- Herc Holdings (HRI, Financial) reported a net loss of $18 million in Q1 2025 primarily due to H&E acquisition costs.
- Quarterly revenues reached $861 million, marking a 7% increase year-over-year.
- The company projects equipment rental revenue growth of 4-6% for 2025, excluding Cinelease.
Herc Holdings Inc. (HRI), a leading equipment rental company, announced its financial results for the first quarter of 2025, highlighting record revenues despite challenges related to acquisition costs. The company reported a net loss of $18 million, or $0.63 per share, primarily attributed to transaction expenses from the H&E acquisition, including a significant $64 million termination fee paid to United Rentals.
Total revenues rose to $861 million in Q1 2025, a 7% increase compared to the previous year, driven by both organic growth and benefits from previous acquisitions. Equipment rental revenue also saw a 3% increase to $739 million, underscoring the company's consistent performance amidst a varied economic landscape. However, dollar utilization rates dipped to 37.6% from 39.7% in the previous year.
Despite the net loss, Herc Holdings maintains a positive outlook for 2025, reaffirming its full-year guidance. The company anticipates equipment rental revenue growth of 4-6%, excluding its Cinelease studio entertainment business, which is currently undergoing a sale process expected to conclude within the year. Adjusted EBITDA is projected to range between $1.575 billion and $1.650 billion.
Herc Holdings also continues to emphasize disciplined capital management, concluding Q1 with net debt of $4.0 billion and a net leverage ratio of 2.5x. The company's liquidity stood at approximately $1.9 billion as of March 31, 2025.
The company declared a quarterly dividend increase of 5% to $0.70 per share, paid on March 4, 2025, reaffirming its commitment to returning value to shareholders despite current market conditions.
