Based on approximately 33.4 million diluted shares outstanding in the fourth quarter, Herc Holdings’ market capitalization stood at approximately $5.01 billion.
Latest Quarterly Results
For the quarter ended December 31, 2025, Herc reported total revenues of $1,209 million, compared with $951 million in the prior-year quarter, reflecting a 27% year-over-year increase. Equipment rental revenue was $1,039 million, up 24% year over year.
Net income was $24 million, compared with a net loss of $46 million in the fourth quarter of 2024. Diluted earnings per share were $0.72, versus a loss per share of $1.62 a year earlier.
Adjusted EBITDA rose to $519 million, up 19% from $438 million in the prior-year quarter. Adjusted EBITDA margin was 42.9%, compared with 46.1% in the prior-year period.
Full-Year Results Context
For full-year 2025, Herc reported total revenues of $4,376 million, compared with $3,568 million in 2024, representing 23% year-over-year growth. Equipment rental revenue increased 18% to $3,770 million.
Net income for 2025 was $1 million, compared with $211 million in 2024. Diluted earnings per share were $0.03, versus $7.40 in the prior year. Adjusted net income was $239 million, compared with $367 million in 2024.
Adjusted EBITDA for the year was $1,818 million, up 15% from $1,583 million in 2024. Adjusted EBITDA margin was 41.5%, compared with 44.4% in the prior year.
Business & Operations Update
The company completed the acquisition of H&E Equipment Services in June 2025. Integration initiatives included technology migration, branch network optimization and fleet alignment. Total fleet size was approximately $9.5 billion at original equipment cost as of December 31, 2025. The company opened 26 greenfield locations during the year.
Net debt was $8.1 billion at year-end, with net leverage of 3.95x, compared with 2.54x in the prior year. Liquidity totaled approximately $1.9 billion.
M&A or Strategic Moves
Acquisition-related cash outflows totaled $4,257 million in 2025, net of cash acquired, reflecting the H&E transaction and related activity.
Equity Analyst Commentary
Institutional research coverage following the earnings release focused on revenue contribution from the H&E acquisition, adjusted EBITDA growth, leverage metrics, and capital expenditure plans disclosed by the company.
Guidance & Outlook
For full-year 2026, Herc expects equipment rental revenue between $4.275 billion and $4.4 billion and adjusted EBITDA between $2.0 billion and $2.1 billion. Net rental equipment capital expenditures are projected between $500 million and $800 million.
Performance Summary
HRI closed at $150.12. Fourth-quarter revenue increased 27% year over year. Net income returned to positive territory versus a prior-year loss. Full-year revenue grew 23%, while net income declined due to acquisition-related costs. Adjusted EBITDA expanded. 2026 guidance was issued.