04.08.2026

Solid first haflf for Herc

US based Herc Rentals has published its first half results, with substantially higher revenues and a dramatic improvement in profitability.

First half

Total revenues for the six months to the end of June were almost 26% higher than this time last year at $2.34 billion, thanks to higher rental revenues, with a small improvement in used equipment sales and services.

Pre-tax profit
Last year’s $54 million loss was converted into a $1 million profit this year, mostly due to the absence of major transaction costs that were incurred last year with the H&E acquisition and no write-downs, compared to $49 million last year.

Capital expenditure on rental equipment was 25% higher at $527million. The average age of the fleet remained the same at 46 months.

Net debt at the end of June was cut by 1.7% to $7.88 billion.

Second Quarter

Total revenues came in at $1.20 billion, a 20% jump on the same quarter last year, thanks to the H&E Equipment acquisition. While last year’s pre-tax loss of $46 million was converted into a $24 million profit, due to the points mentioned for the first half.

Full year forecast
The company has raised its full year forecasts for rental revenues to $4.37 -$4.48 billion, which would represent an increase 15 to 25% increase over 2025. Full year capital expenditure has been increased to $1.25 to $1.4 billion.

Chief executive Larry Silber said: “After successfully completing the H&E integration in the first quarter, the second quarter marked an important turning point for Herc Rentals, with our key metrics improving both sequentially and year over year.”

“Revenue and cost synergies are tracking to plan. And while fuel inflation was a headwind in the quarter, we are taking additional action to mitigate its impact. Importantly, disciplined fleet management drove positive fleet efficiency, supported by increased rental activity.”

“Our growth continues to be led by national accounts, fuelled by robust mega project activity and a higher mix of speciality equipment rentals. The H&E acquisition was well timed, adding the scale, fleet capacity, talent and branch density to expand our role on large, complex projects and capture a greater share of this accelerating demand.”

“The momentum across multiyear projects gives us strong line of sight into the second half of the year. To support this expanding pipeline, we are raising our full-year financial guidance and increasing net fleet capital expenditures to serve customer demand.”

Vertikal Comment

This is certainly a better result from Herc, although it remains very, very thin, not helped by the massive debt burden.

However, the signs are all there that it is on a positive trajectory and there are plenty of efficiencies and synergies to go after as the integration progresses. So, with a stable year or two for the North American economies, it ought to be in good shape by 2028.

A big step in the right direction.