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Herc Holdings(HRI) - 2025 Q1 - Quarterly Results
HRIHerc Holdings(HRI)2025-04-22 10:31

Revenue Performance - Total revenues increased 7% to 861millioncomparedto861 million compared to 804 million in the prior-year period[7] - Equipment rental revenue for Q1 2025 was 739million,anincreasefrom739 million, an increase from 719 million in Q1 2024, reflecting a growth of 2.8%[34] - The company expects equipment rental revenue growth of 4% to 6% for the full year 2025, targeting 1.575billionto1.575 billion to 1.650 billion[13] Profitability and Loss - Reported net loss of 18millionor18 million or 0.63 per share, primarily due to H&E acquisition transaction costs[6] - Net income for Q1 2025 was a loss of 18million,comparedtoaprofitof18 million, compared to a profit of 65 million in Q1 2024, representing a significant decline[31] - Adjusted earnings per diluted share for Q1 2025 were 1.30,downfrom1.30, down from 2.36 in Q1 2024, indicating a decrease of 45%[36] EBITDA and Margins - Adjusted EBITDA of 339millionwasflatyear−over−year,withanadjustedEBITDAmarginof39.4339 million was flat year-over-year, with an adjusted EBITDA margin of 39.4%[10] - Adjusted EBITDA for Q1 2025 remained stable at 339 million, the same as in Q1 2024, with an adjusted EBITDA margin of 39.4%, down from 42.2%[31] Cash Flow and Expenditures - Net cash provided by operating activities decreased to 171millioninQ12025from171 million in Q1 2025 from 240 million in Q1 2024, representing a decline of 28.75%[39] - Free cash flow for Q1 2025 was 49million,downfrom49 million, down from 92 million in Q1 2024, indicating a decrease of 46.74%[39] - Net rental equipment capital expenditures were 93million,downfrom93 million, down from 120 million in the prior-year period[8] Debt and Financial Position - Net debt was 4.0billionasofMarch31,2025,withnetleverageof2.5xunchangedfromtheprior−yearperiod[11]−Thedecreaseinnetdebt,excludingfinancingactivities,was4.0 billion as of March 31, 2025, with net leverage of 2.5x unchanged from the prior-year period[11] - The decrease in net debt, excluding financing activities, was 38 million in Q1 2025, contrasting with an increase of (56)millioninQ12024[39]AssetandLiabilityChanges−Totalassetsdecreasedto(56) million in Q1 2024[39] Asset and Liability Changes - Total assets decreased to 7,705 million in Q1 2025 from 7,877millioninQ42024,areductionof2.27,877 million in Q4 2024, a reduction of 2.2%[25] - Total liabilities decreased to 6,347 million in Q1 2025 from 6,481millioninQ42024,adeclineof2.16,481 million in Q4 2024, a decline of 2.1%[25] Dividend and Shareholder Returns - Declared a quarterly dividend of 0.70, an increase of 5%[11] Utilization and Operational Metrics - Dollar utilization decreased to 37.6% in the first quarter compared to 39.7% in the prior-year period[7] - The company incurred transaction-related costs of 74millioninQ12025,significantlyhigherthan74 million in Q1 2025, significantly higher than 3 million in Q1 2024[36] - Acquisitions, net of cash acquired, were (11)millioninQ12025,significantlylowerthan(11) million in Q1 2025, significantly lower than (148) million in Q1 2024, reflecting a decrease of 92.57%[39]