Herc (NYSE:HRI) Releases Quarterly Earnings Results, Beats Expectations By $0.42 EPS

Herc (NYSE:HRI) issued its earnings results on Tuesday. The transportation company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.21) by $0.42, FiscalAI reports. The business had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Herc had a return on equity of 13.21% and a net margin of 0.02%.The company’s quarterly revenue was up 32.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.30 EPS.

Here are the key takeaways from Herc’s conference call:

• The company says the H&E integration and branch optimization are complete, creating a ~30% larger branch network and allowing management to shift fully to leveraging scale for growth, efficiency and cross-selling.
• Management highlighted double-digit specialty revenue growth, 25% more specialty locations, record e-commerce revenue, and ongoing digital investments (ProControl), which they expect to drive higher‑margin growth as specialty locations mature in H2.
• On a pro forma basis Q1 rental revenue was down ~3% and adjusted EBITDA was down ~5%, and trailing leverage is ~3.96x; the company says deleveraging is a multi-quarter story with a target to return to 2–3x by year-end 2027.
• Management affirmed full‑year 2026 guidance, said cost synergies are running ahead (targeting an incremental $90M this year toward $125M total) and kept the $100–$120M revenue synergy target for 2026, expecting margin and free cash flow improvement in H2.

Herc Stock Down 3.1%

Shares of HRI stock traded down $4.01 on Thursday, reaching $127.59. 369,977 shares of the company’s stock traded hands, compared to its average volume of 613,480. The company has a market capitalization of $4.26 billion, a P/E ratio of -707.56, a price-to-earnings-growth ratio of 28.80 and a beta of 1.81. Herc has a 12-month low of $88.45 and a 12-month high of $188.35. The company has a debt-to-equity ratio of 4.17, a quick ratio of 1.31 and a current ratio of 1.31. The business’s 50 day moving average price is $115.17 and its two-hundred day moving average price is $136.54.

Herc Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 18th were issued a dividend of $0.70 per share. The ex-dividend date was Wednesday, February 18th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.2%. Herc’s payout ratio is currently -1,555.56%.

Analyst Ratings Changes

HRI has been the subject of a number of recent analyst reports. KeyCorp decreased their price target on Herc from $190.00 to $165.00 and set an “overweight” rating for the company in a research report on Monday, March 16th. Wells Fargo & Company boosted their price objective on Herc from $160.00 to $176.00 and gave the stock an “overweight” rating in a report on Wednesday. Barclays upped their price objective on shares of Herc from $160.00 to $175.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Robert W. Baird decreased their target price on shares of Herc from $200.00 to $198.00 and set an “outperform” rating for the company in a report on Wednesday, February 18th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Herc in a research report on Tuesday, April 21st. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $162.33.

Institutional Investors Weigh In On Herc

Institutional investors have recently bought and sold shares of the business. Hsbc Holdings PLC purchased a new stake in shares of Herc in the fourth quarter worth approximately $206,000. Empowered Funds LLC grew its position in Herc by 47.3% during the fourth quarter. Empowered Funds LLC now owns 5,527 shares of the transportation company’s stock valued at $820,000 after purchasing an additional 1,775 shares in the last quarter. Summit Securities Group LLC acquired a new position in Herc in the 4th quarter valued at approximately $179,000. Balyasny Asset Management L.P. increased its stake in Herc by 87.7% in the 4th quarter. Balyasny Asset Management L.P. now owns 51,588 shares of the transportation company’s stock valued at $7,655,000 after buying an additional 24,099 shares during the period. Finally, Freestone Grove Partners LP lifted its position in Herc by 667.9% in the 4th quarter. Freestone Grove Partners LP now owns 573,149 shares of the transportation company’s stock worth $85,044,000 after buying an additional 498,511 shares in the last quarter. 93.11% of the stock is currently owned by institutional investors and hedge funds.

About Herc

Herc Holdings Inc (NYSE: HRI) operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company’s fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.