Herc Holdings Inc. reported significant financial developments in its latest quarterly filing for the period ending September 30, 2025. The company achieved total revenues of $1.304 billion for the third quarter, a 35% increase from $965 million in the same period last year. For the nine months ending September 30, 2025, revenues reached $3.167 billion, up 21% from $2.617 billion in 2024. The increase in revenue was primarily driven by a 30% rise in equipment rental revenue, which totaled $1.122 billion, reflecting the impact of the recent acquisition of H&E Equipment Services, Inc.
Despite the revenue growth, Herc Holdings reported a net income of $30 million for the third quarter, a decline of 75% compared to $122 million in the prior year. For the nine-month period, the company experienced a net loss of $23 million, contrasting sharply with a profit of $257 million in 2024. The decline in profitability was attributed to increased direct operating expenses, which rose by 40% to $467 million, and substantial transaction expenses related to the H&E acquisition, totaling $185 million for the nine months.
The acquisition of H&E, completed on June 2, 2025, was a strategic move aimed at expanding the company's market presence. The total purchase price for H&E was approximately $4.8 billion, funded through a combination of new debt instruments, including $2.75 billion in senior unsecured notes and a $750 million term loan facility. This acquisition added significant scale and density to Herc's operations, particularly in key rental regions across North America. The company now operates 612 locations, enhancing its ability to serve a diverse customer base in both construction and industrial markets.
Operationally, Herc Holdings faced challenges post-acquisition, particularly with integration and salesforce disruptions at H&E, which contributed to a year-over-year decline in rental revenue on a pro forma basis. The company also divested its Cinelease studio entertainment business for $100 million, recognizing a pre-tax gain of $1 million from the sale. The divestiture was part of a strategic shift to focus on core rental operations.
Looking ahead, Herc Holdings remains cautious about the economic environment, which is characterized by elevated interest rates and ongoing inflationary pressures. The company plans to continue monitoring market conditions and adjusting its operations accordingly. Management expressed confidence in the company's ability to navigate these challenges, leveraging its diversified portfolio and operational scale to maintain resilience in the equipment rental market.
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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