Herc Holdings reports strong First Quarter 2024 and affirms 2024 full-year guidance

  • Record first quarter total revenues of $804 million, an increase of 9%
  • Net income decreased 3% to $65 million, or $2.29 per diluted share
  • Adjusted EBITDA of $339 million increased 10%; adjusted EBITDA margin increased to 42.2%
  • Rental pricing increased 5.1% year-over-year
  • Added 15 new locations through M&A and greenfield openings
  • Corporate credit rating upgraded by S&P Global to BB

Herc Holdings Inc. has reported financial results for the quarter ended March 31, 2024.

Larry Silber headshot

Larry Silber, president and chief executive officer

“We are off to a strong start in 2024, achieving record first-quarter revenue and adjusted EBITDA margin as we continue to capitalize on key growth markets, like semiconductors, data centers, renewables, and public infrastructure, while also investing in our network scale through greenfields and acquisitions, and elevating our higher-return specialty product lines,” said Larry Silber, president and chief executive officer of Herc Rentals. “Once again, our teams are delivering for customers both in the local markets and at the national level, capitalizing on our broad geographic coverage and strong demand for our products and services.

“We are making progress against each of our key 2024 priorities — enhancing our customer experience through our E3 business operating system, managing fleet efficiency and expenses with discipline, and scaling our network through greenfield locations and acquisitions in top 100 metropolitan markets,” said Silber. “Based on this strong performance and current line-of-sight to market trends, we are affirming our annual performance targets, excluding Cinelease, of 7-10% year-over-year equipment rental revenue growth and adjusted EBITDA of $1.55 billion to $1.60 billion for 2024.”

2024 First Quarter Financial Results

  • Total revenues increased 9% to $804 million compared to $740 million in the prior-year period. The year-over-year increase of $64 million primarily related to an increase in equipment rental revenue of $65 million, reflecting positive pricing of 5.1% and increased volume of 8.0%, partially offset by unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by $2 million during the period.
  • Dollar utilization was 39.7% in the first quarter, flat over the prior-year period.
  • Direct operating expenses were $307 million, or 42.7% of equipment rental revenue, compared to $281 million, or 43.0% in the prior-year period, reflecting better cost performance and fixed cost absorption on higher revenue despite increases related to additional headcount, facilities and maintenance expenses associated with strong rental activity and an expanding branch network.
  • Depreciation of rental equipment increased 5% to $160 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 12% to $29 million primarily due to amortization of acquisition intangible assets.
  • Selling, general and administrative expenses was $115 million, or 16.0% of equipment rental revenue, compared to $106 million, or 16.2% in the prior-year period due to continued focus on improving operating leverage while expanding revenues.
  • Interest expense increased to $61 million compared with $48 million in the prior-year period due to increased borrowings on the ABL Credit Facility primarily to fund acquisition growth and invest in rental equipment and higher interest rates on floating-rate debt.
  • Net income was $65 million compared to $67 million in the prior-year period. Adjusted net income decreased 3% to $67 million, or $2.36 per diluted share, compared to $69 million, or $2.35 per diluted share, in the prior-year period. The effective tax rate was 20% compared to 11% in the prior-year period.
  • Adjusted EBITDA increased 10% to $339 million compared to $308 million in the prior-year period and adjusted EBITDA margin was 42.2% compared to 41.6% in the prior-year period. Continued focus on improving operating leverage while expanding revenues resulted in the improvement in margin year-over-year.

Rental Fleet

Net rental equipment capital expenditures were as follows (in millions):

Three Months Ended March 31,



Rental equipment expenditures





Proceeds from disposal of rental equipment



Net rental equipment capital expenditures





  • As of March 31, 2024, the Company’s total fleet was approximately $6.4 billion at OEC.
  • Average fleet at OEC in the first quarter increased 10% compared to the prior-year period.
  • Average fleet age was 47 months as of March 31, 2024 and 2023.

Disciplined Capital Management

  • The Company completed 4 acquisitions with a total of 11 locations and opened 4 new greenfield locations during the quarter.
  • Net debt was $3.7 billion as of March 31, 2024, with net leverage of 2.5x which is unchanged from the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to $1.4 billion of liquidity as of March 31, 2024.
  • The Company declared its quarterly dividend of $0.665, an increase of $0.0325 or 5%, paid to shareholders of record as of February 21, 2024 on March 7, 2024.


The Company is affirming its full year 2024 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges presented below, excluding Cinelease studio entertainment and lighting and grip equipment rental business. The guidance range for the full year 2024 adjusted EBITDA reflects an increase of 6% to 9% compared to full year 2023 results, excluding Cinelease. The sale process for the Cinelease studio entertainment business is ongoing.

Equipment rental revenue growth:

7% to 10%

Adjusted EBITDA:

$1.55 billion to $1.60 billion

Net rental equipment capital expenditures after gross capex:

$500 million to $700 million, after gross capex of $750 million to $1 billion

As a provider in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.