Herc Holdings Reports 32% Revenue Growth to $1.139 Billion in Q1 2026

Herc Holdings Inc. reported a significant increase in financial performance for the first quarter of 2026, with total revenues reaching $1.139 billion, a 32% increase from $861 million in the same period of 2025. The growth was primarily driven by a 33% rise in equipment rental revenue, which amounted to $981 million, up from $739 million year-over-year. The company also saw an increase in sales of rental equipment, which rose to $138 million from $105 million, and service and other revenue, which grew to $7 million from $6 million. Despite the revenue growth, Herc Holdings recorded a net loss of $24 million, compared to a loss of $18 million in the prior year, reflecting increased operating expenses and interest costs associated with its recent acquisition of H&E Equipment Services, Inc.

The financial results indicate several operational changes compared to the previous fiscal period. Direct operating expenses surged by 39% to $453 million, driven by higher maintenance and facility costs associated with the expanded fleet following the H&E acquisition. Additionally, depreciation of rental equipment increased by 41% to $242 million, reflecting the larger average fleet size. Selling, general, and administrative expenses also rose by 24% to $146 million, although as a percentage of equipment rental revenue, these expenses decreased, indicating improved operational efficiency.

Strategically, Herc Holdings has focused on integrating the H&E acquisition, completed in June 2025, which added significant scale and density to its operations. The acquisition has provided cross-selling opportunities and increased the availability of equipment across its customer base. As of March 31, 2026, the company operated 609 locations in North America, with a customer base that continues to expand. The integration of H&E is expected to enhance the company's market position, although pro forma results indicate a slight decline in rental revenue when accounting for H&E's standalone performance prior to the acquisition.

In terms of operational metrics, Herc Holdings reported an increase in its rental fleet and customer engagement, although specific user statistics were not disclosed. The company continues to monitor market conditions, including inflation and interest rates, which could impact future performance. As of the end of the first quarter, Herc Holdings had approximately $8.0 billion in total debt, with liquidity supported by $43 million in cash and $1.9 billion in unused commitments under its ABL Credit Facility. The company remains focused on maintaining sufficient liquidity to support its operational and capital needs.

Looking ahead, Herc Holdings anticipates that the current economic environment will continue to present challenges, but it believes it is well-positioned to navigate these conditions. The company plans to leverage its scale and diversified customer base to drive growth, while also managing costs and capital expenditures prudently. The outlook remains cautious, with ongoing assessments of market dynamics and their potential impact on the business.