02.05.2018

Strong start for H&E

US crane, access and telehandler sales and rental company H&E Equipment has posted strong first quarter results, in terms of both revenues and profit.

Total revenues for the quarter were $260.5 million, almost 15 percent higher than in the first quarter last year. Apart from service revenues which were flat, revenues increased in all sectors, with rental revenues up more than 20 percent, and new equipment sales increasing 14 percent. Rental fleet physical utilisation increased from 68.5 to 70.4 percent, while rental rates were on average 2.1 percent up on a year ago. The average age of the rental fleet as of the end of March was 34.9 months.

Chief executive John Engquist said: “The momentum in our rental business continued during the first quarter with revenues increasing 20.5 percent and margins increasing 280 basis points to 47.6 percent compared to the first quarter of last year. The strong demand in our non residential markets resulted in growth in the size of our rental fleet.”

“We are excited about 2018 for our business and industry. Demand in the non-residential construction markets we serve is above year ago levels and broad based throughout our geographic footprint. In addition to solid general project activity, energy related work in our Gulf Coast region is strong, benefitting both our rental and distribution businesses. With our recent acquisitions of CEC and Rental Inc., we have added eight branches thus far this year. Rapidly executing on our stated growth strategy is a high priority and we are continuing to explore additional acquisitions and market expansion through Greenfields and warm starts.”

Vertikal Comment

Another solid set of first quarter numbers suggesting that 2018 could be a bumper year in our market sector. It is good to say the second example of a rental company achieving solid rental rate improvements at the same time as maintaining or increasing utilisation.

All very encouraging.