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]

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its chart ...

Herc Holdings Reports First Half 2025 Results and Updates 2025 Full Year Guidance Second Quarter 2025 Highlights Bonita Springs, Fla., July 29, 2025 -- Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2025. "The second quarter marked an important milestone for our company. On June 2nd, we completed the transaction to bring Herc Rentals and H&E Equipment Services together. This acquisition, the largest in the industry, will acce ...

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]

Core Insights - The report provides a comprehensive analysis of the North American Temporary Heating Market, focusing on market size, growth rates, and revenue forecasts from 2024 to 2031 for the United States and Canada [1][4]. Market Overview - The study includes market share splits by equipment type (steam, electric, ground thaw, indirect-fired, direct-fired, flameless, and hydronic surface heaters), country (United States and Canada), and end-user groups (construction, industrial, mining, oil & gas, emergency, events, and others) [2]. - The base year for the study is 2024, with projections extending to 2031 [4]. Market Segmentation - The report details segmentation by type of equipment, end-user, and application, providing insights into the distribution of market shares by revenue for rental providers [2][7]. - It includes analysis by output capacity, categorizing heaters into ranges such as less than 300k BTU/hr, 350k-750k BTU/hr, 750k-1 MBTU/hr, 1-2 MBTU/hr, and above 2 MBTU/hr [9]. Revenue Insights - The report presents revenue-based market share data for 2024, highlighting the end-user market share across various sectors including Construction, Oil & Gas, Industrial, Emergency, Events, Mining, and Others [9]. - It also provides insights into North American Temporary Heating revenues for the years 2022 and 2029 [11]. Market Dynamics - The report identifies key market drivers and restraints, offering a detailed analysis of overall market trends [8][9]. - It includes profiles of major companies in the market, such as Aggreko plc, CAT Dealership Network, Herc Rentals Inc., Resolute Industrial LLC, Sunbelt Rentals Inc., and United Rentals Inc. [9].

Company Overview - Herc Holdings (NYSE: HRI) is a large equipment rental company with a diversified fleet and customer base serving U.S. and international customers across construction, industrial, and infrastructure markets [1] Growth Outlook - The company's growth outlook is supported by continued strength in the construction and industrial sectors [1]

Core Viewpoint - Herc Holdings Inc. and H&E Equipment Services, Inc. have completed a tender offer for H&E Shares as part of a merger agreement, with the acquisition expected to close on June 2, 2025 [1][3]. Group 1: Tender Offer Details - The tender offer expired on May 29, 2025, with 25,369,090 H&E Shares validly tendered, representing approximately 69.33% of the outstanding shares [2]. - All conditions to the tender offer have been satisfied or waived, and the tendered shares will be accepted for payment [2]. Group 2: Merger Completion - The acquisition is anticipated to close on June 2, 2025, at which point H&E will become a wholly-owned subsidiary of Herc [3][4]. - Following the merger, H&E Shares will cease trading on the Nasdaq Stock Market [4]. Group 3: Company Profiles - Herc Holdings Inc. operates through Herc Rentals Inc. and has 453 locations across North America, with total revenues of approximately $3.6 billion in 2024 [5]. - H&E Equipment Services, Inc. is one of the largest rental equipment companies in the U.S., serving diverse end markets across various high-growth geographies [6].

Core Insights - Investors in Herc Holdings Inc. (HRI) should monitor stock movements due to high implied volatility in options, particularly the Jun 20, 2025 $90.00 Call option [1] - High implied volatility indicates market expectations of significant price movement, potentially due to an upcoming event [2] Company Analysis - Herc Holdings is currently rated as Zacks Rank 3 (Hold) in the Transportation - Equipment and Leasing Industry, which is in the top 30% of Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter from $2.98 to $3.11 per share, with no downward revisions [3] Trading Strategy - The high implied volatility suggests a potential trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]