United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

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Markets Are Loving These Stocks 'Firing On All Cylinders'Herc NYSE: HRI said second-quarter operating momentum improved following the completion of its H&E integration in the first quarter, with pro forma equipment rental revenue returning to growth earlier than management had expected. The company raised its full-year outlook as national-account demand and mega-project activity accelerated, while acknowledging that fuel and transportation inflation pressured margins.

Chief Executive Officer Larry Silber said the company’s focus shifted to execution after completing the H&E integration. On a pro forma basis, equipment rental revenue rose 2% during the quarter despite a smaller average fleet at original equipment cost than a year earlier. Management attributed the improvement to fleet optimization, higher utilization and growing cross-selling opportunities across the combined platform.

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“The revenue inflection we expected is now underway,” Chief Financial Officer Mark Humphrey said. “Demand is stronger than our original plan, and we are investing to capture that opportunity while continuing to manage fleet efficiency, costs, and capital with discipline.”

Second-Quarter Results and Margin Pressure On a reported basis, equipment rental revenue increased about 23% year over year, while total revenue grew 20%, primarily reflecting the H&E acquisition, which had been included for only one month in the prior-year period. Adjusted EBITDA rose 19%, and adjusted EBITDA margin was 40.4%. REBITDA, which excludes equipment and parts sales, increased about 18%, with a 41.4% margin.

Adjusted net income was $48 million, or $1.43 per diluted share. The figure included $4 million of restructuring and transformation costs, including initial costs tied to a logistics transformation initiative.

Humphrey said fuel and freight inflation was the largest source of year-over-year pressure on profitability. Fuel and transportation costs increased approximately 35% from the first quarter and reduced adjusted EBITDA margin by about 150 basis points and adjusted REBITDA margin by 170 basis points in the second quarter.

Excluding fuel inflation, the company said adjusted EBITDA margin increased 90 basis points year over year and adjusted REBITDA margin improved 50 basis points, supported by operating performance and cost synergies.

Management expects fuel and transportation inflation to remain a headwind in the second half. The company’s outlook assumes a quarterly expense impact broadly consistent with the second quarter, producing about one percentage point of year-over-year adjusted EBITDA margin pressure for full-year 2026.

Fleet Investment Targets Mega-Project Demand President Aaron Birnbaum said Herc generated 2% pro forma equipment rental revenue growth on roughly 3% less average fleet at original equipment cost. Pro forma dollar utilization rose by more than 200 basis points from the prior year, which management described as evidence that the combined fleet and revenue mix are becoming more productive.

During the second quarter, Herc added roughly $450 million of its planned 2026 fleet purchases. First-half fleet additions totaled $634 million at original equipment cost. The company also disposed of $247 million of fleet at original equipment cost during the quarter, generating proceeds of approximately 46%.

The company is increasing fleet investment in response to demand from large, multi-year projects, particularly in energy, data centers and manufacturing. Management said the increased spending is demand-driven rather than speculative, with about 70% of incremental fleet purchases expected to be specialty equipment. Herc expects much of that equipment to go directly to projects.

Herc raised its target share of the U.S. mega-project rental opportunity to a long-term range of 15% to 20%, from its earlier 10% to 15% range. Birnbaum said the company does not expect to reach a 20% share in 2026 or 2027, but sees its competitive position strengthening over the next several years due to greater fleet capacity, branch density and technology capabilities.

Management cited Dodge projections for more than $800 billion in U.S. mega-project starts during 2026. Birnbaum noted that construction value does not directly equate to rental spending, saying historically about 2% converts to equipment rental, depending on project type. Revenue from such projects is also spread over typical durations of three to five years or more.

Guidance Raised as Synergies Progress At the midpoint of updated guidance, Herc expects full-year equipment rental revenue of $4.425 billion and adjusted EBITDA of approximately $2.09 billion. The outlook assumes roughly $900 million of net fleet capital expenditures. On a pro forma basis, the midpoint implies nearly 5% equipment rental revenue growth on flat average fleet at original equipment cost.

Free cash flow guidance was reduced to a range of $250 million to $350 million as the company increases fleet spending. Herc generated $202 million of free cash flow in the first half, ended the quarter with $2.1 billion in liquidity and reported net leverage of 3.95 times. The company also paid its regular quarterly dividend of $0.70 per share.

Herc maintained its 2026 incremental revenue synergy target of $100 million to $120 million and said it remains on track to achieve an additional $90 million in cost synergies this year, toward a fully realized $125 million target by year-end. Humphrey said revenue synergies were expected to be more weighted toward the second half, while about 55% of the incremental cost-synergy contribution is expected in the back half.

Specialty, Technology and Logistics Initiatives Specialty revenue grew at a double-digit rate in the quarter, according to Silber. Management said it aims over the longer term for specialty operations to represent 20% to 30% of the business after the H&E acquisition reduced that mix to the mid-teens.

The company said approximately 50 specialty locations opened in the fourth quarter and first quarter are performing well, though management expects about two years for their EBITDA margins to mature to levels comparable with established locations.

Herc also continues to invest in its ProControl platform, which uses artificial intelligence and telematics to help customers manage equipment fleets. Active external ProControl users increased nearly 20% quarter over quarter, while the second quarter was the company’s highest revenue-generating e-commerce period to date.

Finally, management said its logistics transformation initiative, which began in late 2025 and expanded this year, is intended to improve routing, cost recovery, process discipline and delivery execution across the larger network. Birnbaum described the effort as a multiyear program separate from acquisition cost synergies.

About Herc (NYSE:HRI)Herc Holdings Inc NYSE: HRI operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company's fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2026. “After successfully completing the H&E integration in the first quarter, the second quarter marked an important turning point for Herc Rentals, with our key metrics improving on a combined, comparable basis, both sequentially and year-over-year,” said Larry Silber, chief executive officer. “Revenue synergies and cost s.

The market expects Herc Holdings (HRI - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis equipment rental supplier is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of -59.4%.

Revenues are expected to be $1.15 billion, up 16.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Herc Holdings?For Herc Holdings, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +14.47%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Herc Holdings will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Herc Holdings would post a loss of$1.02 per share when it actually produced earnings of $0.21, delivering a surprise of +120.59%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Herc Holdings appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerRyder (R - Free Report) , another stock in the Zacks Transportation - Equipment and Leasing industry, is expected to report earnings per share of $3.7 for the quarter ended June 2026. This estimate points to a year-over-year change of +11.5%. Revenues for the quarter are expected to be $3.31 billion, up 3.8% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Ryder has been revised 1.3% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Ryder will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

On April 15, 2026, Herc Holdings Inc (HRI) shares fell 3.2% to a current price of $100.35. Over the past year, the stock has seen a high of $188.35 and a low of

On April 23, 2026, Herc Holdings Inc HRI shares rose 12.6% today, closing at $121.46. Despite this positive movement, the stock has experienced a year-to-date decline of 17.8%. The shares have traded within a 52-week range of $88.45 to $188.35.

GF Value™ verdict: The current price of $121.46 is 27.8% below the GF Value™ estimate of $168.31, indicating that the stock is undervalued.GF Score™ of 84/100 suggests strong fundamentals and the potential for higher long-term returns.Insider activity shows a positive signal, with insiders buying $0.4M worth of shares in the last three months without any selling. Is HRI Overvalued or Undervalued? The current price of Herc Holdings Inc HRI at $121.46 is significantly lower than the GF Value™ estimate of $168.31, suggesting that the stock is undervalued by 27.8%. This presents a potential opportunity for investors looking for undervalued stocks. The GF Valuation label indicates that HRI is modestly undervalued, which suggests that there may be room for price appreciation in the future. However, it is essential to consider the company's financial strength and market conditions, as a weak financial position could pose risks despite the apparent undervaluation.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should remain cautious and conduct further research into the company's fundamentals before making any investment decisions.

How Does HRI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 17.1x 13.6x Currently, HRI is trading at a forward P/E of 17.1x, which is above its 5-year median P/E of 13.6x. This indicates that the stock is trading at a premium compared to its historical valuation. The P/E analysis aligns with the GF Value™ verdict, suggesting that while the stock is undervalued based on GF Value™, it is trading at a higher multiple than historical averages, indicating potential caution in valuation metrics.

What Does HRI's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 3/10 Profitability 8/10 Growth 9/10 Valuation 4/10 Momentum 7/10 The GF Score™ of 84/100 indicates that HRI has strong fundamentals, particularly in profitability (8/10) and growth (9/10). However, the financial strength score of 3/10 raises concerns about the company's stability and ability to weather economic downturns. The valuation rank of 4/10 highlights the potential risk associated with its current valuation, suggesting that while the company has strong growth and profitability metrics, its financial health may need improvement to support long-term investment.

What Are Insiders Doing with HRI Stock? In the last three months, insiders of Herc Holdings Inc have bought $0.4 million worth of shares, with no selling activity reported. This pattern of buying suggests that insiders are confident in the company's future performance and may believe that the current stock price presents a buying opportunity. Insider purchases are often viewed as a positive signal, indicating that those with the most knowledge about the company are optimistic about its prospects.

What This Means for Investors Based on the GF Value™ assessment, Herc Holdings Inc HRI is currently undervalued. However, investors should consider the company's financial strength and the slightly elevated P/E ratio compared to historical averages before making any investment decisions.

For the complete analysis, visit the Herc Holdings Inc HRI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is HRI's GF Score™?

HRI's GF Score™ is 84/100, indicating strong fundamentals and the potential for higher long-term returns based on key metrics.

Is HRI overvalued or undervalued?

HRI is currently undervalued, with a GF Value™ estimate of $168.31 compared to its current price of $121.46, representing a 27.8% margin of safety.

What is HRI's P/E ratio?

HRI has a forward P/E ratio of 17.1x, which is above its 5-year median P/E of 13.6x, suggesting that the stock is trading at a premium relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended March 31, 2026.

"The first quarter of 2026 marked a defining milestone for Herc Rentals as we successfully completed the integration of our H&E acquisition — the largest in the history of our industry — and we are already capturing the strategic benefits we anticipated: 25% more specialty locations, a stronger and deeper sales network, expanded share in local and regional accounts, and greater density in top metropolitan markets, where construction activity is most resilient. Financial performance in the first quarter was in line with our expectations and seasonal trends. While we expect performance to build as we move through the second half of 2026, the value of this combination will be realized over our three-year synergy plan, and we are executing against that roadmap with confidence,” said Larry Silber, chief executive officer.

"The demand environment remains constructive — local markets are stable and national account activity is strong, fueled by continued mega project growth. In this bifurcated market, our diversification, deep customer relationships, and superior project execution are clear differentiators. While we are mindful of broader macroeconomic uncertainties, including ongoing geopolitical tensions, we remain confident in our proven playbook: driving network efficiency through scale, delivering value through our broad product mix and expert solutions, accelerating customer efficiency and safety through ongoing enhancements to our ProControl platform, maintaining a sharp focus on productivity, and deploying capital with discipline. None of this is possible without the dedication and expertise of the Herc team, and I want to thank every one of our employees for their commitment to our customers and to each other as we continue to build the premier equipment rental company in North America," said Silber.

2026 First Quarter Financial Results

Total revenues increased 32% to $1,139 million compared to $861 million in the prior-year period. This year-over-year increase was driven by a 33% increase in equipment rental revenue resulting from the larger fleet size after the H&E acquisition and an increase in volume on mega projects. Sales of rental equipment increased by $33 million during the period to continue to align mix to customer demand. Dollar utilization was 36.4% in the first quarter down from 37.6% in the prior-year period primarily due to the higher mix of general rental fleet on rent year-over-year as a result of the H&E acquisition. Direct operating expenses were $453 million, or 46.2% of equipment rental revenue, compared to $327 million, or 44.2% in the prior-year period. Operating expenses as a percent of equipment rental revenue were elevated during the period primarily related to the impact of the H&E acquisition and related greenfields that take more time to mature. Depreciation of rental equipment increased 41% to $242 million due to higher year-over-year average fleet size primarily as a result of the H&E acquisition. Non-rental depreciation and amortization increased 121% to $73 million primarily due to amortization of acquisition intangibles, particularly the H&E customer relationship intangible asset, and an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $146 million, or 14.9% of equipment rental revenue compared to $118 million, or 16.0% of equipment rental revenue in the prior-year period. The decrease as a percent of equipment rental revenue primarily was related to continued focus on improving operating leverage, including acquisition cost synergies, while expanding revenues. Interest expense was $128 million compared with $62 million in the prior-year period, reflecting the new debt issued in June 2025 to fund the H&E acquisition. Net loss was $24 million, or $0.72 loss per diluted share, compared to a net loss of $18 million, or $0.63 loss per diluted share, in the prior-year period. Adjusted net income for the first quarter was $7 million, or $0.21 per diluted share, compared to $37 million, or $1.30 per diluted share, in the prior-year period. Adjusted EBITDA increased 33% to $448 million compared to $338 million in the prior-year period and adjusted EBITDA margin was flat year-over-year at 39.3%. Rental Fleet

Net rental equipment capital expenditures were as follows (in millions): Three Months Ended March 31,

2026

2025

Rental equipment expenditures

$

272

$

187

Proceeds from disposal of rental equipment

(117

)

(94

)

Net rental equipment capital expenditures

$

155

$

93

As of March 31, 2026, the Company's total fleet was approximately $9.4 billion at OEC. Average fleet at OEC in the first quarter increased 36% compared to the prior-year period. Average fleet age was 47 months as of March 31, 2026, unchanged from the comparable prior-year period. Disciplined Capital Management

The Company opened 3 previously planned greenfield locations in the first quarter of 2026. Net debt was $8.0 billion as of March 31, 2026, with net leverage of 3.96x1 compared to $4.0 billion and 2.53x in the same prior-year period. The increase resulted from debt issued to finance the H&E acquisition in June 2025. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately $1.9 billion of liquidity as of March 31, 2026. The Company declared its quarterly dividend of $0.70 and paid to shareholders of record as of February 18, 2026, on March 4, 2026. 2026 Outlook

The Company is affirming its full year 2026 equipment rental revenue, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges.

As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2026, investing in its fleet, optimizing its existing fleet, capitalizing on recent acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.

Earnings Call and Webcast Information

Herc Holdings' first quarter 2026 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at https://registrations.events/directory/international/itfs.html, using the access code: 3991721. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company.

Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com. The press release and presentation slides for the call will be posted to this section of the website prior to the call. A replay of the conference call will be available via webcast on the Company website at IR.HercRentals.com, where it will be archived for 12 months after the call.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 609 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 9,700 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.

All references to “Herc Holdings” or the “Company” in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated.

Certain Additional Information

In this release we refer to the following operating measures:

Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA). OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties — many of which are beyond our control — as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to integrate the acquisition of H&E Equipment Services, Inc. into our business and our ability to realize all the anticipated benefits of the transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Information Regarding Non-GAAP Financial Measures

In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has provided certain information in this release that is not calculated according to GAAP (“non-GAAP”), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share and free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release.

HERC HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In millions, except per share data)

Three Months Ended March 31,

2026

2025

Revenues:

Equipment rental

$

981

$

739

Sales of rental equipment

138

105

Sales of new equipment, parts and supplies

13

11

Service and other revenue

7

6

Total revenues

1,139

861

Expenses:

Direct operating

453

327

Depreciation of rental equipment

242

172

Cost of sales of rental equipment

109

76

Cost of sales of new equipment, parts and supplies

9

8

Selling, general and administrative

146

118

Transaction expenses

5

74

Non-rental depreciation and amortization

73

33

Interest expense, net

128

62

Other income, net

(3

)

(1

)

Total expenses

1,162

869

Loss before income taxes

(23

)

(8

)

Income tax provision

(1

)

(10

)

Net loss

$

(24

)

$

(18

)

Weighted average shares outstanding:

Basic

33.3

28.5

Diluted

33.3

28.5

Loss per share:

Basic

$

(0.72

)

$

(0.63

)

Diluted

$

(0.72

)

$

(0.63

)

HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

March 31, 2026

December 31, 2025

ASSETS

Unaudited

Cash and cash equivalents

$

43

$

52

Receivables, net of allowances

760

769

Prepaid expenses

62

72

Other current assets

54

63

Total current assets

919

956

Rental equipment, net

5,737

5,880

Property and equipment, net

867

868

Right-of-use lease assets

1,509

1,489

Intangible assets, net

1,627

1,665

Goodwill

2,861

2,873

Other long-term assets

44

45

Total assets

$

13,564

$

13,776

LIABILITIES AND EQUITY

Current maturities of long-term debt and financing obligations

$

32

$

32

Current maturities of operating lease liabilities

57

56

Accounts payable

218

337

Accrued liabilities

321

305

Total current liabilities

628

730

Long-term debt, net

7,958

8,021

Financing obligations, net

94

95

Operating lease liabilities

1,502

1,479

Deferred tax liabilities

1,426

1,446

Other long-term liabilities

58

57

Total liabilities

11,666

11,828

Total equity

1,898

1,948

Total liabilities and equity

$

13,564

$

13,776

HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In millions)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net loss

$

(24

)

$

(18

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation of rental equipment

242

172

Depreciation of property and equipment

32

22

Amortization of intangible assets

41

11

Amortization of deferred debt and financing obligations costs

3

1

Stock-based compensation charges

6

6

Provision for receivables allowances

25

14

Deferred taxes

(19

)

(29

)

Gain on sale of rental equipment

(29

)

(29

)

Other

3

—

Changes in assets and liabilities, net of effects from acquisitions:

Receivables

(11

)

20

Other assets

16

(20

)

Accounts payable

(44

)

(18

)

Accrued liabilities and other long-term liabilities

36

39

Net cash provided by operating activities

277

171

Cash flows from investing activities:

Rental equipment expenditures

(272

)

(187

)

Proceeds from disposal of rental equipment

117

94

Non-rental capital expenditures

(41

)

(33

)

Proceeds from disposal of property and equipment

13

4

Acquisitions, net of cash acquired

—

(11

)

Net cash used in investing activities

(183

)

(133

)

Cash flows from financing activities:

Proceeds from revolving lines of credit and securitization

571

520

Repayments on revolving lines of credit and securitization

(637

)

(561

)

Principal payments under finance lease and financing obligations

(8

)

(5

)

Dividends paid

(24

)

(21

)

Other financing activities, net

(5

)

(6

)

Net cash used in financing activities

(103

)

(73

)

Effect of foreign exchange rate changes on cash and cash equivalents

—

—

Net change in cash and cash equivalents during the period

(9

)

(35

)

Cash and cash equivalents at beginning of period

52

83

Cash and cash equivalents at end of period

$

43

$

48

HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA AND ADJUSTED EBITDA RECONCILIATIONS
Unaudited
(In millions)

EBITDA and adjusted EBITDA — EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction expenses, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business, impact of the fair value mark-up of acquired fleet, impact of the studio entertainment business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments.

Adjusted EBITDA Margin — Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio.

Three Months Ended March 31,

2026

2025

Net loss

$

(24

)

$

(18

)

Income tax provision

1

10

Interest expense, net

128

62

Depreciation of rental equipment

242

172

Non-rental depreciation and amortization

73

33

EBITDA

420

259

Non-cash stock-based compensation charges

6

6

Transaction expenses

5

74

Impact of the fair value mark-up of acquired fleet(1)

16

—

Other(2)

1

(1

)

Adjusted EBITDA

$

448

$

338

Total revenues

$

1,139

$

861

Adjusted EBITDA

$

448

$

338

Adjusted EBITDA margin

39.3

%

39.3

%

HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE
Unaudited
(In millions)

Adjusted Net Income and Adjusted Earnings per Diluted Share — Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, gain (loss) on the disposal of a business, merger related intangible asset amortization, impact on depreciation of acquired fleet, impact of the fair value mark-up of acquired fleet, income (loss) of the studio entertainment business, and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, and provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business.

Three Months Ended March 31,

2026

2025

Net loss

$

(24

)

$

(18

)

Transaction expenses

5

74

Merger related intangible asset amortization(1)

31

—

Impact on depreciation related to acquired fleet(2)

(12

)

(1

)

Impact of the fair value mark-up of acquired fleet(3)

16

—

Other(4)

1

—

Tax impact of adjustments above(5)

(10

)

(18

)

Adjusted net income

$

7

$

37

Diluted shares outstanding

33.4

28.5

Adjusted earnings per diluted share

$

0.21

$

1.30

HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
FREE CASH FLOW
Unaudited
(In millions)

Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.

Three Months Ended March 31,

2026

2025

Net cash provided by operating activities

$

277

$

171

Rental equipment expenditures

(272

)

(187

)

Proceeds from disposal of rental equipment

117

94

Net rental equipment expenditures

(155

)

(93

)

Non-rental capital expenditures

(41

)

(33

)

Proceeds from disposal of property and equipment

13

4

Free cash flow

$

94

$

49

Acquisitions, net of cash acquired

—

(11

)

Decrease in net debt, excluding financing activities

$

94

$

38

More News From Herc Holdings Inc.

Herc Holdings Inc. (HRI) Q1 2026 Earnings Call Transcript

D.A. Davidson and CO. raised its holdings in shares of Herc Holdings Inc. (NYSE: HRI) by 12.5% in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 42,491 shares of the transportation company's stock after acquiring an additional 4,717 shares during the quarter.

Key Takeaways HRI beat Q1 estimates as revenues climbed 32% on higher equipment rental demand and H&E growth. Herc Holdings posted a 33% rise in adjusted EBITDA as rental revenues reached $981 million. HRI expects 2026 equipment rental revenues of $4.275B-$4.4B and EBITDA of up to $2.1B. Herc Holdings Inc. (HRI - Free Report) reported impressive first-quarter 2026 results wherein both earnings and revenues beat the Zacks Consensus Estimate.

The better-than-expected results had a positive impact on the market, as the stock has increased 1.5% since the earnings release on April 28, 2026.

Quarterly earnings per share of 21 cents outperformed the Zacks Consensus Estimate of a loss of $1.02 but declined 84% year over year. Revenues of $1.14 billion outpaced the Zacks Consensus Estimate of $1.01 billion and grew 32.3% year over year. The increase was driven by a 33% rise in equipment rental revenues, resulting from the larger fleet size after the H&E acquisition and higher volume from mega projects. 

HRI’s Segmental HighlightsThe equipment rental revenues of $981 million, accounting for 86% of total revenues, grew 32.8% year over year at the end of the first quarter of 2026. Sales of rental equipment increased 31.4% year over year to $138 million during the period, continuing to align the mix with customer demand.

Sales of new equipment, parts and supplies revenues totaled $13 million, increasing 18.2% year over year. Meanwhile, Service and other revenues grew 16.7% year over year to $7 million at the end of the March-end quarter.

Other Q1 Details of HRI Total operating expenses in the reported quarter increased by $293 million from the year-ago quarter to $1.6 billion.

Adjusted EBITDA increased 33% to $448 million compared with $338 million in the prior-year period, while adjusted EBITDA margin was flat year over year at 39.3%.

Herc Holdings exited the first quarter with cash and cash equivalents of $43 million compared with $52 million at 2025-end. Long-term debt was $7.96 billion compared with $8.02 billion at the prior-quarter end.

During the reported quarter, HRI declared a quarterly dividend of 70 cents per share payable to its shareholders of record as of Feb. 18, on March 4, 2026.

Remaining Aspects of HRI’s 2026 GuidanceFor full-year 2026, Herc Holdings expects Equipment rental revenues to range from $4.275-$4.4 billion. Adjusted EBITDA is expected to be in the band of $2-$2.1 billion.

Net rental equipment capital expenditures are anticipated to be between $500 million and $800 million and and Gross capex is expected in the range of $800 million to $1.1 billion.            

The H&E acquisition is expected to strengthen HRI’s market position through expanded specialty operations, enhanced sales capabilities and broader exposure to resilient metropolitan markets.

HRI’s Zacks RankCurrently, HRI has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q1 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report)  reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis. 

J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% rise.

Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% rise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenues per load in select highway-related businesses.

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BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc. (“Herc Holdings,” “Herc Rentals” or the “Company”), today announced that its Board of Directors has declared the Company’s quarterly dividend of $0.70 per share.

The dividend is payable on June 12, 2026, to shareholders of record as of May 29, 2026.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 609 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 9,700 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.

All references to “Herc Holdings” or the “Company” in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to integrate the acquisition of H&E Equipment Services, Inc. into our business and our ability to realize the anticipated benefits of the transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

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BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc. (“Herc Holdings,” “Herc Rentals” or the “Company”), today announced that President Aaron Birnbaum and Senior Vice President and Chief Financial Officer Mark Humphrey will participate in the Wells Fargo 16th Annual Industrials & Materials Conference in Chicago on June 9, 2026.

A fireside chat discussion and simultaneous audio webcast will take place that day at 9:30 a.m. CT (10:30 a.m. ET).

A live audio webcast of the fireside chat will be available at: Herc Holdings Inc.

The webcast will also be archived on the events and presentation page on the Company’s investor relations site: https://ir.hercrentals.com/events-and-presentations.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 609 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 9,700 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.

All references to “Herc Holdings” or the “Company” in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated.

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Key Takeaways HRI faces pressure from weak macro conditions, rising costs and lower fleet productivity. HRI saw June-quarter earnings estimates cut 53.6% in 60 days and 2026 estimates fall 25.5%. Herc Holdings reported a 38.5% rise in Q1 operating expenses to $453 million. Herc Holdings (HRI - Free Report) is grappling with significant challenges that are adversely affecting its performance. Escalated operating expenses and a weak macro environment are major headwinds, straining the company’s prospects and making it an unattractive choice for investors’ portfolios.

Let’s delve deeper.

HRI: Key Risks to WatchSouthward Earnings Estimate Revision: The Zacks Consensus Estimate for the June-end quarter earnings has moved 53.6% south over the past 60 days. For 2026, the consensus mark for earnings has been revised 25.5% downward on a year-over-year basis. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Dim Price Performance: A look at the company’s price trend reveals that its shares have declined 7.8% over the year-to-date period, surpassing the  Zacks Transportation - Equipment and Leasing industry’s 12.1% growth.

Image Source: Zacks Investment Research

Weak Zacks Rank: HRI currently has a Zacks Rank #5 (Strong Sell).

Headwinds: HRI’s decline in dollar utilization to 36.4% from 37.6% indicates that the company generated less rental revenues from each dollar invested in its fleet. The fleet acquired through H&E Equipment Services has not yet reached the productivity levels of the existing fleet, which may pressure margins and reduce returns on invested capital.

The company continues to face pressure on its financial stability amid elevated operating expenses. In the first quarter of 2026, total operating expenses rose 38.5% year over year to $453 million. Selling, general and administrative expenses of $146 million, which accounted for 12.8% of the total revenues, surged 23.7% year over year.

Economic uncertainty, high fuel costs due to the war in the Middle East, and evolving tariff policies are affecting operations and elevating compliance risks for HRI. Under these conditions, the company is delaying investments, reassessing forecasts and demanding greater agility, adding further uncertainty to its performance in the current year.

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - Free Report) . 

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.