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Herc Holdings Inc.
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$4.4B
Market Cap
4,946.0
P/E
1.34
PEG
7.5%
ROCE
0.1%
ROE
4.97
D/E
15.3%
OPM
-20.4%
% from 52W High
64
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for HRI including FX impact
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📈 Price History
Ratio Health
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About

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The company offers ProSolutions, an industry specific solution-based services, which include power generation, climate control, remediation and restoration, pump, trench shoring, and studio and production equipment; and ProContractor professional grade tools. In addition, it provides various services, including repair, maintenance, equipment management, and safety training; and equipment re-rental and on-site support services, as well as ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. Further, the company sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including refineries and petrochemical, automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, and food and beverage industries; infrastructure and government sectors; and commercial facilities, commercial warehousing, education, healthcare, data centers, hospitality, retail, special event management and non-account customers. The company sells its products through its sales team and industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. Herc Holdings Inc. was incorporated in 1965 and is based in Bonita Springs, Florida.

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📈 Growth Pattern
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⭐ Superinvestors Holding HRI
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 123.3K $12.3M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Herc Holdings completes H&E integration; Q1 rental revenue up 33% GAAP, pro forma down 3%
Revenue & Profitability
On a GAAP basis, equipment rental revenue grew approximately 33% year-over-year. Pro forma rental revenue declined 3%. Adjusted EBITDA increased 33% versus last year, but pro forma was down about 5%. Net loss included $5 million of transaction costs; adjusted net income was $7 million.
Outlook
Management sees positive fundamental drivers for non-residential construction and industrial spending, with a deep pipeline of mega-projects in manufacturing, LNG, renewables, and data centers. The first half is expected to build the foundation, with second half delivering growth and margin improvement, consistent with their 2026 plan.
Growth Drivers
Key growth levers include double-digit specialty revenue growth driven by targeted fleet investments and 25% more specialty locations. Cross-selling specialty products across the expanded sales force is a focus. Mega-project activity was notably strong in Q1 with earlier ramp-ups than typical.
Balance Sheet & CapEx
Q1 fleet expenditures were $183 million, up 78% on a pro forma basis, reflecting normal seasonal buying. Fleet disposals were $281 million OEC with proceeds at 49% of OEC. Growth CapEx is expected to be loaded 65% in the back half of Q2 and Q3, with an over-index to specialty fleet.
Margins
Adjusted EBITDA margin was 39.3% in Q1, consistent with the prior year. Management expects margin improvement in Q3 and Q4, driven by rental revenue synergies, higher-margin product mix, full realization of cost synergies, and improved variable cost management. The path to margin expansion is clear as the second half delivers growth.
Key Risks
Key risks flagged include macroeconomic uncertainty around interest rates, trade policy, and general sentiment. Specific operational risks include static local market demand and the impact of lower-margin acquired business on margins. The company also faces fuel cost increases, which are managed through fees and surcharges.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 saw a return to pro forma rental revenue growth, strong specialty and digital gains, and raised full-year guidance amid robust mega-project demand. Margins faced fuel inflation headwinds, but synergy capture and disciplined fleet investment support a positive outlook.
Q1 2026 Q1 2026 2026-04-28
Integration of a major acquisition expanded scale and specialty capabilities, driving 33% rental revenue growth and strong EBITDA gains year-over-year. Synergy realization and margin expansion are expected to accelerate in the second half, with guidance affirmed for 2026.
Q4 2025 Q4 2025 2026-02-17
Q4 and full-year 2025 saw strong revenue and EBITDA growth, driven by a major acquisition, specialty expansion, and digital initiatives. 2026 guidance calls for double-digit rental revenue growth, significant synergy realization, and robust free cash flow.
Q3 2025 Q3 2025 2025-10-28
Integration of a major acquisition drove 30% rental revenue growth and 24% higher adjusted EBITDA, with strong mega project and specialty demand offsetting local market softness. Systems integration and fleet optimization are on track, supporting confidence in synergy targets and long-term growth.
Q2 2025 Q2 2025 2025-07-29
Q2 saw strong rental revenue and EBITDA growth, offset by acquisition-related costs and local market softness. Integration of H&E is progressing, with early synergy wins and a focus on specialty fleet and megaprojects. 2025 guidance targets $3.7–$3.9B rental revenue and $1.8–$1.9B adjusted EBITDA.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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