Herc Rentals posted $951 million in total revenue in the fourth quarter of 2024, compared to $831 million in the fourth quarter of 2023, a 14.4-percent increase. Equipment rental revenue was $839 million compared to $748 million in Q423, an 11-percent uptick. Sales of rental equipment was $96 million in the fourth quarter compared to $68 million a year ago, a 41.1-percent jump.
For the full year 2024, total revenue was $3.568 billion compared to $3.282 billion in 2023, an 8.7-percent increase. Equipment rental revenue topped $3 billion for the first time at $3.189 billion compared to $2.870 billion a year ago, an 11.1-percent leap. For the full year, sales of rental equipment declined from $346 million in 2023 to $311 in 2024, a 10.1-percent decline.
Rental rates increased 2.1 percent for the full year.
“In 2024, despite a more challenging market than anticipated, we delivered another year of record results, significantly outperforming industry revenue by leveraging the strength of tenured customer relationships, the value derived from strategic capital allocation priorities and our diversified position across products, geographies and end markets,” said president and CEO Larry Silber. “While the higher-for-longer interest rate environment continues to pressure local market growth, we captured an outsized share of national account mega projects last year. We also completed nine acquisitions, supporting market consolidation and positioning our company for long-term growth opportunities and greater efficiencies of scale. Strategic pricing, agile fleet management, and enterprise-wide cost controls helped to sustain margins in this dynamic environment.”
Lack of clarity looking at 2025
Silber expressed some uncertainty regarding Herc’s prospects for 2025. “The 2025 operating landscape is still lacking good clarity,” Silber noted. “We are monitoring industry opportunities and believe the diversity of our business model, asset optimization and prudent investments will allow us to navigate local market pressure again this year, while capitalizing on incremental new mega project starts. Long term, we expect new government policies and spending initiatives will expand opportunities for Herc and our industry.”
Dollar utilization decreased in the fourth quarter to 40.6 percent compared to 40.9 percent in the fourth quarter of 2023. The company posted a net loss of $46 million in the fourth quarter of 2024, compared to net income of $91 million in the fourth quarter of 2023. The net loss in the current period was the result of the loss on Cinelease assets held for sale. Adjusted net income increased 11 percent to $102 million, or $3.58 per diluted share, compared to $92 million, or $3.24 per diluted share in the prior-year period.
Adjusted EBITDA increased 15 percent to $438 million compared to $382 million in the year-ago period and adjusted EBITDA margin was 46.1 percent compared to 46.0 percent a year ago. For the full year, net income was $211 million compared to $347 million in 2023, impacted for the full year by the loss on Cinealease assets held for sale.
As of December 31, 2024, the company’s total fleet was approximately $7 billion at OEC, with average fleet age of 46 percent compared to 45 percent the previous year.
Headquartered in Bonita Springs, Fla., Herc Rentals is No. 3 on the RER 100.
