Herc Holdings Reports $1.002 Billion Revenue in Q2 2025, Faces $35 Million Net Loss

Herc Holdings Inc. reported a total revenue of $1.002 billion for the second quarter of 2025, marking an increase of 18% compared to $848 million in the same period last year. The growth was primarily driven by a 14% rise in equipment rental revenue, which reached $870 million, up from $765 million in the prior year. For the first half of 2025, total revenues also increased by 13% to $1.863 billion, compared to $1.652 billion in the first half of 2024. However, the company experienced a net loss of $35 million for the second quarter, a significant decline from a net income of $70 million in the same quarter of 2024, and a loss of $53 million for the first half of 2025 compared to a profit of $135 million in the previous year.

The financial performance reflects several operational changes, including the acquisition of H&E Equipment Services, Inc. on June 2, 2025, for a total purchase price of $4.8 billion. This acquisition was funded through a combination of new debt, including $2.75 billion in senior unsecured notes and a $750 million term loan facility. The integration of H&E is expected to enhance the company's scale and density in key rental regions, although it has also contributed to increased transaction expenses, which rose to $147 million in the first half of 2025 from $6 million in the same period last year.

Operationally, Herc Holdings reported a total of 622 locations across North America as of June 30, 2025. The company’s rental equipment fleet increased significantly, with rental equipment net assets rising to $6.015 billion from $4.225 billion at the end of 2024. The company also noted a 63% increase in sales of rental equipment, totaling $106 million in the second quarter, as part of its strategy to manage fleet age and improve equipment mix. However, the margin on these sales decreased due to normalization of used equipment pricing.

The company’s total liabilities surged to $12.107 billion as of June 30, 2025, compared to $6.481 billion at the end of 2024, largely due to the debt incurred for the H&E acquisition. The increase in interest expense, which rose to $148 million in the first half of 2025 from $124 million in the previous year, reflects the higher borrowing levels. Despite these challenges, Herc Holdings maintains a liquidity position with $53 million in cash and approximately $1.6 billion available under its credit facilities, which it believes will be sufficient to meet its operational and capital needs over the next twelve months.

Looking ahead, Herc Holdings anticipates that the ongoing economic environment, characterized by elevated interest rates and inflationary pressures, will continue to impact its operations. The company is focused on managing its costs and optimizing its fleet while navigating the integration of H&E. Additionally, the recent enactment of the One Big Beautiful Bill Act, which includes provisions for accelerated tax deductions, may provide some financial relief in the coming years. The company remains committed to adjusting its strategies in response to market conditions and leveraging its expanded scale to enhance profitability.