Herc Holdings Inc
HRI.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q1
H&E’s integration is now complete, signaling the shift from a year‑long restructuring to an execution‑focused phase. In Q1, equipment‑rental revenue rose 32.7% and Adjusted EBITDA increased 32.5%, while free cash flow hit $94 million—almost double the prior‑year period—and net leverage remained at 3.96×, supporting the company’s reaffirmed 2026 guidance.
Equipment Rental Revenue
$981M
↑ 32.7%
Adjusted EBITDA
$448M
↑ 32.5%
Adjusted EBITDA Margin
39.3%
Flat
Net Leverage Ratio (Pro Forma)
3.96x
+0.01x
FY2026 Adjusted EBITDA Guidance
$2.0B – $2.1B
Affirmed
What We're Watching
Opportunity
The "Inflection Point" in Performance
📅
Q2 2026
What to Monitor
Evidence that the business is inflecting to positive pro forma revenue growth and margin expansion. Management specifically highlighted that "May and June will be a much larger tell" regarding the second-half trajectory.
Why It Matters
This inflection is the linchpin of the company's back-half weighted 2026 guidance. Failure to achieve this turn would place the full-year targets at significant risk and challenge the post-integration growth narrative.
Strategic
New Specialty Location Maturation
📅
Q2 & Q3 2026
What to Monitor
Commentary on the revenue ramp and maturation curve of the newly added specialty locations. Look for confirmation that they are on track to "more meaningfully contribute to revenue and margin growth" by the second half of the year.
Why It Matters
These locations are a primary engine for achieving the $100M-$120M revenue synergy target. A slower-than-expected ramp would delay synergy capture and pressure the company's margin expansion and deleveraging plans.
Operational
Fleet Efficiency and Capital Deployment
📅
Q2 2026
What to Monitor
Confirmation that fleet utilization continues to tighten before the main tranche of growth CapEx is deployed late in the quarter, and that the new capital is over-indexed to specialty fleet as stated.
Why It Matters
This tests management's capital discipline. Deploying capital before achieving efficiency targets could lead to underutilized assets and depress returns, while delaying it too long could constrain growth during the peak season.
Operational
Used Equipment Disposal Channel Performance
📅
Ongoing
What to Monitor
Whether proceeds as a percentage of OEC can be sustained near the high-40s level achieved in Q1, and confirmation that sales continue to flow primarily through the higher-margin retail and wholesale channels.
Why It Matters
Strong disposal proceeds directly contribute to higher free cash flow and profitability, providing a key lever for deleveraging. A reversion to lower-margin channels could indicate softening underlying equipment demand.
Risk
Near-Term Leverage Stability
📅
Q2 & Q3 2026
What to Monitor
Confirmation that the net leverage ratio remains stable around the ~4.0x level through the next two quarters, consistent with management's stated expectation that meaningful improvement is a "year-end story."
Why It Matters
An unexpected increase in leverage before the planned year-end improvement would signal potential issues with EBITDA growth or cash flow, increasing financial risk and potentially delaying the path back to the target 2-3x range.
