Herc Rentals’ Total Revenue Jumps 7.1 Percent in First Quarter of 2025
Herc Rentals reported $861 million in total revenue in the first quarter of 2025, compared to $804 million in the first quarter of 2024, a 7.1-percent increase. Equipment rental revenue rose slightly from $719 million last year to $739 million this year, a 2.8-percent increase. Sales of rental equipment took a big jump from $69 million to $105 million, a 52.2-percent boost. Sales of new equipment, parts and supplies increased 22 percent from $9 million to $11 million.
Dollar utilization decreased to 37.6 percent from 39.7 percent, a 5.9-percent drop, reflecting slower marketplace demand. Net loss was $18 million compared to net income of $65 million in the same period last year. Adjusted net income decreased 45 percent to $37 million. Adjusted EBITDA remained flat at $339 million, and adjusted EBITDA margin was 39.4 percent compared to 42.2 percent in the year-ago period.
“As expected, the 2025 operating landscape continues to be a tale of two disparate economic trends,” said Larry Silber, president and CEO. “Our national account business is growing, fueled by federal and private funding for large construction projects like data centers, manufacturing onshoring and LNG facilities. At the same time, while facility maintenance, municipal, and infrastructure projects are supporting the local markets, other more interest-rate sensitive projects continue to be on hold, restricting overall local account growth. Against this uneven backdrop, Herc’s diversified business model helps drive resiliency.
“With growth in mega project activity and incremental revenue benefits from last year’s acquisitions, we delivered financial results that were in line with our expectations for the seasonally low first quarter. And we remain on pace to outperform the overall equipment rental market again this year as Team Herc continues to identify opportunities to deliver value for our customers, while managing our fleet and capital strategically and with discipline.
Silber referred to the H&E acquisition, reiterating that the closing date is targeted for mid-year.
“Our operators and salesforce remain focused on running the day-to-day business, and our integration team is actively preparing for the migration of Herc systems and processes,” Silber added. “We are excited to bring together two strong cultures that focus on growth and share priorities for customer service and safety.”
Silber affirmed Herc’s expectation the equipment rental revenue growth will be between 4 and 6 percent in 2025, with adjusted EBITDA between $1.575 billion and $1.650 billion. He added that Herc opened three cold starts in the first quarter.
Herc Rentals, headquartered in Bonita Springs, Fla., is No 3 on the RER 100.
