Herc (NYSE:HRI) Announces Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Key Points

• Herc reported Q1 EPS of $0.21, beating estimates by $0.42, and revenue of $1.14B topped consensus while rising 32.3% year‑over‑year.
• The company said the H&E integration is complete, creating a ~30% larger branch network, reaffirmed 2026 guidance, and expects cost and revenue synergies to drive higher‑margin growth in H2.
• On the cautionary side, pro forma Q1 rental revenue was down ~3% and adjusted EBITDA down ~5%, with trailing leverage around 3.96x; management expects deleveraging to 2–3x by year‑end 2027.

Herc (NYSE:HRI - Get Free Report) released its earnings results on Tuesday. The transportation company reported $0.21 earnings per share for the quarter, beating the consensus estimate of ($0.21) by $0.42, FiscalAI reports. Herc had a return on equity of 13.21% and a net margin of 0.02%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the previous year, the business earned $1.30 earnings per share. Herc's quarterly revenue was up 32.3% compared to the same quarter last year.

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 Trading Up 7.8%

Shares of HRI opened at $134.33 on Wednesday. The firm has a market cap of $4.48 billion, a P/E ratio of -746.29, a price-to-earnings-growth ratio of 28.80 and a beta of 1.81. The company has a debt-to-equity ratio of 4.17, a current ratio of 1.31 and a quick ratio of 1.31. Herc has a 1 year low of $88.45 and a 1 year high of $188.35. The company has a 50 day simple moving average of $115.50 and a two-hundred day simple moving average of $136.57.

Herc Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 2.1%. The ex-dividend date was Wednesday, February 18th. Herc's dividend payout ratio is presently -1,555.56%.

Hedge Funds Weigh In On Herc

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Herc by 4.7% during 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 last quarter. Wealthspire Advisors LLC grew its holdings in shares of Herc by 2.8% in the fourth quarter. Wealthspire Advisors LLC now owns 2,717 shares of the transportation company's stock worth $403,000 after purchasing an additional 75 shares during the last quarter. Captrust Financial Advisors increased its stake in Herc by 5.1% in the 2nd quarter. Captrust Financial Advisors now owns 2,051 shares of the transportation company's stock worth $270,000 after buying an additional 100 shares during the period. Smartleaf Asset Management LLC increased its stake in Herc by 50.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 332 shares of the transportation company's stock worth $51,000 after buying an additional 111 shares during the period. Finally, State of Wyoming lifted its holdings in Herc by 33.2% during the 4th quarter. State of Wyoming now owns 509 shares of the transportation company's stock valued at $76,000 after buying an additional 127 shares in the last quarter. Institutional investors own 93.11% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Wells Fargo & Company lowered their price objective on Herc from $189.00 to $160.00 and set an "overweight" rating on the stock in a research report on Monday, April 13th. Weiss Ratings reissued a "sell (d+)" rating on shares of Herc in a report on Tuesday, April 21st. Barclays raised their target price on shares of Herc from $160.00 to $175.00 and gave the stock an "overweight" rating in a research note on Friday, January 23rd. Citigroup lowered their price target on shares of Herc from $165.00 to $135.00 and set a "buy" rating on the stock in a report on Monday, April 13th. Finally, KeyCorp dropped their price target on shares of Herc from $190.00 to $165.00 and set an "overweight" rating for the company in a research report on Monday, March 16th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $159.67.

Key Headlines Impacting Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Herc reported Q1 revenue of ~$1.14B, topping consensus and reflecting a 32% year‑over‑year increase; management said the H&E acquisition integration is complete and already delivering expanded specialty footprint and sales reach — a structural growth catalyst. Herc Holdings Reports First Quarter 2026 Results and Affirms 2026 Full Year Guidance
• Positive Sentiment: Company reaffirmed full‑year 2026 guidance on the release and emphasized capture of expected synergies from the H&E deal — that reduced investor uncertainty about integration risk. Herc Holdings Reports First Quarter 2026 Results and Affirms 2026 Full Year Guidance
• Positive Sentiment: Market reaction was strong — headlines and volume jumped after the print as investors rewarded the top‑line beat and integration progress. (This drove intraday buying pressure.) Herc Holdings surges following Q1 results beat
• Neutral Sentiment: Some outlets highlight a balanced earnings call that acknowledged growth opportunities but flagged integration and margin execution risks — useful color for modeling near‑term margins. Herc Holdings Earnings Call Balances Growth And Risk
• Neutral Sentiment: Full Q1 earnings call transcripts and slide deck are available for deeper read — good for investors who want line‑by‑line details on rental demand, pricing and capex plans. Herc Holdings Inc. (HRI) Q1 2026 Earnings Call Transcript
• Negative Sentiment: EPS was mixed: the company reported $0.21/share which beat some narrower estimates (e.g., Zacks) but missed certain Street forecasts (~$0.30), and EPS is well below last year’s $1.30 — signaling margin pressure and acquisition‑related costs; balance sheet leverage remains elevated, which is a watch item. Herc Q1 EPS and metrics (MarketBeat)

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.