Herc Holdings Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2025, with total revenues reaching $4.376 billion, a 23% increase from $3.568 billion in 2024. The company's equipment rental revenue alone rose by 18% to $3.770 billion, driven by a higher average original equipment cost (OEC) on rent, which was bolstered by the acquisition of H&E Equipment Services, Inc. However, on a pro forma basis, including H&E's standalone results prior to the acquisition, equipment rental revenue decreased by 6% due to market moderation and acquisition-related disruptions.
The acquisition of H&E, completed on June 2, 2025, was a pivotal strategic move, adding approximately 160 branches and enhancing the company's scale in key rental regions. This acquisition was financed through a combination of new debt instruments, including $1.65 billion in senior notes and a $750 million term loan facility. The company also opened 26 new greenfield locations, further expanding its footprint in urban markets. As of December 31, 2025, Herc Holdings operated 602 locations across North America, with a total employee count of approximately 9,600.
Operationally, Herc Holdings experienced increased direct operating expenses, which rose by 24% to $1.602 billion, primarily due to higher field wages and benefits associated with the expanded workforce from the H&E acquisition. The company also reported a net income of $1 million, a significant decline from $211 million in 2024, largely attributed to increased interest expenses and transaction costs related to the acquisition. The interest expense surged by 60% to $416 million, reflecting the new debt incurred for financing.
Looking ahead, Herc Holdings remains focused on leveraging its expanded capabilities and market presence to drive growth. The company plans to continue investing in its rental fleet and technology to enhance customer service and operational efficiency. Despite facing challenges such as inflationary pressures and potential supply chain disruptions, management expressed confidence in the company's ability to navigate the current economic landscape and achieve its long-term strategic objectives. The company also maintained a quarterly dividend of $0.70 per share, underscoring its commitment to returning value to shareholders while managing its capital structure prudently.
About HERC HOLDINGS INC
Herc Holdings Inc. is a leading North American equipment rental provider offering a broad fleet of construction, industrial, and specialty equipment. Serving diverse markets including construction, industrial, infrastructure, and facilities management, it emphasizes customer service, technological innovation, and sustainability. The company generates revenue through equipment rentals, sales of used and new equipment, and value-added services, leveraging scale, geographic reach, and industry expertise to maintain competitive advantage.
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