Herc Holdings Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $3.57 billion, an increase of 9% from $3.28 billion in 2023. The company's equipment rental segment was the primary driver of this growth, generating $3.19 billion in revenue, up 11% from the previous year, attributed to a 9.3% increase in the volume of equipment rented and a 3.2% rise in rental pricing. However, net income decreased by 39% to $211 million, down from $347 million in 2023, largely due to a $194 million loss on assets held for sale related to the Cinelease business.
In 2024, Herc Holdings made significant strategic moves, completing nine acquisitions that added 28 branches and opening 23 new locations, with a total cash outflow of $600 million. These actions are part of the company's strategy to enhance its presence in urban markets and improve operational scale. The company also issued $800 million in senior unsecured notes to refinance part of its debt, which now totals approximately $4.1 billion, while maintaining over $1.8 billion in available credit under its asset-based revolving credit facility.
Operationally, Herc Holdings employed around 7,600 people as of December 31, 2024, reflecting an increase in headcount to support growth initiatives. The company reported that national accounts contributed 45% of its equipment rental revenue, indicating a strong reliance on larger customers for consistent revenue streams. The average age of the rental equipment fleet was 46 months, and the total original equipment cost of the fleet was approximately $7 billion, underscoring the company's commitment to maintaining a high-quality and diverse equipment portfolio.
Looking ahead, Herc Holdings remains optimistic about its growth trajectory, driven by ongoing investments in rental equipment and strategic acquisitions. The company anticipates continued demand for rental services, particularly as businesses increasingly prefer renting over owning equipment to manage capital expenditures. However, the company also acknowledges potential challenges, including economic fluctuations and competitive pressures that could impact pricing and demand in the equipment rental market.
About HERC HOLDINGS INC
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