Herc (NYSE:HRI) Issues Quarterly Earnings Results

Herc (NYSE:HRI) issued its quarterly earnings results on Tuesday. The transportation company reported $2.07 EPS for the quarter, beating the consensus estimate of $1.87 by $0.20, FiscalAI reports. Herc had a positive return on equity of 16.32% and a negative net margin of 1.68%.The firm had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.25 billion. During the same period in the prior year, the firm posted $3.58 earnings per share. The business’s quarterly revenue was up 27.1% compared to the same quarter last year.

Here are the key takeaways from Herc’s conference call:

• Completed the industry‑leading June 2025 acquisition of H&E and advanced integration work (80% of branch optimization done) with $125 million of cost synergies expected in 2026 and management saying synergies are tracking ahead of plan.
• 2026 financial guide calls for rental revenue growth of 13%–17%, Adjusted EBITDA of $2.0B–$2.1B (10%–16% growth), and free cash flow of $400M–$600M while targeting a return to 2–3x leverage by year‑end 2027 from a current ~3.9x pro forma.
• Growth levers include a ~25% increase in standalone/co‑located specialty branches, >50% growth in digital revenue, ~80% telematics penetration, and early specialty sales momentum that management expects to lift higher‑margin mix over time.
• Fleet and capital plans call for roughly $950M gross CapEx at the midpoint (net CapEx ~ $650M) with materially lower disposals this year (management cited ~ $700M of disposals visibility) as the company shifts from right‑sizing to aging the acquired fleet and improving utilization.
• Near‑term headwinds include expected pro‑forma dollar utilization decline in Q1, margin pressure from elevated used equipment sales and lower fixed cost absorption in some H&E‑heavy local markets, and elevated leverage until revenue and cost synergies fully flow through.

Herc Price Performance

NYSE HRI traded down $14.69 during trading on Tuesday, hitting $158.43. 445,977 shares of the company’s stock were exchanged, compared to its average volume of 521,815. The company has a market cap of $5.27 billion, a PE ratio of -62.70, a P/E/G ratio of 1.61 and a beta of 1.77. Herc has a fifty-two week low of $96.18 and a fifty-two week high of $190.04. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 4.28. The stock’s 50 day moving average price is $159.92 and its two-hundred day moving average price is $139.57.

Herc Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Wednesday, February 18th. Herc’s payout ratio is currently -111.11%.

Institutional Investors Weigh In On Herc

Institutional investors and hedge funds have recently made changes to their positions in the stock. Invesco Ltd. grew its stake in Herc by 11.2% in the 3rd quarter. Invesco Ltd. now owns 4,123,437 shares of the transportation company’s stock valued at $481,040,000 after purchasing an additional 413,719 shares during the period. Dimensional Fund Advisors LP lifted its stake in Herc by 2.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 993,833 shares of the transportation company’s stock worth $147,480,000 after purchasing an additional 28,024 shares in the last quarter. Alliancebernstein L.P. boosted its stake in Herc by 40.0% during the second quarter. Alliancebernstein L.P. now owns 825,511 shares of the transportation company’s stock valued at $108,712,000 after buying an additional 235,694 shares during the period. State Street Corp grew its holdings in shares of Herc by 18.8% during the second quarter. State Street Corp now owns 784,979 shares of the transportation company’s stock worth $103,374,000 after purchasing an additional 124,136 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of Herc by 2.4% in the 4th quarter. First Trust Advisors LP now owns 770,291 shares of the transportation company’s stock worth $114,296,000 after buying an additional 18,036 shares during the last quarter. Institutional investors and hedge funds own 93.11% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on HRI shares. JPMorgan Chase & Co. raised their target price on shares of Herc from $150.00 to $165.00 and gave the company a “neutral” rating in a research note on Wednesday, January 14th. Citigroup increased their price objective on Herc from $170.00 to $195.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Wells Fargo & Company boosted their target price on shares of Herc from $170.00 to $189.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Robert W. Baird set a $200.00 price target on shares of Herc in a research note on Wednesday, October 29th. Finally, Wall Street Zen upgraded shares of Herc from a “sell” rating to a “hold” rating in a research note on Sunday, November 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Herc presently has a consensus rating of “Moderate Buy” and an average price target of $181.43.

About Herc

Herc Holdings Inc (NYSE: HRI) operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company’s fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.