Company Overview - Herc Rentals is celebrating its 60th anniversary as the oldest public company in the equipment rental industry [1] - The company has been an independent public entity for over 9 years, employing over 10,000 individuals and operating more than 625 locations across 46 states and 5 Canadian provinces [1] - The addressable market for Herc Rentals in North America is approximately $87 billion and is expected to grow [1] Industry Dynamics - The equipment rental industry is experiencing a long-term shift from ownership to rental, which is a secular trend benefiting the market [1] - Herc Rentals is focused on sustaining a profitable growth trend and executing a strong growth strategy [1] Growth Strategy - The company has achieved above-market growth through investments in fleet expansion, new greenfield openings, and entry into the specialty marketplace [2] - Herc Rentals has completed over 50 mergers and acquisitions in the last 4.5 years, resulting in the addition of 113 locations [2]

Group 1 - Herc Holdings Inc. (NYSE: HRI) shares have underperformed in the current year despite winning the acquisition of H&E Equipment, indicating potential challenges in the market [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports, providing coverage of 10 significant events monthly [1] Group 2 - The article emphasizes the importance of actionable ideas in capitalizing on corporate events, suggesting a strategic approach to investment [1]

Summary of Herc Holdings Inc. FY Conference Call (September 11, 2025) Company Overview - Herc Holdings Inc. is the oldest public company in the equipment rental industry, celebrating its 60th anniversary. [1] - The company operates over 625 locations across 46 states and five Canadian provinces, employing over 10,000 people. [1] - The addressable market for Herc is approximately $87 billion and is expected to grow, driven by a shift from ownership to rental in the equipment sector. [1] Core Business Strategies - Herc has achieved above-market growth through fleet investments, new openings, and M&A, completing over 50 transactions in the last four and a half years, adding 113 locations. [2] - The recent acquisition of H&E Equipment Services Inc. added 165 locations, enhancing Herc's scale and capabilities in the mega project market. [2][3] - The company operates primarily in the top 100 Metropolitan Statistical Areas (MSAs) in North America, which helps mitigate recession risks. [3] Market Dynamics - Local markets are currently stable but have shown softness, primarily due to commercial activity influenced by interest rates. [5][6] - The mega project segment remains strong, with Herc aiming to participate in 10% to 15% of these projects. [7] - Geographic strength is noted in areas with fewer regulations, such as Texas and the Gulf, while the West Coast faces challenges in securing large projects. [8] Acquisition Insights - The integration of H&E Equipment Services Inc. is progressing well, with all locations expected to be fully operational on the Herc platform shortly. [3][16] - The acquisition is expected to yield $125 million in cost synergies over two years, with a current run rate indicating 50% achievement by year-end. [17] - The combined fleet will focus on increasing the specialty segment from 16% to a long-term target of 25%, enhancing margin profiles. [25] Financial Outlook - The leverage ratio post-acquisition is at 3.8, with expectations to return to a 2-3 times leverage profile by 2027. [19][21] - The company is prioritizing integration and optimizing the newly acquired branches before pursuing further acquisitions. [21] Future Market Trends - The equipment rental industry is expected to continue growing, with a secular trend favoring rental over ownership. [31] - Customers are increasingly seeking comprehensive solutions, including technology and efficiency in fleet management. [31] - The introduction of innovative products, such as battery storage power and load banks for data centers, is anticipated to drive future growth. [29] Conclusion - Herc Holdings Inc. is well-positioned to capitalize on market opportunities through strategic acquisitions, a focus on specialty equipment, and a robust approach to integration and capital efficiency. [1][17][31]

Financial Data and Key Metrics Changes - In the second quarter, rental revenue increased by 13.7% and adjusted EBITDA rose by 12.8% to $406 million [32] - The company recorded a net loss in the second quarter, which included $73 million of transaction costs related to the H and E acquisition and a $49 million loss on assets held for sale [32] - On an adjusted basis, net income was $56 million [32] Business Line Data and Key Metrics Changes - GAAP equipment rental revenue was up about 14%, but on a pro forma basis, rental revenue would have been down 2% year over year, primarily due to weakness in the film and TV vertical and a decline in the H and E business [35] - Excluding Cinelese, rental revenue from Herc legacy branches increased by 4%, reflecting strong mega project activity and positive results in both general rental and specialty product lines [35] Market Data and Key Metrics Changes - Local accounts represented 53% of rental revenue compared to 56% a year ago, while national account demand remains strong [20] - The company is targeting a 60% local and 40% national revenue split, which provides growth and resiliency [21] Company Strategy and Development Direction - The integration of H and E is the primary focus, with plans to pause other M&A initiatives for the time being [16] - The company aims to capitalize on the shift from ownership to rental, particularly in the specialty market, and is planning to repurpose general rental branches into ProSolutions facilities [17] - The company is targeting $350 million in gross revenue synergies over three years from the H and E acquisition [40] Management's Comments on Operating Environment and Future Outlook - Management noted that local markets are under pressure due to interest rate-sensitive commercial construction, while mega project activity remains robust [20] - The company has not experienced cancellations on mega projects, although delays are typical due to design revisions and regulatory reviews [21] - Management expressed confidence in achieving both revenue and cost synergies from the acquisition, with a target of 50% of the $125 million EBITDA run rate by year-end 2025 [40] Other Important Information - The company generated $270 million of free cash flow in the first half of the year, net of transaction costs [37] - The current leverage ratio is 3.8 times, with plans to bring it back into the target range of 2 to 3 times by 2027 [37] Q&A Session Summary Question: Comments on fleet setup and future CapEx - Management indicated that it is early in the integration process and adjustments will be made to right-size the H and E fleet [45] Question: Confidence in overcoming revenue dissynergies - Management noted that while there were initial workforce disruptions, stabilization has occurred since the acquisition [51] Question: Free cash flow guidance clarification - Management provided a baseline for free cash flow generation of 10% to 15% off the revenue base, considering the missing cash flow from H and E [60] Question: Pricing pressures for H and E - Management acknowledged pricing headwinds for H and E but noted that pricing contributed to revenue growth for Herc [63] Question: Cost synergies related to headcount - Management confirmed that a significant portion of the $125 million cost synergies is related to headcount reductions, which have been identified [67] Question: Revenue synergy from cross-selling specialty products - Management expressed optimism about early synergy wins and training for the sales team to enhance specialty product offerings [78]

Financial Data and Key Metrics Changes - In Q2 2025, rental revenue increased by 13.7% and adjusted EBITDA rose by 12.8% to $406 million [32] - The company recorded a net loss in Q2, which included $73 million of transaction costs related to the H and E acquisition and a $49 million loss on assets held for sale [32] - On an adjusted basis, net income was $56 million [32] Business Line Data and Key Metrics Changes - Excluding Cinelese, Herc legacy branches saw a 4% increase in rental revenue, driven by strong mega project activity and moderated growth in the local market [33] - H and E's rental revenue declined by approximately 15% due to workforce disruptions and limited product offerings [34] Market Data and Key Metrics Changes - Local accounts represented 53% of rental revenue in Q2, down from 56% a year ago, while national accounts remained strong [21] - The company is targeting a revenue split of 60% local and 40% national, which provides growth and resiliency [22] Company Strategy and Development Direction - The integration of H and E is the primary focus, with plans to pause other M&A initiatives temporarily [17] - The company aims to capitalize on the shift from ownership to rental, particularly in the specialty market, and to repurpose general rental branches into ProSolutions facilities [18] Management's Comments on Operating Environment and Future Outlook - Management noted that local markets are under pressure due to interest-sensitive commercial construction, while mega project activity remains robust [21] - The company has not experienced cancellations on mega projects, although delays are typical due to design revisions and regulatory reviews [22] Other Important Information - The company expects to generate equipment rental revenue of $3.7 billion to $3.9 billion in 2025, which includes six months of forecasted H and E results [39] - Adjusted EBITDA is projected to be between $1.8 billion and $1.9 billion, implying an adjusted EBITDA margin of 42% to 43% [40] Q&A Session Summary Question: Comments on fleet setup and future CapEx - Management indicated that it is early in the integration process and adjustments to the fleet will occur primarily in the latter half of 2025 [44][46] Question: Confidence in stabilizing revenue base post-acquisition - Management confirmed that they have stabilized the revenue base and are seeing synergies occur since the acquisition [50][51] Question: Timing of overseas sales and used market conditions - Management expects approximately $750 million in dispositions in the second half of the year, with the used equipment market stabilizing [54][55] Question: Free cash flow guidance and baseline for next year - Management anticipates free cash flow generation of 10% to 15% off the revenue base, with a pro forma basis suggesting $500 million to $600 million for the year [60] Question: Cost synergies related to headcount - A significant portion of the $125 million in cost synergies is related to headcount reductions, which have been identified and planned [66][68] Question: Revenue synergy from cross-selling specialty products - Early synergy wins are being tracked, with training for the sales team expected to be completed by early 2026 [78] Question: EBITDA outlook and impact of employee turnover - Management indicated that the transition period will require adjustments to the business, including rightsizing the fleet and workforce [96]

Herc Holdings, which belongs to the Zacks Transportation - Equipment and Leasing industry, posted revenues of $984 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.38%. This compares to year-ago revenues of $848 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's ...

Financial Performance - Equipment rental revenue increased by 137% to $870 million in Q2 2025 compared to $765 million in Q2 2024[50] - Total revenues increased by 182% to $1002 billion in Q2 2025 compared to $848 million in Q2 2024[50] - Adjusted EBITDA was $406 million with a margin of 405% in Q2 2025[50] - Net loss was $(35) million, a (1500)% change, and adjusted net income was $56 million, a (243)% change[50] - The company successfully raised $44 billion in debt at 68% WACD[17] Fleet Management - Fleet expenditures at OEC were $314 million in Q2 2025[35] - Fleet disposals at OEC were $253 million in Q2 2025[37] - The average fleet age was 46 months as of June 30, 2025[39] - Q2 2025 disposals generated proceeds of approximately 44% of OEC[39] Strategic Initiatives - Completed the acquisition of H&E Equipment Services, integrating 162 branches[23] - Equipment rental revenue contribution from Herc legacy branches increased by 4% year-over-year, excluding Cinelease[54]

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report includes forward-looking statements based on current expectations and assumptions, subject to risks that could cause actual results to differ materially - The report includes forward-looking statements based on current expectations and assumptions, which are subject to various risks and uncertainties that could cause actual results to differ materially[9](index=9&type=chunk)[10](index=10&type=chunk) - Key factors that could cause actual results to differ include the cyclical nature and competitiveness of the industry, dependence on suppliers and IT systems, ability to attract talent, residual value risk of rental fleet, climate change impact, ability to execute strategic transactions (including H&E integration), and significant indebtedness[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's analysis of financial condition and operations [ITEM 1. Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements reflect significant H&E acquisition impacts, leading to increased assets, liabilities, and a net loss [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show significant increases in assets, liabilities, and goodwill, primarily driven by the H&E acquisition Condensed Consolidated Balance Sheets (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :-------------- | :---------------- | | Total Assets | $14,018 | $7,877 | | Rental equipment, net | $6,015 | $4,225 | | Intangible assets, net | $1,622 | $572 | | Goodwill | $2,901 | $670 | | Total Liabilities | $12,107 | $6,481 | | Long-term debt, net | $8,251 | $4,069 | | Total Equity | $1,911 | $1,396 | - Total assets increased by **$6,141 million**, or **78%**, from December 31, 2024, to June 30, 2025, primarily driven by the H&E acquisition[14](index=14&type=chunk) - Goodwill increased by **$2,231 million**, or **333%**, reflecting the significant impact of the H&E acquisition[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations reflect a net loss for both the three and six months ended June 30, 2025, primarily due to increased expenses Condensed Consolidated Statements of Operations (In millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $1,002 | $848 | $1,863 | $1,652 | | Total Expenses | $1,048 | $755 | $1,917 | $1,478 | | Income (loss) before income taxes | $(46) | $93 | $(54) | $174 | | Net income (loss) | $(35) | $70 | $(53) | $135 | | Basic EPS | $(1.17) | $2.46 | $(1.82) | $4.77 | | Diluted EPS | $(1.17) | $2.46 | $(1.82) | $4.75 | - The company reported a net loss of **$(35) million** for the three months ended June 30, 2025, a **150% decrease** from the net income of $70 million in the prior year, primarily due to increased transaction expenses, interest expense, and a loss on assets held for sale[17](index=17&type=chunk) - For the six months ended June 30, 2025, the company reported a net loss of **$(53) million**, a **139% decrease** from the net income of $135 million in the prior year, driven by similar factors[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The condensed consolidated statements of comprehensive income show a total comprehensive loss for the three and six months ended June 30, 2025 Condensed Consolidated Statements of Comprehensive Income (In millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(35) | $70 | $(53) | $135 | | Foreign currency translation adjustments | $17 | $(3) | $17 | $(9) | | Total comprehensive income (loss) | $(18) | $67 | $(36) | $126 | - Total comprehensive loss for the three months ended June 30, 2025, was **$(18) million**, compared to comprehensive income of $67 million in the prior year, primarily reflecting the net loss[19](index=19&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) The condensed consolidated statements of changes in equity show an increase in total equity, largely due to common stock issuance for the H&E acquisition Condensed Consolidated Statements of Changes in Equity (In millions) | Metric | Balance at Dec 31, 2024 | Net loss (6 months) | Stock-based compensation | Dividends declared | Issuance of common stock for H&E acquisition | Balance at June 30, 2025 | | :--------------------------------- | :-------------------- | :------------------ | :----------------------- | :----------------- | :------------------------------------------- | :--------------------- | | Total Equity | $1,396 | $(53) | $12 | $(40) | $584 | $1,911 | - Total equity increased by **$515 million** from December 31, 2024, to June 30, 2025, largely due to the issuance of **$584 million** in common stock for the H&E acquisition, partially offset by net losses and dividends[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows indicate significant cash usage in investing activities, offset by financing activities, primarily for the H&E acquisition Condensed Consolidated Statements of Cash Flows (In millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :----- | | Net cash provided by operating activities | $412 | $558 | $(146) | | Net cash used in investing activities | $(4,560) | $(700) | $(3,860) | | Net cash provided by financing activities | $4,118 | $141 | $3,977 | | Net change in cash and cash equivalents | $(30) | $(1) | $(29) | | Cash and cash equivalents at end of period | $53 | $70 | $(17) | - Cash used in investing activities increased significantly by **$3,860 million**, primarily due to **$4,251 million** for the H&E acquisition[24](index=24&type=chunk)[180](index=180&type=chunk) - Cash provided by financing activities increased by **$3,977 million**, driven by new debt issuances totaling **$3,467 million** and **$3,361 million** from revolving lines of credit and securitization to fund the H&E acquisition[27](index=27&type=chunk)[181](index=181&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1—Organization and Description of Business](index=12&type=section&id=Note%201%E2%80%94Organization%20and%20Description%20of%20Business) Herc Holdings Inc. is a leading equipment rental supplier in North America, offering a broad portfolio of equipment and ancillary services - Herc Holdings Inc. is a leading equipment rental supplier with **622 locations** in North America as of June 30, 2025[30](index=30&type=chunk) - The company offers a broad portfolio of equipment for rent, including aerial, earthmoving, material handling, and specialized solutions like ProSolutions® and ProContractor tools[30](index=30&type=chunk)[31](index=31&type=chunk) - Ancillary services include sales of used equipment, new equipment, parts and supplies, repair, maintenance, equipment management, and safety training[30](index=30&type=chunk) [Note 2—Basis of Presentation and Significant Accounting Policies](index=12&type=section&id=Note%202%E2%80%94Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) The basis of financial statement presentation, significant accounting estimates, and evaluation of new accounting pronouncements are outlined - The condensed consolidated financial statements are prepared in conformity with U.S. GAAP, with certain disclosures condensed or omitted for interim reporting per SEC rules[32](index=32&type=chunk) - Management's significant estimates include receivables allowances, depreciation, recoverability of long-lived assets, goodwill valuation, and accounting for income taxes[34](index=34&type=chunk) - The company is evaluating new accounting pronouncements: ASU 2023-09 (Improvements to Income Tax Disclosures) effective after December 15, 2024, and ASU 2024-03 (Disaggregation of Income Statement Expenses) effective after December 15, 2026[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 3—Revenue Recognition](index=13&type=section&id=Note%203%E2%80%94Revenue%20Recognition) The company's revenue recognition policies, primarily from equipment rental and ancillary sales and services, with most revenue from the United States, are detailed - The company's primary revenue is from equipment rental (ASC Topic 842), with ancillary sales and services (ASC Topic 606)[39](index=39&type=chunk)[40](index=40&type=chunk) - United States revenue represented approximately **93.5%** and **93.6%** of total revenue for the three and six months ended June 30, 2025, respectively[39](index=39&type=chunk) Revenue Breakdown (In millions) | Revenue Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Equipment rental (Topic 842) | $810 | $712 | $1,501 | $1,386 | | Delivery and pick-up (Topic 606) | $60 | $53 | $108 | $98 | | Sales of rental equipment (Topic 606) | $106 | $65 | $211 | $134 | | Sales of new equipment, parts & supplies (Topic 606) | $17 | $10 | $28 | $19 | | Service and other revenues (Topic 606) | $9 | $8 | $15 | $15 | | **Total Revenues** | **$1,002** | **$848** | **$1,863** | **$1,652** | [Note 4—Rental Equipment](index=17&type=section&id=Note%204%E2%80%94Rental%20Equipment) Details on the net carrying value of rental equipment, which significantly increased due to acquisitions, are provided Rental Equipment, Net (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------- | :-------------- | :---------------- | | Rental equipment (gross) | $8,325 | $6,423 | | Less: Accumulated depreciation | $(2,310) | $(2,198) | | **Rental equipment, net** | **$6,015** | **$4,225** | - The net carrying value of rental equipment increased by **$1,790 million**, or **42.4%**, from December 31, 2024, to June 30, 2025, primarily due to acquisitions[56](index=56&type=chunk) [Note 5—Business Combinations](index=18&type=section&id=Note%205%E2%80%94Business%20Combinations) The acquisition of H&E Equipment Services, Inc. for $4.8 billion, funded by new debt, and its expected strategic benefits, are detailed - On June 2, 2025, the company completed the acquisition of H&E Equipment Services, Inc. for a total purchase price of **$4.8 billion**, including **$2.9 billion** in cash and **$584 million** in common stock[59](index=59&type=chunk)[60](index=60&type=chunk) - The H&E acquisition was funded by new debt issuances and is expected to add scale, density, cross-sell opportunities, and increase equipment availability[59](index=59&type=chunk)[60](index=60&type=chunk) H&E Acquisition Purchase Price Allocation (In millions) | Asset/Liability | Amount | | :---------------------------- | :----- | | Rental equipment | $1,830 | | Customer relationships intangible | $1,070 | | Goodwill | $2,211 | | Net identifiable assets acquired | $2,619 | | Net assets acquired | $4,830 | - The company also completed the acquisition of Otay Mesa Sales in July 2024 for approximately **$273 million**, with goodwill of **$67 million**[65](index=65&type=chunk)[67](index=67&type=chunk) Pro Forma Supplementary Data (Six Months Ended June 30, 2025, In millions) | Metric | Herc | H&E | Total | | :-------------------------------- | :--- | :-- | :---- | | Historic/pro forma equipment rental revenue | $1,609 | $455 | $2,064 | | Historic/pro forma total revenues | $1,863 | $536 | $2,399 | | Pro forma pretax income | N/A | N/A | $7 | [Note 6—Goodwill and Intangible Assets](index=22&type=section&id=Note%206%E2%80%94Goodwill%20and%20Intangible%20Assets) The significant increase in goodwill and intangible assets, primarily due to the H&E acquisition, and related amortization, are detailed Goodwill (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Goodwill (net) | $2,901 | $670 | | Additions (primarily H&E acquisition) | $2,229 | $190 | Intangible Assets, Net (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :-------------- | :---------------- | | Customer-related and non-compete agreements | $1,318 | $276 | | Internally developed software | $33 | $25 | | Trade name | $271 | $271 | | **Total intangible assets, net** | **$1,622** | **$572** | - Amortization of intangible assets increased to **$31 million** for the six months ended June 30, 2025, from $20 million in the prior year, primarily due to the H&E and Otay acquisitions[76](index=76&type=chunk) [Note 7—Assets Held for Sale](index=23&type=section&id=Note%207%E2%80%94Assets%20Held%20for%20Sale) The classification of the Cinelease business as assets held for sale and the recorded loss due to market condition changes are explained - The Cinelease studio entertainment and lighting and grip equipment rental business is classified as assets held for sale, as its business model deviates from the company's growth strategy[77](index=77&type=chunk) - A **$49 million loss** was recorded during the second quarter of 2025 to adjust the carrying value of Cinelease net assets to fair value less estimated costs to sell, due to changed market conditions (labor strikes) and slower-than-anticipated return of productions[79](index=79&type=chunk) Assets and Liabilities Held for Sale (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total current assets held for sale | $23 | $17 | | Total long-term assets held for sale | $180 | $220 | | Total current liabilities held for sale | $19 | $15 | | Total long-term liabilities held for sale | $56 | $60 | [Note 8—Leases](index=24&type=section&id=Note%208%E2%80%94Leases) The company's lease arrangements for real estate, equipment, and vehicles, and the components of its net lease cost, are described - The company leases real estate, office equipment, and service vehicles with terms up to **22 years**, and also leases certain equipment for re-rental with variable payments not recorded on the balance sheet[81](index=81&type=chunk)[82](index=82&type=chunk) Components of Lease Expense (In millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $84 | $77 | | Finance lease cost | $10 | $9 | | Sublease income | $(34) | $(39) | | **Net lease cost** | **$60** | **$47** | - Net lease cost increased by **$13 million**, or **27.7%**, for the six months ended June 30, 2025, compared to the prior year[83](index=83&type=chunk) [Note 9—Debt](index=24&type=section&id=Note%209%E2%80%94Debt) The company's debt structure, including significant new issuances to fund the H&E acquisition, and its borrowing capacity, are detailed Company's Debt (In millions) | Debt Type | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :-------------- | :---------------- | | Senior Notes (2027, 2029, 2030, 2033) | $4,800 | $2,000 | | New ABL Credit Facility | $2,389 | — | | Prior ABL Credit Facility | — | $1,621 | | Term Loan Facility | $750 | — | | AR Facility | $357 | $400 | | Finance lease liabilities | $78 | $77 | | Unamortized debt issuance costs and discount | $(50) | $(12) | | **Total debt** | **$8,274** | **$4,086** | | Less: Current maturities of long-term debt | $(23) | $(17) | | **Total long-term debt, net** | **$8,251** | **$4,069** | - Total debt increased by **$4,188 million**, or **102.5%**, from December 31, 2024, to June 30, 2025, primarily due to new debt issuances to fund the H&E acquisition[84](index=84&type=chunk) - New debt issued on June 2, 2025, includes **$1.65 billion** of **7.00% Senior Notes** due 2030, **$1.1 billion** of **7.25% Senior Notes** due 2033, and a **$750 million Term Loan Facility**, along with a New ABL Credit Facility of up to **$4.0 billion**[88](index=88&type=chunk)[94](index=94&type=chunk)[100](index=100&type=chunk)[110](index=110&type=chunk) Borrowing Capacity and Availability (In millions, as of June 30, 2025) | Facility | Remaining Capacity | Availability Under Borrowing Base Limitation | | :---------------------- | :----------------- | :------------------------------------------- | | New ABL Credit Facility | $1,562 | $1,562 | | AR Facility | $43 | $16 | | **Total** | **$1,605** | **$1,578** | [Note 10—Financing Obligations](index=32&type=section&id=Note%2010%E2%80%94Financing%20Obligations) The company's financing obligations, primarily from non-qualifying sale-leaseback transactions, showing a slight decrease, are outlined Financing Obligations, Net (In millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Financing obligations (gross) | $105 | $107 | | Unamortized issuance costs | $(2) | $(2) | | Current maturities | $(5) | $(4) | | **Financing obligations, net** | **$98** | **$101** | - Financing obligations, primarily from non-qualifying sale-leaseback transactions, decreased slightly to **$98 million** net as of June 30, 2025[119](index=119&type=chunk) [Note 11—Income Taxes](index=33&type=section&id=Note%2011%E2%80%94Income%20Taxes) The income tax benefit for the period, driven by pre-tax losses and non-deductible transaction costs, and the assessment of new tax legislation, are explained - The company reported an income tax benefit of **$11 million** for the three months ended June 30, 2025, compared to a provision of $23 million in the prior year, primarily due to the pre-tax loss and non-deductible transaction costs[120](index=120&type=chunk) - For the six months ended June 30, 2025, the income tax benefit was **$1 million**, compared to a provision of $39 million in the prior year, driven by similar factors[121](index=121&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), enacted July 4, 2025, includes significant tax provisions, and the company is currently assessing its potential impacts on financial position, results of operations, and cash flows[122](index=122&type=chunk) [Note 12—Accumulated Other Comprehensive Income (Loss)](index=33&type=section&id=Note%2012%E2%80%94Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) The components of accumulated other comprehensive income (loss), primarily influenced by foreign currency translation adjustments, are detailed Accumulated Other Comprehensive Income (Loss) (In millions) | Component | Balance at Dec 31, 2024 | Other comprehensive loss (6 months) | Balance at June 30, 2025 | | :-------------------------------- | :---------------------- | :-------------------------- | :--------------------- | | Pension and Other Post-Employment Benefits | $(19) | — | $(19) | | Foreign Currency Items | $(123) | $17 | $(106) | | **Accumulated Other Comprehensive Income (Loss)** | **$(142)** | **$17** | **$(125)** | - Accumulated other comprehensive loss improved by **$17 million**, from **$(142) million** at December 31, 2024, to **$(125) million** at June 30, 2025, primarily due to positive foreign currency translation adjustments[124](index=124&type=chunk) [Note 13—Commitments and Contingencies](index=33&type=section&id=Note%2013%E2%80%94Commitments%20and%20Contingencies) The company's legal claims, indemnification obligations from the 2016 Spin-Off, and tax matters agreements, are addressed - The company is subject to various legal claims in the ordinary course of business and has established reserves for probable and estimable losses[125](index=125&type=chunk)[126](index=126&type=chunk) - Indemnification obligations include customary contractual indemnities and those specific to the 2016 Spin-Off from New Hertz, where the company assumed liabilities for its equipment rental business and a portion of shared liabilities[127](index=127&type=chunk)[128](index=128&type=chunk) - Under the tax matters agreement, the company indemnifies New Hertz for taxes and related losses if its actions cause the Spin-Off to be taxable[128](index=128&type=chunk) [Note 14—Fair Value Measurements](index=34&type=section&id=Note%2014%E2%80%94Fair%20Value%20Measurements) The fair value measurements of financial instruments, including cash equivalents, notes, and term loans, are described - The fair value of cash, accounts receivable, accounts payable, and accrued liabilities approximates their carrying values due to their short-term nature[129](index=129&type=chunk) - Cash equivalents, primarily money market accounts, are classified as **Level 1 assets** and measured at fair value using quoted prices in active markets[130](index=130&type=chunk) Fair Value of Notes and Term Loan (In millions, as of June 30, 2025) | Debt Instrument | Nominal Unpaid Principal Balance | Aggregate Fair Value | | :---------------------- | :------------------------------- | :------------------- | | 2027 Notes | $1,200 | $1,200 | | 2029 Notes | $800 | $821 | | 2030 Notes | $1,650 | $1,718 | | 2033 Notes | $1,100 | $1,150 | | Term Loan Facility | $750 | $752 | | **Total Notes and Term Loan** | **$5,500** | **$5,641** | [Note 15—Equity and Earnings (Loss) Per Share](index=35&type=section&id=Note%2015%E2%80%94Equity%20and%20Earnings%20%28Loss%29%20Per%20Share) The issuance of common stock for the H&E acquisition and the reported basic and diluted earnings (loss) per share, are detailed - Approximately **4.7 million shares** of common stock, valued at **$584 million**, were issued as part of the H&E acquisition on June 2, 2025[133](index=133&type=chunk) Earnings (Loss) Per Share (In millions, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss), basic and diluted | $(35) | $70 | $(53) | $135 | | Basic weighted average common shares | 30.0 | 28.4 | 29.2 | 28.3 | | Diluted weighted average common shares | 30.0 | 28.5 | 29.2 | 28.4 | | Basic EPS | $(1.17) | $2.46 | $(1.82) | $4.77 | | Diluted EPS | $(1.17) | $2.46 | $(1.82) | $4.75 | - Both basic and diluted EPS reported a loss for the three and six months ended June 30, 2025, a significant decline from positive earnings in the prior year periods[136](index=136&type=chunk) [Note 16—Arrangements with New Hertz](index=36&type=section&id=Note%2016%E2%80%94Arrangements%20with%20New%20Hertz) The company's ongoing agreements with New Hertz, including the Separation and Distribution Agreement and Tax Matters Agreement, are described - The company maintains a Separation and Distribution Agreement with New Hertz, established after its 2016 Spin-Off, which allocates legal matters, shared liabilities, and other intercompany arrangements[137](index=137&type=chunk)[139](index=139&type=chunk) - A Tax Matters Agreement governs the parties' rights and obligations regarding tax liabilities, benefits, attributes, and contests following the Spin-Off[140](index=140&type=chunk) [Note 17—Segment Information](index=36&type=section&id=Note%2017%E2%80%94Segment%20Information) The company operates as a single reportable segment: equipment rental, with the CEO as the Chief Operating Decision Maker - The company operates as a single reportable segment: equipment rental, which derives revenues from a broad and fungible fleet[141](index=141&type=chunk) - The Chief Executive Officer, as the Chief Operating Decision Maker, evaluates performance and allocates resources, particularly for new equipment purchases and capital allocation, using net income[142](index=142&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting the significant impact of the H&E acquisition on financial performance, liquidity, and capital structure [OVERVIEW OF OUR BUSINESS AND OPERATING ENVIRONMENT](index=37&type=section&id=OVERVIEW%20OF%20OUR%20BUSINESS%20AND%20OPERATING%20ENVIRONMENT) An overview of the company's business, operating environment, and factors influencing profitability, including the H&E acquisition, is provided - The company's profitability is influenced by rental volume, mix, pricing, equipment utilization, equipment residual values, and interest rates[145](index=145&type=chunk) - The acquisition of H&E Equipment Services, Inc. for **$4.8 billion** significantly expanded the company's market presence with approximately **160 branches** in over **30 U.S. states**[146](index=146&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk) - The operating environment is characterized by elevated interest rates and economic uncertainty, but the company's diversification across industries and project types contributes to business resiliency[151](index=151&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), enacted July 4, 2025, includes significant tax provisions, and the company is assessing its potential impacts[153](index=153&type=chunk) - The business is seasonal, with lower demand in winter months and heightened activity in the third and fourth quarters, which the company mitigates by managing fleet capacity and expanding its customer base[154](index=154&type=chunk) [RESULTS OF OPERATIONS](index=39&type=section&id=RESULTS%20OF%20OPERATIONS) An analysis of the company's financial performance for the three and six months ended June 30, 2025, compared to the prior year, is presented [Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024](index=39&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030%2C%202024) A comparison of the company's financial results for the three months ended June 30, 2025, against the prior year, highlighting revenue and expense changes, is presented Key Financial Highlights (Three Months Ended June 30, In millions) | Metric | 2025 | 2024 | Change | Change % | | :--------------------------------------- | :--- | :--- | :----- | :------- | | Total revenues | $1,002 | $848 | $154 | 18% | | Equipment rental revenue | $870 | $765 | $105 | 14% | | Sales of rental equipment | $106 | $65 | $41 | 63% | | Direct operating expenses | $379 | $326 | $53 | 16% | | Transaction expenses | $73 | $3 | $70 | NM | | Interest expense, net | $86 | $63 | $23 | 37% | | Loss on assets held for sale | $49 | — | $49 | NM | | Net income (loss) | $(35) | $70 | $(105) | (150)% | - Equipment rental revenue increased **14%** to **$870 million**, driven by acquisitions, but on a pro forma basis, it decreased **4%** due to H&E acquisition disruption and market moderation[156](index=156&type=chunk) - Sales of rental equipment increased **63%** to **$106 million**, but the margin decreased to **19%** (from 31% in 2024) due to normalization of used equipment pricing[157](index=157&type=chunk) - Transaction expenses surged by **$70 million** to **$73 million**, primarily due to advisory fees (**$27 million**) and commitment fees (**$21 million**) related to the H&E acquisition[162](index=162&type=chunk) [Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024](index=40&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030%2C%202024) A comparison of the company's financial results for the six months ended June 30, 2025, against the prior year, detailing revenue and expense changes, is presented Key Financial Highlights (Six Months Ended June 30, In millions) | Metric | 2025 | 2024 | Change | Change % | | :--------------------------------------- | :--- | :--- | :----- | :------- | | Total revenues | $1,863 | $1,652 | $211 | 13% | | Equipment rental revenue | $1,609 | $1,484 | $125 | 8% | | Sales of rental equipment | $211 | $134 | $77 | 57% | | Direct operating expenses | $706 | $633 | $73 | 12% | | Transaction expenses | $147 | $6 | $141 | NM | | Interest expense, net | $148 | $124 | $24 | 19% | | Loss on assets held for sale | $49 | — | $49 | NM | | Net income (loss) | $(53) | $135 | $(188) | (139)% | - Equipment rental revenue increased **8%** to **$1,609 million**, but on a pro forma basis, it decreased **3.0%** due to H&E acquisition disruption and market moderation[165](index=165&type=chunk) - Transaction expenses increased by **$141 million** to **$147 million**, including a **$64 million termination fee** for H&E, advisory fees, and commitment fees related to the Bridge Facility[171](index=171&type=chunk) - Interest expense, net, increased **19%** to **$148 million**, driven by approximately **$4.4 billion** in increased borrowings for the H&E acquisition at a weighted average effective interest rate of **6.8%**[172](index=172&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's cash flows, capital expenditures, borrowing capacity, and debt covenants, emphasizing the impact of the H&E acquisition, are discussed [Cash Flows](index=41&type=section&id=Cash%20Flows) An analysis of the company's cash flow activities, including operating, investing, and financing, with significant impacts from the H&E acquisition, is presented Cash Flow Summary (Six Months Ended June 30, In millions) | Cash Flow Activity | 2025 | 2024 | Change | | :------------------------------------ | :--- | :--- | :----- | | Operating activities | $412 | $558 | $(146) | | Investing activities | $(4,560) | $(700) | $(3,860) | | Financing activities | $4,118 | $141 | $3,977 | | Net change in cash and cash equivalents | $(30) | $(1) | $(29) | - Operating cash flow decreased by **$146 million** due to decreased profitability (transaction expenses) and timing of payments[179](index=179&type=chunk) - Investing cash flow increased by **$3,860 million**, primarily due to the **$4,251 million** cash portion of the H&E acquisition[180](index=180&type=chunk) - Financing cash flow increased by **$3,977 million**, driven by **$3,467 million** from long-term debt issuance and **$3,361 million** from revolving lines of credit and securitization to fund the H&E acquisition[181](index=181&type=chunk) [Capital Expenditures](index=42&type=section&id=Capital%20Expenditures) Details on the company's capital expenditures for rental equipment, including acquisitions and disposals, and net expenditures, are provided Rental Equipment Capital Expenditures (Six Months Ended June 30, In millions) | Metric | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Rental equipment expenditures | $421 | $468 | | Disposals of rental equipment | $(183) | $(125) | | **Net rental equipment expenditures** | **$238** | **$343** | - Net capital expenditures for rental equipment decreased by **$105 million**, or **30.6%**, for the six months ended June 30, 2025, as the company returned to a normal seasonal cadence of equipment deliveries and disposals[185](index=185&type=chunk) [Borrowing Capacity and Availability](index=44&type=section&id=Borrowing%20Capacity%20and%20Availability) The company's borrowing capacity and availability under its credit facilities, subject to collateralized assets, are outlined - The company's borrowing capacity is determined by its New ABL Credit Facility and AR Facility, subject to the value of collateralized assets (Borrowing Base)[186](index=186&type=chunk) Borrowing Capacity and Availability (In millions, as of June 30, 2025) | Facility | Remaining Capacity | Availability Under Borrowing Base Limitation | | :---------------------- | :----------------- | :------------------------------------------- | | New ABL Credit Facility | $1,562 | $1,562 | | AR Facility | $43 | $16 | | **Total** | **$1,605** | **$1,578** | - As of June 30, 2025, **$49 million** of standby letters of credit were issued and outstanding, with **$201 million** available under the New ABL Credit Facility's sublimit[188](index=188&type=chunk) [Covenants](index=44&type=section&id=Covenants) The covenants in the company's debt agreements, limiting certain financial and operational activities, are described - The company's debt agreements contain covenants limiting its ability to dispose of assets, incur additional indebtedness, make restricted payments (including dividends), create liens, and engage in certain transactions[189](index=189&type=chunk) - While not subject to ongoing financial maintenance covenants, a minimum fixed charge coverage ratio of **1:1** applies if liquidity falls below certain levels; this covenant was not applicable as of June 30, 2025, due to maintained liquidity[190](index=190&type=chunk) [Dividends](index=45&type=section&id=Dividends) The declared quarterly dividend and the discretionary nature of future dividend declarations are reported - A quarterly dividend of **$0.70 per share** was declared on May 16, 2025, payable on June 13, 2025[194](index=194&type=chunk) - Future dividend declarations are discretionary and depend on business conditions, financial health, earnings, liquidity, capital requirements, and contractual restrictions[194](index=194&type=chunk) [OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS](index=45&type=section&id=OFF-BALANCE%20SHEET%20COMMITMENTS%20AND%20ARRANGEMENTS) No material changes to the company's off-balance sheet commitments and indemnification obligations are confirmed - There have been no material changes to the company's indemnification obligations as of June 30, 2025, as previously disclosed in its Annual Report on Form 10-K[195](index=195&type=chunk) [RECENT ACCOUNTING PRONOUNCEMENTS](index=45&type=section&id=RECENT%20ACCOUNTING%20PRONOUNCEMENTS) Recent accounting pronouncements and their potential impact are discussed, referring to Note 2 - For a discussion of recent accounting pronouncements, refer to Note 2, 'Basis of Presentation and Significant Accounting Policies,' in Part I, Item 1 of this Report[197](index=197&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and fuel prices, managed through operating and financing activities - The company is exposed to market risks including changes in interest rates (including credit spreads), foreign currency exchange rates, and fluctuations in fuel prices[198](index=198&type=chunk) - Market risks are managed through regular operating and financing activities, and, when appropriate, through the use of derivative financial instruments for risk management, not speculation[198](index=198&type=chunk) - As of June 30, 2025, there have been no material changes to the market risk disclosures from the Annual Report on Form 10-K for the year ended December 31, 2024[199](index=199&type=chunk) [ITEM 4. Controls and Procedures](index=46&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The effectiveness of disclosure controls and procedures and changes in internal control over financial reporting, excluding the H&E acquisition, are addressed [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The effectiveness of disclosure controls and procedures is confirmed, with the H&E acquisition excluded from the evaluation - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[200](index=200&type=chunk) - The H&E acquisition, completed on June 2, 2025, was excluded from the evaluation of disclosure controls and procedures, as permitted by SEC guidance during the first year of an acquisition[201](index=201&type=chunk) [Changes in Internal Control Over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting during the quarter are reported - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[202](index=202&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) Additional information including legal proceedings, risk factors, equity security sales, and exhibits, is provided [ITEM 1. Legal Proceedings](index=47&type=section&id=ITEM%201.%20Legal%20Proceedings) Certain pending legal proceedings are described, referring to Note 13 - For a description of certain pending legal proceedings, refer to Note 13, 'Commitments and Contingencies,' in Part I, Item 1 of this Report[204](index=204&type=chunk) [ITEM 1A. Risk Factors](index=47&type=section&id=ITEM%201A.%20Risk%20Factors) New risk factors primarily related to the H&E acquisition, including integration challenges and potential failure to realize benefits, are highlighted - No material changes to risk factors from the prior Annual Report on Form 10-K, except for those specifically related to the H&E acquisition[205](index=205&type=chunk) - Key risks of the H&E acquisition include the potential failure to realize anticipated benefits and synergies, difficulties in integrating operations and systems, and challenges in retaining key personnel and customer relationships[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - These risks could lead to higher integration costs, longer timelines, and adverse impacts on the company's business, financial condition, operating results, and common stock price[207](index=207&type=chunk)[208](index=208&type=chunk)[211](index=211&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's share repurchase program is detailed, confirming no repurchases were made during the period - The company has a **$1 billion Share Repurchase Program**, with an approximate dollar value of **$161 million** remaining available for purchases as of June 30, 2025[212](index=212&type=chunk) - No share repurchases were made during the six months ended June 30, 2025[212](index=212&type=chunk) - The timing and extent of repurchases are discretionary and depend on strategic priorities, market conditions, share price, liquidity targets, and contractual/regulatory requirements[212](index=212&type=chunk) [ITEM 5. Other Information](index=48&type=section&id=ITEM%205.%20Other%20Information) No other information is reported under this item - No other information is reported under this item[213](index=213&type=chunk) [ITEM 6. Exhibits](index=49&type=section&id=ITEM%206.%20Exhibits) All exhibits filed with the Form 10-Q, including merger agreements, debt indentures, and certifications, are listed - Exhibit 2.1: Agreement and Plan of Merger for H&E Equipment Services, Inc., dated February 19, 2025[215](index=215&type=chunk) - Exhibit 4.1: Indenture (including forms of Notes), dated June 2, 2025, related to new debt issuances[215](index=215&type=chunk) - Exhibits 10.1-10.6: Amended and Restated Credit Agreement for the New ABL Credit Facility and Credit Agreement for the Term Loan Facility, along with related guarantee and collateral agreements, dated June 2, 2025[215](index=215&type=chunk) - Exhibits 31.1 and 31.2: Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002[215](index=215&type=chunk) [SIGNATURE](index=51&type=section&id=SIGNATURE) The report is signed by Mark Humphrey, Senior Vice President and Chief Financial Officer, on behalf of Herc Holdings Inc - The report was signed by Mark Humphrey, Senior Vice President and Chief Financial Officer of Herc Holdings Inc[220](index=220&type=chunk) - The signing date of the report was July 29, 2025[220](index=220&type=chunk)

[Report Highlights and CEO Commentary](index=1&type=section&id=1.%20Report%20Highlights%20and%20CEO%20Commentary) Herc Holdings reported Q2 2025 results, highlighting the H&E acquisition, revenue growth, net loss from acquisition costs, and CEO commentary on integration [Second Quarter 2025 Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Highlights) Herc Holdings Inc. reported its Q2 2025 financial results, highlighted by the completion of the H&E acquisition, significant revenue growth, but also a net loss primarily due to acquisition-related costs and asset write-downs. Adjusted EBITDA showed growth, but margins slightly declined * H&E acquisition **closed on June 2, 2025**[7](index=7&type=chunk) * Completed financing of **$4.4 billion** of new debt at a weighted average interest rate of **6.8%**[7](index=7&type=chunk) Second Quarter 2025 Revenue Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :----------------------- | :----------------- | :----------------- | :--------- | | Total Revenues | $1,002 | $848 | 18% | | Equipment Rental Revenue | $870 | $765 | 14% | * **Net loss of $35 million** or **$1.17 per share**, primarily driven by H&E acquisition transaction costs and loss on Cinelease assets held for sale[7](index=7&type=chunk) * **Adjusted EBITDA increased 13%** to **$406 million**, with an adjusted EBITDA margin of **41%**[7](index=7&type=chunk) [CEO Commentary on Acquisition and Integration](index=1&type=section&id=1.2%20CEO%20Commentary%20on%20Acquisition%20and%20Integration) CEO Larry Silber emphasized the strategic importance of the H&E acquisition, the largest in the industry, for accelerating market growth, geographic diversification, and expanding fleet. He noted positive initial integration efforts but acknowledged dis-synergies from the acquisition process and moderation in the commercial sector, which are factored into the updated 2025 outlook * The H&E acquisition, completed on June 2nd, is the **largest in the industry** and will accelerate the company's strategy for market-leading growth and superior value creation[4](index=4&type=chunk) * The acquisition provides **geographic and customer diversification**, a substantially expanded footprint in key regions, and a larger fleet[4](index=4&type=chunk) * Current focus is on **integration, optimization, and ensuring delivery of revenue and cost synergy targets**[5](index=5&type=chunk) * H&E's performance was impacted by disruptions during the acquisition bidding process, resulting in **dis-synergies**[5](index=5&type=chunk) * The new 2025 outlook incorporates these **dis-synergies** and continued moderation in the interest-rate sensitive commercial sector, offset by strength in mega project activity and growth in specialty solutions[5](index=5&type=chunk) [Financial Results Overview](index=1&type=section&id=2.%20Financial%20Results%20Overview) Q2 and H1 2025 results show revenue growth from H&E acquisition, net losses from transaction costs and asset write-downs, and increased Adjusted EBITDA with margin compression [Second Quarter 2025 Financial Results](index=1&type=section&id=2.1%20Second%20Quarter%202025%20Financial%20Results) Herc Holdings experienced significant revenue growth in Q2 2025, largely due to the H&E acquisition. However, the quarter saw a net loss due to substantial transaction expenses and a loss on assets held for sale. Adjusted EBITDA showed growth, but margins slightly declined Q2 2025 Revenue Performance (YoY) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :----------------------- | :----------------- | :----------------- | :--------- | | Total Revenues | $1,002 | $848 | 18% | | Equipment Rental Revenue | $870 | $765 | 14% | | Sales of Rental Equipment | $106 | $65 | 63% | * Dollar utilization **decreased to 38.3%** in Q2 2025 from **41.0%** in Q2 2024, primarily reflecting the impact from the H&E acquisition and year-over-year decline of the Cinelease business[8](index=8&type=chunk) Q2 2025 Profitability Metrics (YoY) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change | | :-------------------- | :----------------- | :----------------- | :------- | | Net Income (Loss) | $(35) | $70 | $(105)M | | Adjusted Net Income | $56 | $74 | (24%) | | Adjusted EPS (Diluted) | $1.87 | $2.60 | (28%) | | Adjusted EBITDA | $406 | $360 | 13% | | Adjusted EBITDA Margin | 40.5% | 42.5% | (2.0) pts | [Key Expense Items (Q2 2025)](index=1&type=section&id=2.1.2%20Key%20Expense%20Items%20(Q2%202025)) Q2 2025 expenses increased due to higher operating costs, depreciation from fleet expansion, significant H&E acquisition transaction fees, and higher interest expense * Direct operating expenses were **$379 million** (**43.6%** of equipment rental revenue), up from **$326 million** (**42.6%**) in the prior-year period, related to lower fixed cost absorption[8](index=8&type=chunk) * Depreciation of rental equipment **increased 18% to $195 million** due to higher year-over-year average fleet size, primarily from the H&E acquisition[10](index=10&type=chunk) * Transaction expenses **increased significantly to $73 million** from **$3 million** in the prior-year period, primarily due to advisory fees (**$27 million**) and commitment fees related to the bridge facility (**$21 million**) for the H&E acquisition[10](index=10&type=chunk) * Interest expense **increased to $86 million** from **$63 million** in the prior-year period due to new debt facilities issued in June 2025 to fund the H&E acquisition[10](index=10&type=chunk) * **Loss on assets held for sale was $49 million** to adjust the carrying value of Cinelease net assets to its fair value less estimated costs to sell[10](index=10&type=chunk) * Selling, general and administrative expenses **improved to 14.6%** of equipment rental revenue (from **15.3% YoY**) due to initial cost synergies from H&E corporate overhead reduction and overall cost control measures[10](index=10&type=chunk) [First Half 2025 Financial Results](index=2&type=section&id=2.2%20First%20Half%202025%20Financial%20Results) For the first half of 2025, Herc Holdings reported a substantial increase in total revenues, driven by equipment rental growth and acquisitions. However, the company recorded a net loss, primarily due to significant transaction expenses related to the H&E acquisition and a loss on assets held for sale. Adjusted EBITDA increased, but margins compressed H1 2025 Revenue Performance (YoY) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change (%) | | :----------------------- | :----------------- | :----------------- | :--------- | | Total Revenues | $1,863 | $1,652 | 13% | | Equipment Rental Revenue | $1,609 | $1,484 | 8% | | Sales of Rental Equipment | $211 | $134 | 57% | * Dollar utilization **decreased to 38.0%** in H1 2025 from **40.4%** in H1 2024, primarily reflecting the impact from the H&E acquisition and year-over-year decline of the Cinelease business[10](index=10&type=chunk) H1 2025 Profitability Metrics (YoY) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change | | :-------------------- | :----------------- | :----------------- | :------- | | Net Income (Loss) | $(53) | $135 | $(188)M | | Adjusted Net Income | $93 | $141 | (34%) | | Adjusted EPS (Diluted) | $3.17 | $4.96 | (36%) | | Adjusted EBITDA | $745 | $699 | 7% | | Adjusted EBITDA Margin | 40.0% | 42.3% | (2.3) pts | [Key Expense Items (H1 2025)](index=2&type=section&id=2.2.2%20Key%20Expense%20Items%20(H1%202025)) H1 2025 expenses rose from increased operating costs, depreciation, amortization of intangibles, substantial H&E acquisition transaction fees, and higher interest expense * Direct operating expenses were **$706 million** (**43.9%** of equipment rental revenue), up from **$633 million** (**42.7%**) in the prior-year period, related to lower fixed cost absorption[10](index=10&type=chunk) * Depreciation of rental equipment **increased 13% to $367 million** due to higher year-over-year average fleet size, primarily from the H&E acquisition[10](index=10&type=chunk) * Non-rental depreciation and amortization **increased 32% to $78 million**, primarily due to amortization of intangible assets related to the H&E and Otay acquisitions and an increase in non-rental asset depreciation[10](index=10&type=chunk) * Transaction expenses **increased to $147 million** from **$6 million** in the prior-year period, including a **$64 million termination fee** paid on behalf of H&E, advisory fees (**$27 million**), and bridge facility commitment fees (**$21 million**)[14](index=14&type=chunk) * Interest expense **increased to $148 million** from **$124 million** in the prior-year period due to new debt facilities issued in June 2025 to fund the H&E acquisition[14](index=14&type=chunk) * **Loss on assets held for sale was $49 million** to adjust the carrying value of Cinelease net assets to its fair value less estimated costs to sell[14](index=14&type=chunk) * Selling, general and administrative expenses **improved to 15.2%** of equipment rental revenue (from **15.4% YoY**) due to initial cost synergies from H&E corporate overhead reduction and overall cost control measures[14](index=14&type=chunk) [Operational and Fleet Performance](index=3&type=section&id=3.%20Operational%20and%20Fleet%20Performance) Operational performance reflects significant fleet expansion from the H&E acquisition, stable fleet age, increased net debt and leverage, but maintained substantial liquidity [Rental Fleet Metrics](index=3&type=section&id=3.1%20Rental%20Fleet%20Metrics) Herc Holdings' rental fleet significantly expanded in the first half of 2025, primarily due to the H&E acquisition, while maintaining a stable average age. The company also continued its expansion with new greenfield locations * **Total fleet was approximately $9.9 billion** at Original Equipment Cost (OEC) as of June 30, 2025[15](index=15&type=chunk) * **Average fleet at OEC in the second quarter increased 21%** compared to the prior-year period[15](index=15&type=chunk) * **Average fleet age was 46 months** at June 30, 2025, compared to 47 months at June 30, 2024[15](index=15&type=chunk) * The Company opened **11 new greenfield locations** during the six months ended June 30, 2025[15](index=15&type=chunk) Net Rental Equipment Capital Expenditures (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Rental equipment expenditures | $421 | $468 | | Proceeds from disposal of rental equipment | $(183) | $(125) | | Net rental equipment capital expenditures | $238 | $343 | [Capital Management and Liquidity](index=3&type=section&id=3.2%20Capital%20Management%20and%20Liquidity) The H&E acquisition significantly impacted Herc Holdings' debt and leverage, increasing net debt to $8.3 billion and net leverage to 3.8x. Despite this, the company maintained substantial liquidity * Net debt was **$8.3 billion** as of June 30, 2025[15](index=15&type=chunk) * **Net leverage increased to 3.8x** as of June 30, 2025, compared to **2.6x** in the same prior-year period, calculated using pro forma trailing twelve-month adjusted EBITDA including H&E[13](index=13&type=chunk)[15](index=15&type=chunk) * Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to **approximately $1.6 billion of liquidity** as of June 30, 2025[15](index=15&type=chunk) * The Company declared its **quarterly dividend of $0.70**, paid on June 13, 2025[15](index=15&type=chunk) [2025 Full Year Guidance](index=4&type=section&id=4.%202025%20Full%20Year%20Guidance) Herc Holdings updated its full-year 2025 guidance, excluding the Cinelease business, reflecting the impact of the H&E acquisition and ongoing market conditions. The company aims to gain market share through fleet investment, optimization, acquisitions, and cross-selling Updated Full Year 2025 Guidance (Excluding Cinelease) | Metric | Range | | :------------------------------ | :-------------------- | | Equipment rental revenue | $3.7 billion to $3.9 billion | | Adjusted EBITDA | $1.8 billion to $1.9 billion | | Net rental equipment capital expenditures | $400 million to $600 million | | Gross capex | $900 million to $1.1 billion | * The Company expects to **continue to gain market share** by capturing an **outsized position of the forecasted higher construction spending in 2025**[17](index=17&type=chunk) * Strategy includes **investing in its fleet, optimizing its existing fleet, capitalizing on recent acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio**[17](index=17&type=chunk) [Company Profile](index=4&type=section&id=5.%20Company%20Profile) Herc Holdings Inc., operating through its Herc Rentals Inc. subsidiary, is a leading full-line rental supplier in North America. With the recent acquisition of H&E Equipment Services, it now boasts 622 locations and approximately $5.1 billion in pro forma total revenues for 2024, offering a wide range of equipment and specialized solutions * **Founded in 1965**, Herc Holdings Inc. operates through its Herc Rentals Inc. subsidiary[20](index=20&type=chunk) * With the H&E Equipment Services acquisition, the company has **622 locations** across North America[20](index=20&type=chunk) * **2024 pro forma total revenues were approximately $5.1 billion**[20](index=20&type=chunk) * Offers a classic fleet including aerial, earthmoving, material handling, trucks, and other equipment, along with ProSolutions® offering industry-specific, solutions-based services[20](index=20&type=chunk) * Employs **approximately 10,200 employees**[20](index=20&type=chunk) [Supplemental Financial Schedules](index=7&type=section&id=6.%20Supplemental%20Financial%20Schedules) Financial schedules detail Q2 and H1 2025 net losses, balance sheet changes post-H&E acquisition, cash flow shifts, and comprehensive non-GAAP reconciliations for performance evaluation [Consolidated Statements of Operations](index=7&type=section&id=6.1%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a shift from net income in Q2 and H1 2024 to a net loss in Q2 and H1 2025, primarily driven by increased expenses related to the H&E acquisition and a loss on assets held for sale, despite significant revenue growth Consolidated Statements of Operations (Selected Data, in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Total Revenues | $1,002 | $848 | $1,863 | $1,652 | | Total Expenses | $1,048 | $755 | $1,917 | $1,478 | | Income (Loss) before income taxes | $(46) | $93 | $(54) | $174 | | Net Income (Loss) | $(35) | $70 | $(53) | $135 | | Diluted EPS | $(1.17) | $2.46 | $(1.82) | $4.75 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=6.2%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, reflects a significant increase in total assets, liabilities, and equity compared to December 31, 2024, largely due to the H&E acquisition, which notably increased rental equipment, property and equipment, intangible assets, goodwill, and long-term debt Condensed Consolidated Balance Sheets (Selected Data, in millions) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total Assets | $14,018 | $7,877 | | Rental equipment, net | $6,015 | $4,225 | | Intangible assets, net | $1,622 | $572 | | Goodwill | $2,901 | $670 | | Total Liabilities | $12,107 | $6,481 | | Long-term debt, net | $8,251 | $4,069 | | Total Equity | $1,911 | $1,396 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=6.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2025, cash flows from operating activities decreased, while investing activities saw a substantial net outflow primarily due to the H&E acquisition. Financing activities generated a significant net inflow from new debt issuances and revolving lines of credit to fund the acquisition Condensed Consolidated Statements of Cash Flows (Selected Data, in millions) | Metric | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | | Net cash provided by operating activities | $412 | $558 | | Net cash used in investing activities | $(4,560) | $(700) | | Net cash provided by financing activities | $4,118 | $141 | | Net change in cash and cash equivalents | $(30) | $(1) | * **Acquisitions, net of cash acquired, resulted in a $4,251 million outflow** in H1 2025, significantly higher than **$290 million** in H1 2024[30](index=30&type=chunk) * Proceeds from issuance of long-term debt were **$3,467 million** in H1 2025, up from **$800 million** in H1 2024[30](index=30&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=6.4%20Non-GAAP%20Reconciliations) This section provides reconciliations and definitions for various non-GAAP financial measures, including EBITDA, Adjusted EBITDA, REBITDA, Adjusted Net Income, Adjusted EPS, and Free Cash Flow, which management uses to evaluate core operating performance and provide a more comparable view of results * **Non-GAAP measures are used by management to evaluate operating performance and period-over-period performance of the core business without regard to potential distortions**[23](index=23&type=chunk) * **These measures are frequently used by security analysts, institutional investors, and other interested parties in the evaluation of companies in the industry**[23](index=23&type=chunk) * **Non-GAAP measures should not be considered in isolation or as a substitute for reported results prepared in accordance with GAAP**[23](index=23&type=chunk) [EBITDA and Adjusted EBITDA](index=10&type=section&id=6.4.1%20EBITDA%20and%20Adjusted%20EBITDA) This section defines and reconciles EBITDA and Adjusted EBITDA, key non-GAAP measures used to assess core operating performance by excluding non-recurring and non-cash items * EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment, and non-rental depreciation and amortization[32](index=32&type=chunk) * Adjusted EBITDA further includes transaction-related costs, restructuring charges, non-cash stock-based compensation, loss on extinguishment of debt, impairment charges, and loss on assets held for sale[32](index=32&type=chunk) Adjusted EBITDA and Margin (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Adjusted EBITDA | $406 | $360 | $745 | $699 | | Adjusted EBITDA Margin | 40.5% | 42.5% | 40.0% | 42.3% | [EBITDA, Adjusted EBITDA, and REBITDA Excluding Studio Entertainment](index=11&type=section&id=6.4.2%20EBITDA,%20Adjusted%20EBITDA,%20and%20REBITDA%20Excluding%20Studio%20Entertainment) These non-GAAP metrics are presented excluding the studio entertainment business (Cinelease) to provide a clearer view of the core rental business's operating performance * These metrics are adjusted to exclude the studio entertainment business (Cinelease) due to the intent to sell that business, providing the operating performance of the remaining core business[37](index=37&type=chunk)[40](index=40&type=chunk) Adjusted EBITDA and REBITDA (Ex-Studio, Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 (Ex-Studio) | Q2 2024 (Ex-Studio) | | :-------------------- | :------------------ | :------------------ | | Equipment rental revenue | $854 | $739 | | Total revenues | $984 | $819 | | Adjusted EBITDA | $405 | $352 | | Adjusted EBITDA margin | 41.2% | 43.0% | | Rental Adjusted EBITDA (REBITDA) | $378 | $330 | | Adjusted REBITDA margin | 43.9% | 44.2% | Adjusted EBITDA and REBITDA (Ex-Studio, H1 2025 vs H1 2024, in millions) | Metric | H1 2025 (Ex-Studio) | H1 2024 (Ex-Studio) | | :-------------------- | :------------------ | :------------------ | | Equipment rental revenue | $1,578 | $1,429 | | Total revenues | $1,828 | $1,593 | | Adjusted EBITDA | $743 | $681 | | Adjusted EBITDA margin | 40.6% | 42.7% | | Rental Adjusted EBITDA (REBITDA) | $685 | $634 | | Adjusted REBITDA margin | 43.1% | 43.9% | [Adjusted Net Income and Adjusted Earnings Per Diluted Share](index=13&type=section&id=6.4.3%20Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20Per%20Diluted%20Share) These non-GAAP measures adjust net income and EPS to exclude non-core items like transaction costs and asset sale losses, offering a more comparable view of operating results * Adjusted Net Income and Adjusted Earnings Per Diluted Share are presented to evaluate results of operations on a more comparable basis, excluding items not indicative of core operating results such as transaction-related costs and loss on assets held for sale[42](index=42&type=chunk) Adjusted Net Income and Adjusted EPS (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------ | :------ | :------ | :------ | :------ | | Net Income (Loss) | $(35) | $70 | $(53) | $135 | | Transaction related costs | $73 | $3 | $147 | $6 | | Loss on assets held for sale | $49 | — | $49 | — | | Adjusted Net Income | $56 | $74 | $93 | $141 | | Adjusted Earnings per diluted share | $1.87 | $2.60 | $3.17 | $4.96 | [Free Cash Flow](index=14&type=section&id=6.4.4%20Free%20Cash%20Flow) Free cash flow, a non-GAAP measure, is reconciled to operating cash flow, indicating the company's ability to service debt, fund acquisitions, and forecast future periods * Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment and property and equipment[46](index=46&type=chunk) * This measure is used by management in analyzing the Company's ability to service and repay its debt, fund potential acquisitions, and forecast future periods[46](index=46&type=chunk) Free Cash Flow (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :----------------------------------- | :--- | :--- | | Net cash provided by operating activities | $412 | $558 | | Net rental equipment expenditures | $(238) | $(343) | | Non-rental capital expenditures | $(80) | $(71) | | Free cash flow | $103 | $148 | [Additional Information](index=4&type=section&id=7.%20Additional%20Information) This section includes cautionary forward-looking statements, definitions of key operating measures, and investor relations contact and webcast details [Forward-Looking Statements](index=5&type=section&id=7.1%20Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, highlighting that such statements are based on current expectations and assumptions, and actual results may differ materially due to various risks and uncertainties, many of which are beyond the company's control * Forward-looking statements are generally identified by words such as 'estimates,' 'expects,' 'anticipates,' 'projects,' 'plans,' 'intends,' 'believes,' 'forecasts,' 'looks,' and future or conditional verbs[21](index=21&type=chunk) * All forward-looking statements are based upon current expectations and various assumptions, and there can be no assurance that current expectations will be achieved[21](index=21&type=chunk) * Actual results could differ materially due to future events, risks, and uncertainties, including the cyclical nature of the industry, competitiveness, dependence on key suppliers, reliance on IT systems, ability to attract talent, residual value risk, climate change, ability to execute strategic transactions, significant indebtedness, and ability to integrate the H&E acquisition[21](index=21&type=chunk) [Operating Measures Definitions](index=5&type=section&id=7.2%20Operating%20Measures%20Definitions) This section defines key operating measures used in the report, specifically 'Dollar utilization' and 'OEC' (Original Equipment Cost), based on the guidelines of the American Rental Association (ARA) * Dollar utilization is calculated by dividing rental revenue (excluding re-rent, delivery, pick-up, and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on ARA guidelines[22](index=22&type=chunk) * OEC (Original Equipment Cost) is the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs, with the basis of refurbished assets reset at the refurbishment date, based on ARA guidelines[22](index=22&type=chunk) [Investor Relations](index=4&type=section&id=7.3%20Investor%20Relations) This section provides details for the earnings call and webcast, including dial-in information and website access for live and archived presentations, along with contact information for investor relations * **Herc Holdings' second quarter 2025 earnings webcast was held on July 29, 2025, at 8:30 a.m. U.S. Eastern Time**[18](index=18&type=chunk) * Interested parties can listen to the live conference call and view accompanying presentation slides by visiting the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com[19](index=19&type=chunk) * **A replay of the conference call will be available via webcast on the Company website, archived for 12 months**[19](index=19&type=chunk) * **Contact for investor relations is Leslie Hunziker, Senior Vice President, Investor Relations, Communications & Sustainability**[24](index=24&type=chunk)

Company Overview - Herc Holdings (HRI) is expected to report a year-over-year decline in earnings of 50.4%, with an estimated earnings per share (EPS) of $1.29 for the quarter ended June 2025 [3][12] - Revenue is projected to be $987.76 million, reflecting a 16.5% increase from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 56.34% over the last 30 days, indicating a significant reassessment by analysts [4] - The Most Accurate Estimate for Herc Holdings matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, but is more predictive for positive readings [9][10] - Herc Holdings currently holds a Zacks Rank of 5 (Strong Sell), complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, Herc Holdings was expected to post earnings of $2.51 per share but only achieved $1.30, resulting in a surprise of -48.21% [13] - The company has not beaten consensus EPS estimates in any of the last four quarters [14] Industry Context - In comparison, Ryder (R) is expected to post earnings of $3.11 per share for the same quarter, indicating a year-over-year increase of 3.7% [18] - Ryder's revenue is projected to be $3.17 billion, down 0.3% from the previous year, with an Earnings ESP of 0% and a Zacks Rank of 3 (Hold) [19][20]