Herc (NYSE:HRI) Announces Earnings Results

Herc (NYSE:HRI) released its earnings results on Tuesday. The transportation company reported $2.07 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.20, FiscalAI reports. The company had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.25 billion. Herc had a return on equity of 13.62% and a net margin of 0.02%.The business’s revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.58 EPS.

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

• Completed the industry?leading June 2025 acquisition of H&E and advanced integration work (80% of branch optimization done) with $125 million of cost synergies expected in 2026 and management saying synergies are tracking ahead of plan.
• 2026 financial guide calls for rental revenue growth of 13%–17%, Adjusted EBITDA of $2.0B–$2.1B (10%–16% growth), and free cash flow of $400M–$600M while targeting a return to 2–3x leverage by year?end 2027 from a current ~3.9x pro forma.
• Growth levers include a ~25% increase in standalone/co?located specialty branches, >50% growth in digital revenue, ~80% telematics penetration, and early specialty sales momentum that management expects to lift higher?margin mix over time.
• Fleet and capital plans call for roughly $950M gross CapEx at the midpoint (net CapEx ~ $650M) with materially lower disposals this year (management cited ~ $700M of disposals visibility) as the company shifts from right?sizing to aging the acquired fleet and improving utilization.
• Near?term headwinds include expected pro?forma dollar utilization decline in Q1, margin pressure from elevated used equipment sales and lower fixed cost absorption in some H&E?heavy local markets, and elevated leverage until revenue and cost synergies fully flow through.

Herc Trading Down 1.8%

NYSE:HRI opened at $147.38 on Thursday. The company’s 50 day moving average is $160.02 and its 200-day moving average is $139.88. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 4.28. Herc has a 12 month low of $96.18 and a 12 month high of $188.35. The firm has a market cap of $4.90 billion, a price-to-earnings ratio of -818.79, a P/E/G ratio of 1.39 and a beta of 1.77.

Herc Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th will be issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.9%. The ex-dividend date is Wednesday, February 18th. Herc’s dividend payout ratio (DPR) is -111.11%.

Wall Street Analyst Weigh In

HRI has been the subject of a number of research reports. Wells Fargo & Company lifted their target price on shares of Herc from $170.00 to $189.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Citigroup lifted their price objective on Herc from $170.00 to $195.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Barclays boosted their target price on Herc from $160.00 to $175.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. KeyCorp cut their price target on Herc from $200.00 to $190.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, JPMorgan Chase & Co. boosted their price target on Herc from $150.00 to $165.00 and gave the company a “neutral” rating in a research note on Wednesday, January 14th. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $179.71.

Institutional Investors Weigh In On Herc

A number of hedge funds have recently bought and sold shares of HRI. Northwestern Mutual Wealth Management Co. increased its stake in shares of Herc by 4.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,608 shares of the transportation company’s stock worth $239,000 after purchasing an additional 72 shares during the period. Wealthspire Advisors LLC lifted its holdings in shares of Herc by 2.8% during the fourth quarter. Wealthspire Advisors LLC now owns 2,717 shares of the transportation company’s stock worth $403,000 after buying an additional 75 shares during the last quarter. Captrust Financial Advisors boosted its position in shares of Herc by 5.1% in the second quarter. Captrust Financial Advisors now owns 2,051 shares of the transportation company’s stock valued at $270,000 after acquiring an additional 100 shares during the period. Smartleaf Asset Management LLC grew its stake in shares of Herc by 50.2% in the fourth quarter. Smartleaf Asset Management LLC now owns 332 shares of the transportation company’s stock worth $51,000 after acquiring an additional 111 shares during the last quarter. Finally, State of Wyoming increased its position in Herc by 33.2% during the fourth quarter. State of Wyoming now owns 509 shares of the transportation company’s stock worth $76,000 after acquiring an additional 127 shares during the period. 93.11% of the stock is currently owned by institutional investors.

Herc Company Profile

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.