Q1 2025 Herc Holdings Inc Earnings Call Transcript
Key Points
- Herc Holdings Inc (HRI) reported a 5% growth in equipment rental revenue for the quarter, excluding the Cinelease business.
- The company successfully executed a merger agreement to acquire H&E Equipment Services, expanding its scale and geographic coverage.
- Herc Holdings Inc (HRI) is focusing on increasing specialty fleet CapEx to capture share of wallet opportunities and support mega projects.
- The company maintains a strong commitment to safety, achieving a 96% perfect day rate across its operations.
- Herc Holdings Inc (HRI) has a diversified business model, reducing reliance on a single industry or customer, which enhances resilience to economic cycles.
- The company faced challenges in the local market due to prolonged elevated interest rates, impacting local account growth.
- Unusually cold weather in the southern states led to temporary branch closures, affecting daily and weekly local rentals.
- Herc Holdings Inc (HRI) recorded a net loss in the first quarter due to $74 million of H&E transaction costs.
- The local market slowdown and inefficiencies associated with new acquisitions and greenfields impacted the company's ROIC.
- The company is pausing other M&A initiatives to focus on integrating the H&E acquisition, which may limit growth opportunities in the short term.
Hello, and welcome to the Herc Holdings Q1 earnings call and webcast. (Operator Instructions) I would like to turn the call over to Leslie Hunziker, Head of Investor Relations. Leslie, please go ahead.
Thank you, operator, and good morning, everyone. Today, we're reviewing our first quarter 2025 results with comments on operations and our financials including our VB industry and our strategic outlook. The prepared remarks will be followed by an open Q&A.
Earlier today, our press release and presentation slides were furnished and our 10-Q is filed with the SEC. All are posted on the Events page of our IR website. Now let's move on to our Safe Harbor and GAAP reconciliation on slide 3. This call will include forward-looking statements. These statements are based as we see it today and therefore, involve risks and uncertainties.
I would caution you that our actual results could differ materially from forward-looking statements made on this call. You should also refer to the Risk Factors
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