H&E Equipment Services(HEES) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for the first quarter of 2025 were $319.5 million, a decline of 14.0% compared to $371.4 million in the first quarter of 2024[7] - Net loss for the first quarter of 2025 was $6.2 million, or $0.17 per diluted share, compared to net income of $25.9 million, or $0.71 per diluted share, in the first quarter of 2024[15] - Adjusted EBITDA totaled $131.2 million, representing a decrease of 18.9% compared to $161.7 million in the first quarter of 2024, with adjusted EBITDA margins at 41.1%[16] - Gross profit for the first quarter was $123.6 million, down 25.0% from $164.9 million in the first quarter of 2024, with total gross margin declining to 38.7%[9] - Equipment rental revenues decreased by 7.2% to $274.0 million from $295.3 million in the same quarter of 2024[8] - Total revenues for Q1 2025 were $319.5 million, a decrease of 14% from $371.4 million in Q1 2024[30] - Equipment rentals revenue was $274.0 million, down 7% from $295.3 million year-over-year[30] - Gross profit decreased to $123.6 million, down 25% from $164.9 million in the same quarter last year[30] - Adjusted EBITDA for Q1 2025 was $131.2 million, down from $161.7 million in Q1 2024[35] - Rental revenues gross margin was 38.2%, down from 43.3% in Q1 2024[37] Expenses and Debt - Selling, General, and Administrative expenses were $111.6 million, a decrease of 2.4% compared to $114.3 million in the first quarter of 2024[11] - Total debt as of March 31, 2025, was $1.37 billion, a reduction from $1.45 billion a year earlier[32] - Cash balance decreased to $10.3 million from $16.4 million year-over-year[32] - The company incurred transaction expenses of $9.8 million in Q1 2025[30] Operational Metrics - Average rental rates, excluding acquisitions, declined by 2.0% compared to the first quarter of 2024[11] - Time utilization based on original equipment cost was 60.3% in the first quarter of 2025, down from 63.6% in the same quarter of 2024[9] - The original equipment cost of the rental fleet as of March 31, 2025, was approximately $2.9 billion, an increase of 3.8% compared to the previous year[10] Strategic Developments - The company plans to close the merger with Herc Rentals in mid-2025, which is expected to enhance operational resiliency[6] Market Risks - The company is facing risks related to supply chain disruptions and economic uncertainties impacting construction spending[26]