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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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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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.

More News From Herc Holdings Inc.

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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%.