{"success":true,"data":{"pressRelease":{"id":"180692","rtpr_id":"nBw5tqrc3a-20261027","ticker":"HRI","exchange":"NYSE","all_tickers":["HRI"],"title":"Herc Holdings Reports Third Quarter 2026 Results and Increases 2026 Full Year Guidance","author":"Business Wire","published_at":"2026-10-27T10:30:00.314Z","article_body":"Herc Holdings Reports Third Quarter 2026 Results and Increases 2026 Full Year\nGuidance\n\nThird Quarter 2026 Highlights\n\n\n * Record equipment rental revenue of $1,254 million increased 12%\n\n * Record total revenues of $1,364 million increased 5%\n\n * Net income of $104 million, or $3.10 per diluted share, and adjusted net\nincome of $131 million, or $3.91 per diluted share\n\n * Record adjusted EBITDA of $603 million increased 9% with adjusted EBITDA\nmargin up 190 bps\n\nHerc Holdings Inc. (NYSE: HRI) (\"Herc Holdings\" or the \"Company\") today\nreported financial results for the quarter ended September 30, 2026.\n\n“Our team delivered an exceptional third quarter, leveraging our scale,\nbroad equipment offering, deep customer relationships and superior project\nexecution to capitalize on accelerating customer demand,” said Larry Silber,\nchief executive officer. “Equipment rental revenue increased 12% on an\naverage OEC fleet that increased less than 2%, resulting in a 360 basis point\nimprovement in dollar utilization. Expert fleet management drove high time\nutilization and disciplined fleet deployment, while pricing improvement and a\nhigher specialty mix further enhanced fleet efficiency.\n\n“The strong performance was led by robust mega-project volume and\ndouble-digit expansion in our specialty solutions business,” said Silber.\n“Revenue synergies from H&E were an increasing contributor in the\nquarter, consistent with the second-half weighting we previously outlined, as\nnew specialty branches continued to ramp and we advanced cross-selling,\nbroader fleet access and national account penetration. Local-market demand\nremained stable.\n\n“Growth in our large-project pipeline continues to exceed our expectations,\nwith expanding opportunities across data centers, infrastructure,\nmanufacturing facilities, and energy projects. As a result, we are raising our\nfull-year 2026 revenue, adjusted EBITDA and capex guidance for the second time\nthis year,” Silber added. “Our ability to serve these complex projects and\ndeliver for our customers reflects our increased scale and ongoing\ntechnological innovation, as well as the hard work, expertise and dedication\nof Team Herc. I want to thank all of our employees for their continued\ncommitment to safely serving our customers and driving our success.”\n\n2026 Third Quarter Financial Results\n\n\n * Total revenues increased 5% to $1,364 million compared to $1,304 million in\nthe prior-year period. The increase was driven by a 12% increase in equipment\nrental revenue resulting from a slightly larger average fleet size, an\nincrease in volume on mega projects and acquisition revenue synergies. Sales\nof rental equipment decreased by $66 million as disposal volume was elevated\nin the prior year to optimize the fleet after the H&E acquisition.\n\n * Dollar utilization was 43.5% in the third quarter up from 39.9% in the\nprior-year period, due to the increase in fleet efficiency and a favorable\nshift in mix to higher-return fleet on rent year-over-year.\n\n * Direct operating expenses were $532 million, or 42.4% of equipment rental\nrevenue, compared to $467 million, or 41.6%, in the prior-year period.\nOperating expenses as a percent of equipment rental revenue were elevated\nduring the period primarily related to increased transportation and fuel\nexpenses as a result of continued macroeconomic headwinds. Higher field\nincentive compensation, driven by outperformance, especially in fleet\nefficiency, also contributed to the increase during the quarter.\n\n * Depreciation of rental equipment increased 4% to $255 million due to higher\nyear-over-year average fleet size. Non-rental depreciation and amortization\nincreased 6% to $74 million primarily due to amortization of acquisition\nintangibles, particularly the H&E customer relationship intangible asset,\nand an increase in non-rental asset depreciation resulting from the growth of\nthe business.\n\n * Selling, general and administrative expenses were $178 million, or 14.2% of\nequipment rental revenue, compared to $166 million, or 14.8%, in the\nprior-year period. The decrease as a percent of equipment rental revenue is\ndue to continued focus on improving operating leverage, including acquisition\ncost synergies, while expanding revenues.\n\n * Interest expense was $126 million compared with $134 million in the prior-year\nperiod, reflecting lower average outstanding borrowings and lower interest\nrates on floating-rate debt.\n\n * Net income was $104 million, or $3.10 per diluted share, compared to $30\nmillion, or $0.90 per diluted share, in the prior-year period. Adjusted net\nincome was $131 million, or $3.91 per diluted share, compared to $74 million,\nor $2.22 per diluted share, in the prior-year period.\n\n * Adjusted EBITDA increased 9% to $603 million compared to $551 million in the\nprior-year period. Adjusted EBITDA margin was 44.2% compared to 42.3% in the\nprior year period reflecting higher equipment rental revenue, improved\noperating leverage, partially offset by higher delivery and fuel costs.\n\nNine Months 2026 Financial Results\n\n\n * Total revenues increased 17% to $3,707 million compared to $3,167 million in\nthe prior-year period. This year-over-year increase was driven by a 21%\nincrease in equipment rental revenue resulting from the larger fleet size\nafter the H&E acquisition, an increase in volume on mega projects and\nrevenue synergies. Sales of rental equipment decreased by $29 million during\nthe period as disposal volume was elevated in the prior year to optimize the\nfleet after the H&E acquisition.\n\n * Dollar utilization was 39.8%, up from 38.8% in the prior-year period due to\nthe increase in fleet efficiency and the favorable shift in mix to\nhigher-return fleet on rent year-over-year.\n\n * Direct operating expenses were $1,476 million, or 44.6% of equipment rental\nrevenue compared to $1,173 million, or 43.0%, in the prior-year period.\nOperating expenses as a percent of equipment rental revenue were elevated\nduring the period primarily related to the impact of the H&E acquisition\nincluding new specialty locations from branch optimization as well as\ngreenfields, all of which take more time to mature. Transportation and fuel\ncosts were also significantly higher year-over-year.\n\n * Depreciation of rental equipment increased 21% to $739 million due to higher\nyear-over-year average fleet size primarily as a result of the H&E\nacquisition. Non-rental depreciation and amortization increased 50% to $222\nmillion primarily due to amortization of acquisition intangibles, particularly\nthe H&E customer relationship intangible asset, and an increase in\nnon-rental asset depreciation resulting from the growth of the business.\n\n * Selling, general and administrative expenses were $479 million, or 14.5% of\nequipment rental revenue, compared to $411 million, or 15.0%, in the\nprior-year period. The decrease as a percent of equipment rental revenue\nprimarily was related to continued focus on improving operating leverage,\nincluding acquisition cost synergies, while expanding revenues.\n\n * Interest expense was $380 million compared with $282 million in the prior-year\nperiod, reflecting the new debt issued in June 2025 to fund the H&E\nacquisition, partially offset by lower average interest rates on floating-rate\ndebt year-over-year.\n\n * Net income was $99 million, or $2.96 per diluted share, compared to $23\nmillion net loss, or $0.75 loss per diluted share, in the prior-year period.\nAdjusted net income was $186 million, or $5.55 per diluted share, compared to\n$170 million, or $5.54 per diluted share, in the prior-year period.\n\n * Adjusted EBITDA increased 18% to $1,538 million compared to $1,299 million in\nthe prior-year period. Adjusted EBITDA margin was 41.5% compared to 41.0% in\nthe prior year period primarily reflecting revenue growth and improved\noperating leverage, partially offset by higher direct operating expenses,\nincluding delivery and fuel costs.\n\nRental Fleet\n\n\n * Net rental equipment capital expenditures were as follows (in millions):\n   Nine Months Ended September 30, \n     2026       2025   \n Rental equipment expenditures $ 1,056     $ 835   \n Proceeds from disposal of rental equipment   (319 )     (306 ) \n Net rental equipment capital expenditures $ 737     $ 529   \n\n\n\n * As of September 30, 2026, the Company's total fleet was approximately $10.0\nbillion at OEC.\n\n * Average fleet at OEC in the third quarter increased 1.7% compared to the\nprior-year period.\n\n * Average fleet age was 46 and 45 months as of September 30, 2026, and 2025,\nrespectively.\n\nDisciplined Capital Management\n\n\n * The Company opened 2 previously planned greenfield locations in the third\nquarter.\n\n * Net debt was $8.0 billion as of September 30, 2026, with net leverage of 3.90x\ncompared to $8.2 billion and 3.84x(1) in the same prior-year period. Cash and\ncash equivalents and unused commitments under the ABL Credit Facility\ncontributed to approximately $2.1 billion of liquidity as of September 30,\n2026.\n\n * The Company declared its quarterly dividend of $0.70 and paid to shareholders\nof record as of September 2, 2026, on September 16, 2026.\n (1) Net leverage is calculated using pro forma trailing twelve month adjusted \n EBITDA including the standalone, pre-acquisition results of H&E. \n\n\nUpdating 2026 Outlook\n\nThe Company is raising its full year 2026 equipment rental revenue, adjusted\nEBITDA, gross and net rental capital expenditures guidance ranges.\n   Previous Guidance   Updated 2026 Guidance \n Equipment rental revenue: $4.375 billion to $4.475 billion   $4.475 billion to $4.550 billion \n Adjusted EBITDA: $2.05 billion to $2.125 billion   $2.10 billion to $2.15 billion \n Net rental equipment capital expenditures: $850 million to $950 million   $1.0 billion to $1.1 billion \n Gross capex: $1.25 billion to $1.40 billion   $1.45 billion to $1.60 billion \n\n\nAs a leader in an industry where scale matters, the Company expects to\ncontinue to gain share by capturing an outsized portion of the forecasted\nhigher construction spending in 2026, strengthening its fleet through targeted\ninvestment and ongoing gains in fleet efficiency, capitalizing on\nacquisition-related branch optimization and greenfield openings, and\ncross-selling a diversified product portfolio.\n\nEarnings Call and Webcast Information\n\nHerc Holdings' third quarter 2026 earnings webcast will be held today at 8:30\na.m. U.S. Eastern Time. Interested U.S. parties may call +1-833-461-5787 and\ninternational participants should call the country specific dial in numbers\nlisted at https://help.events.q4inc.com/eahc/international-dial-in-numbers\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fhelp.events.q4inc.com%2Feahc%2Finternational-dial-in-numbers&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=https%3A%2F%2Fhelp.events.q4inc.com%2Feahc%2Finternational-dial-in-numbers&index=1&md5=44be7c3950036f3902979810abc67a5b)\n, using the meeting ID: 383 873 427. Please dial in at least 10 minutes before\nthe call start time to ensure that you are connected to the call and to\nregister your name and company.\n\nThose who wish to listen to the live conference call and view the accompanying\npresentation slides should visit the Events and Presentations tab of the\nInvestor Relations section of the Company's website at IR.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2FIR.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=IR.HercRentals.com&index=2&md5=6eef3d93c70156264329a6344db4fe8e)\n. The press release and presentation slides for the call will be posted to\nthis section of the website prior to the call. A replay of the conference call\nwill be available via webcast on the Company website at IR.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2FIR.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=IR.HercRentals.com&index=3&md5=bc548a1fb3d12684c2a9af4c77daeacd)\n, where it will be archived for 12 months after the call.\n\nAbout Herc Holdings Inc.\n\nFounded in 1965, Herc Holdings Inc., which operates through its Herc Rentals\nInc. subsidiary, is a full-line rental supplier with 615 locations across\nNorth America and 2025 total revenues were approximately $4.4 billion. We\noffer products, services and technologies aimed at helping customers work more\nefficiently, effectively and safely. Our classic fleet includes aerial,\nearthmoving, material handling, trucks and trailers, air compressors, and\ncompaction. Our Herc Rentals ProSolutions® offering includes\nindustry-specific, solutions-based services in tandem with power generation,\nclimate control, remediation and restoration, pumps, and trench shoring\nequipment as well as our Herc Rentals ProContractor® professional grade\ntools. Our ProControl by Herc Rentals™ digital platform combines a seamless\ne-commerce experience with integrated project and fleet management tools,\nleveraging telematics and real-time analytics to help customers optimize\nproductivity across their operations. We employ approximately 10,200\nemployees, who equip our customers and communities to build a brighter future.\nLearn more at www.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=www.HercRentals.com&index=4&md5=2996bf00a50654478571ae0e126e2cec)\nand follow us on Instagram, Facebook and LinkedIn.\n\nAll references to “Herc Holdings” or the “Company” in this press\nrelease refer to Herc Holdings Inc. and its subsidiaries, unless otherwise\nindicated.\n\nCertain Additional Information\n\nIn this release we refer to the following operating measures:\n\n\n * Dollar utilization: calculated by dividing rental revenue (excluding re-rent,\ndelivery, pick-up and other ancillary revenue) by the average OEC of the\nequipment fleet for the relevant time period, based on the guidelines of the\nAmerican Rental Association (ARA).\n\n * OEC: original equipment cost based on the guidelines of the ARA, which is\ncalculated as the cost of the asset at the time it was first purchased plus\nadditional capitalized refurbishment costs (with the basis of refurbished\nassets reset at the refurbishment date).\n\nForward-Looking Statements\n\nThis press release includes forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act, as amended, and the Private\nSecurities Litigation Reform Act of 1995. Forward-looking statements are\ngenerally identified by the words \"estimates,\" \"expects,\" \"anticipates,\"\n\"projects,\" \"plans,\" \"intends,\" \"believes,\" \"forecasts,\" \"looks,\" and future\nor conditional verbs, such as \"will,\" \"should,\" \"could\" or \"may,\" as well as\nvariations of such words or similar expressions. All forward-looking\nstatements are based upon our current expectations and various assumptions and\nthere can be no assurance that our current expectations will be achieved. You\nshould not place undue reliance on the forward-looking statements. They are\nsubject to future events, risks and uncertainties - many of which are beyond\nour control - as well as potentially inaccurate assumptions, that could cause\nactual results to differ materially from those in the forward-looking\nstatements. Factors that could cause actual results to differ materially from\nthose projected include, but are not limited to, the following: (1) the\ncyclical nature of our industry and our dependence on the levels of capital\ninvestment and maintenance expenditures by our customers; (2) the\ncompetitiveness of our industry, including the potential downward pricing\npressures or the inability to increase prices; (3) our dependence on\nrelationships with key suppliers; (4) our heavy reliance on communication\nnetworks, centralized information technology systems and third party\ntechnology and services and our ability to maintain, upgrade or replace our\ninformation technology systems; (5) our ability to respond adequately to\nchanges in technology and customer demands; (6) our ability to attract and\nretain key management, sales and trades talent; (7) our rental fleet is\nsubject to residual value risk upon disposition; (8) the impact of climate\nchange and the legal and regulatory responses to such change; (9) our ability\nto execute our strategy to grow through strategic transactions; (10) our\nsignificant indebtedness; and (11) our ability to realize all the anticipated\nbenefits of the acquisition of H&E Equipment Services, Inc. Further\ninformation on the risks that may affect our business is included in filings\nwe make with the Securities and Exchange Commission from time to time,\nincluding our most recent annual report on Form 10-K, subsequent quarterly\nreports on Form 10-Q, and in our other SEC filings. We undertake no obligation\nto update or revise forward-looking statements that have been made to reflect\nevents or circumstances that arise after the date made or to reflect the\noccurrence of unanticipated events.\n\nInformation Regarding Non-GAAP Financial Measures\n\nIn addition to results calculated according to accounting principles generally\naccepted in the United States (“GAAP”), the Company has provided certain\ninformation in this release that is not calculated according to GAAP\n(“non-GAAP”), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin,\nadjusted net income, adjusted earnings per diluted common share and free cash\nflow. Management uses these non-GAAP measures to evaluate operating\nperformance and period-over-period performance of our core business without\nregard to potential distortions, and believes that investors will likewise\nfind these non-GAAP measures useful in evaluating the Company’s performance.\nThese measures are frequently used by security analysts, institutional\ninvestors and other interested parties in the evaluation of companies in our\nindustry. Non-GAAP measures should not be considered in isolation or as a\nsubstitute for our reported results prepared in accordance with GAAP and, as\ncalculated, may not be comparable to similarly titled measures of other\ncompanies. For the definitions of these terms, further information about\nmanagement’s use of these measures as well as a reconciliation of these\nnon-GAAP measures to the most comparable GAAP financial measures, please see\nthe supplemental schedules that accompany this release.\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n Unaudited \n (In millions, except per share data) \n \n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Revenues:               \n Equipment rental $ 1,254     $ 1,122     $ 3,307     $ 2,731   \n Sales of rental equipment   85       151       333       362   \n Sales of new equipment, parts and supplies   13       18       38       46   \n Service and other revenue   12       13       29       28   \n Total revenues   1,364       1,304       3,707       3,167   \n Expenses:               \n Direct operating   532       467       1,476       1,173   \n Depreciation of rental equipment   255       246       739       613   \n Cost of sales of rental equipment   68       134       263       296   \n Cost of sales of new equipment, parts and supplies   9       12       26       30   \n Selling, general and administrative   178       166       479       411   \n Transaction expenses   1       38       9       185   \n Non-rental depreciation and amortization   74       70       222       148   \n Interest expense, net   126       134       380       282   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Other expense (income), net   1       —       (8 )     (3 ) \n Total expenses   1,244       1,266       3,586       3,183   \n Income (loss) before income taxes   120       38       121       (16 ) \n Income tax provision   (16 )     (8 )     (22 )     (7 ) \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n                 \n Weighted average shares outstanding:               \n Basic   33.4       33.2       33.4       30.6   \n Diluted   33.5       33.3       33.5       30.6   \n Income (loss) per share:               \n Basic $ 3.11     $ 0.90     $ 2.96     $ (0.75 ) \n Diluted $ 3.10     $ 0.90     $ 2.96     $ (0.75 ) \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (In millions) \n   \n   September 30, 2026   December 31, 2025 \n ASSETS Unaudited     \n Cash and cash equivalents $ 66     $ 52   \n Receivables, net of allowances   929     769 \n Prepaid expenses   62       72   \n Other current assets   52       63   \n Total current assets   1,109       956   \n Rental equipment, net   6,190       5,880   \n Property and equipment, net   855       868   \n Right-of-use lease assets   1,444       1,489   \n Intangible assets, net   1,559       1,665   \n Goodwill   2,859       2,873   \n Other long-term assets   41       45   \n Total assets $ 14,057     $ 13,776   \n         \n LIABILITIES AND EQUITY       \n Current maturities of long-term debt and financing obligations $ 32     $ 32   \n Current maturities of operating lease liabilities   59       56   \n Accounts payable   556       337   \n Accrued liabilities   384       305   \n Total current liabilities   1,031       730   \n Long-term debt, net   8,004       8,021   \n Financing obligations, net   92       95   \n Operating lease liabilities   1,443       1,479   \n Deferred tax liabilities   1,449       1,446   \n Other long-term liabilities   54       57   \n Total liabilities   12,073       11,828   \n Total equity   1,984       1,948   \n Total liabilities and equity $ 14,057     $ 13,776 \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n Unaudited \n (In millions) \n   \n   Nine Months Ended September 30, \n     2026       2025   \n Cash flows from operating activities:       \n Net income (loss) $ 99     $ (23 ) \n Adjustments to reconcile net income (loss) to net cash provided by operating       \n activities: \n Depreciation of rental equipment   739       613   \n Depreciation of property and equipment   97       77   \n Amortization of intangible assets   125       71   \n Amortization of deferred debt and financing obligations costs   9       6   \n Stock-based compensation charges   22       28   \n Provision for receivables allowances   79       58   \n Loss on assets held for sale   —       48   \n Deferred taxes   4       2   \n Gain on sale of rental equipment   (70 )     (66 ) \n Other   13       11   \n Changes in assets and liabilities, net of effects from acquisitions:       \n Receivables   (260 )     (59 ) \n Other assets   11       (19 ) \n Accounts payable   (22 )     10   \n Accrued liabilities and other long-term liabilities   105       13   \n Net cash provided by operating activities   951       770   \n Cash flows from investing activities:       \n Rental equipment expenditures   (1,056 )     (835 ) \n Proceeds from disposal of rental equipment   319       306   \n Non-rental capital expenditures   (107 )     (123 ) \n Proceeds from disposal of property and equipment   26       15   \n Acquisitions, net of cash acquired   —       (4,256 ) \n Proceeds from disposal of business, net   —       99   \n Net cash used in investing activities   (818 )     (4,794 ) \n Cash flows from financing activities:       \n Proceeds from issuance of long-term debt   —       3,467   \n Repayments of long-term debt   (6 )     —   \n Proceeds from revolving lines of credit and securitization   1,688       3,928   \n Repayments on revolving lines of credit and securitization   (1,709 )     (3,299 ) \n Principal payments under finance lease and financing obligations   (18 )     (16 ) \n Dividends paid   (71 )     (64 ) \n Other financing activities, net   (3 )     (14 ) \n Net cash provided by (used in) financing activities   (119 )     4,002   \n Effect of foreign exchange rate changes on cash and cash equivalents   —       —   \n Net change in cash and cash equivalents during the period   14       (22 ) \n Cash and cash equivalents at beginning of period   52       83   \n Cash and cash equivalents at end of period $ 66     $ 61   \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n EBITDA AND ADJUSTED EBITDA RECONCILIATIONS \n Unaudited \n (In millions) \n\n\nEBITDA and adjusted EBITDA–EBITDA represents the sum of net income (loss),\nprovision (benefit) for income taxes, interest expense, net, depreciation of\nrental equipment and non-rental depreciation and amortization. Adjusted EBITDA\nrepresents EBITDA plus the sum of transaction expenses, restructuring and\ntransformation initiative costs, spin-off costs, non-cash stock-based\ncompensation charges, loss on extinguishment of debt (which is included in\ninterest expense, net), impairment charges, gain (loss) on the disposal of a\nbusiness, impact of the fair value mark-up of acquired fleet, impact of the\nstudio entertainment business and certain other items. EBITDA and adjusted\nEBITDA do not purport to be alternatives to net income as an indicator of\noperating performance. Additionally, neither measure purports to be an\nalternative to cash flows from operating activities as a measure of liquidity,\nas they do not consider certain cash requirements such as interest payments\nand tax payments.\n\nAdjusted EBITDA Margin–Adjusted EBITDA Margin, calculated by dividing\nAdjusted EBITDA by Total Revenues, is a commonly used profitability ratio.\n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n Income tax provision   16       8       22       7   \n Interest expense, net   126       134       380       282   \n Depreciation of rental equipment   255       246       739       613   \n Non-rental depreciation and amortization   74       70       222       148   \n EBITDA   575       488       1,462       1,027   \n Non-cash stock-based compensation charges   14       16       22       28   \n Transaction expenses   1       38       9       185   \n Restructuring and transformation initiative costs((1))   2       1       7       1   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Impact of the fair value mark-up of acquired fleet((2))   10       7       37       11   \n Other((3))   1       2       1       (1 ) \n Adjusted EBITDA $ 603     $ 551     $ 1,538     $ 1,299   \n                 \n Total revenues $ 1,364     $ 1,304     $ 3,707     $ 3,167   \n Adjusted EBITDA $ 603     $ 551     $ 1,538     $ 1,299   \n Adjusted EBITDA margin   44.2 %     42.3 %     41.5 %     41.0 % \n (1) Restructuring and transformation initiative costs primarily consist of \n employee severance and other restructuring related costs, together with \n incremental non-recurring costs associated with strategic business \n transformation initiative designed to improve operational efficiency and \n profitability. \n (2) Reflects additional costs recorded in cost of sales of rental equipment \n associated with the fair value mark-up of rental equipment acquired in major \n acquisitions and subsequently sold. \n (3) Other includes impairment charges and the pre-divestiture impact of the \n studio entertainment business. \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE \n Unaudited \n (In millions, except per share data) \n\n\nAdjusted Net Income and Adjusted Earnings per Diluted Share–Adjusted Net\nIncome represents the sum of net income (loss), transaction expenses,\nrestructuring and transformation initiative costs, spin-off costs, loss on\nextinguishment of debt, impairment charges, gain (loss) on the disposal of a\nbusiness, merger related intangible asset amortization, impact on depreciation\nof acquired fleet, impact of the fair value mark-up of acquired fleet, income\n(loss) of the studio entertainment business, and certain other items. Adjusted\nEarnings per Diluted Share represents Adjusted Net Income divided by weighted\naverage diluted shares outstanding. Adjusted Net Income and Adjusted Earnings\nper Diluted Share are important measures to evaluate our results of operations\nbetween periods on a more comparable basis and to help investors analyze\nunderlying trends in our business, evaluate the performance of our business\nboth on an absolute basis and relative to our peers and the broader market,\nand provide useful information to both management and investors by excluding\ncertain items that may not be indicative of our core operating results and\noperational strength of our business.\n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n Transaction expenses   1       38       9       185   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Merger related intangible asset amortization((1))   31       30       93       40   \n Impact on depreciation related to acquired fleet((2))   (10 )     (21 )     (32 )     (30 ) \n Impact of the fair value mark-up of acquired fleet((3))   10       7       37       11   \n Restructuring and transformation initiative costs((4))   2       1       7       1   \n Other((5))   1       3       1       1   \n Tax impact of adjustments above((6))   (8 )     (13 )     (28 )     (63 ) \n Adjusted net income $ 131     $ 74     $ 186     $ 170   \n                 \n Weighted average diluted shares outstanding   33.5       33.3       33.5       30.7   \n                 \n Adjusted earnings per diluted share $ 3.91     $ 2.22     $ 5.55     $ 5.54   \n (1) Reflects the amortization of the intangible assets acquired in major \n acquisitions completed since the beginning of 2024. \n (2) Reflects the impact of extending the useful lives of rental equipment \n acquired in major acquisitions, net of the impact of additional depreciation \n associated with the fair value mark-up of such equipment. \n (3) Reflects additional costs recorded in cost of sales of rental equipment \n associated with the fair value mark-up of rental equipment acquired in major \n acquisitions and subsequently sold. \n (4) Restructuring and transformation initiative costs primarily consist of \n employee severance and other restructuring related costs, together with \n incremental non-recurring costs associated with strategic business \n transformation initiative designed to improve operational efficiency and \n profitability. \n (5) Other includes impairment charges and the pre-divestiture impact of the \n studio entertainment business. \n (6) The tax rate applied for all adjustments is 24.9% in the three and nine \n months ended September 30, 2026, and 25.0% in the three and nine months ended \n September 30, 2025, (excluding studio entertainment impact) and reflects the \n statutory rates in the applicable entities. The tax rate applied for the \n studio entertainment adjustment was 24.2% in the three and nine months ended \n September 30, 2025, and reflects the stand-alone annual effective tax rate. \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n FREE CASH FLOW \n Unaudited \n (In millions) \n\n\nFree cash flow represents net cash provided by (used in) operating activities\nless rental equipment expenditures and non-rental capital expenditures, plus\nproceeds from disposal of rental equipment, proceeds from disposal of property\nand equipment, and other investing activities. Free cash flow is used by\nmanagement in analyzing the Company’s ability to service and repay its debt,\nfund potential acquisitions and to forecast future periods. However, this\nmeasure does not represent funds available for investment or other\ndiscretionary uses since it does not deduct cash used to service debt or for\nother non-discretionary expenditures.\n   Nine Months Ended September 30, \n     2026       2025   \n Net cash provided by operating activities $ 951     $ 770   \n         \n Rental equipment expenditures   (1,056 )     (835 ) \n Proceeds from disposal of rental equipment   319       306   \n Net rental equipment expenditures   (737 )     (529 ) \n         \n Non-rental capital expenditures   (107 )     (123 ) \n Proceeds from disposal of property and equipment   26       15   \n Free cash flow $ 133     $ 133   \n         \n Acquisitions, net of cash acquired   —       (4,256 ) \n Proceeds from disposal of business, net   —       99   \n Decrease (increase) in net debt, excluding financing activities $ 133     $ (4,024 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261027775081/en/\n(https://www.businesswire.com/news/home/20261027775081/en/)\n\nLeslie Hunziker \n\nSenior Vice President,\n\nInvestor Relations, Communications & Sustainability\n\nLeslie.hunziker@hercrentals.com \n(mailto:Leslie.hunziker@hercrentals.com) \n239-301-1675\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw5tqrc3a-20261027","title":"Herc Holdings Reports Third Quarter 2026 Results and Increases 2026 Full Year Guidance","author":"Business Wire","ticker":"HRI","created":"2026-10-27T10:30:00.314Z","tickers":["HRI"],"exchange":"NYSE","article_body":"Herc Holdings Reports Third Quarter 2026 Results and Increases 2026 Full Year\nGuidance\n\nThird Quarter 2026 Highlights\n\n\n * Record equipment rental revenue of $1,254 million increased 12%\n\n * Record total revenues of $1,364 million increased 5%\n\n * Net income of $104 million, or $3.10 per diluted share, and adjusted net\nincome of $131 million, or $3.91 per diluted share\n\n * Record adjusted EBITDA of $603 million increased 9% with adjusted EBITDA\nmargin up 190 bps\n\nHerc Holdings Inc. (NYSE: HRI) (\"Herc Holdings\" or the \"Company\") today\nreported financial results for the quarter ended September 30, 2026.\n\n“Our team delivered an exceptional third quarter, leveraging our scale,\nbroad equipment offering, deep customer relationships and superior project\nexecution to capitalize on accelerating customer demand,” said Larry Silber,\nchief executive officer. “Equipment rental revenue increased 12% on an\naverage OEC fleet that increased less than 2%, resulting in a 360 basis point\nimprovement in dollar utilization. Expert fleet management drove high time\nutilization and disciplined fleet deployment, while pricing improvement and a\nhigher specialty mix further enhanced fleet efficiency.\n\n“The strong performance was led by robust mega-project volume and\ndouble-digit expansion in our specialty solutions business,” said Silber.\n“Revenue synergies from H&E were an increasing contributor in the\nquarter, consistent with the second-half weighting we previously outlined, as\nnew specialty branches continued to ramp and we advanced cross-selling,\nbroader fleet access and national account penetration. Local-market demand\nremained stable.\n\n“Growth in our large-project pipeline continues to exceed our expectations,\nwith expanding opportunities across data centers, infrastructure,\nmanufacturing facilities, and energy projects. As a result, we are raising our\nfull-year 2026 revenue, adjusted EBITDA and capex guidance for the second time\nthis year,” Silber added. “Our ability to serve these complex projects and\ndeliver for our customers reflects our increased scale and ongoing\ntechnological innovation, as well as the hard work, expertise and dedication\nof Team Herc. I want to thank all of our employees for their continued\ncommitment to safely serving our customers and driving our success.”\n\n2026 Third Quarter Financial Results\n\n\n * Total revenues increased 5% to $1,364 million compared to $1,304 million in\nthe prior-year period. The increase was driven by a 12% increase in equipment\nrental revenue resulting from a slightly larger average fleet size, an\nincrease in volume on mega projects and acquisition revenue synergies. Sales\nof rental equipment decreased by $66 million as disposal volume was elevated\nin the prior year to optimize the fleet after the H&E acquisition.\n\n * Dollar utilization was 43.5% in the third quarter up from 39.9% in the\nprior-year period, due to the increase in fleet efficiency and a favorable\nshift in mix to higher-return fleet on rent year-over-year.\n\n * Direct operating expenses were $532 million, or 42.4% of equipment rental\nrevenue, compared to $467 million, or 41.6%, in the prior-year period.\nOperating expenses as a percent of equipment rental revenue were elevated\nduring the period primarily related to increased transportation and fuel\nexpenses as a result of continued macroeconomic headwinds. Higher field\nincentive compensation, driven by outperformance, especially in fleet\nefficiency, also contributed to the increase during the quarter.\n\n * Depreciation of rental equipment increased 4% to $255 million due to higher\nyear-over-year average fleet size. Non-rental depreciation and amortization\nincreased 6% to $74 million primarily due to amortization of acquisition\nintangibles, particularly the H&E customer relationship intangible asset,\nand an increase in non-rental asset depreciation resulting from the growth of\nthe business.\n\n * Selling, general and administrative expenses were $178 million, or 14.2% of\nequipment rental revenue, compared to $166 million, or 14.8%, in the\nprior-year period. The decrease as a percent of equipment rental revenue is\ndue to continued focus on improving operating leverage, including acquisition\ncost synergies, while expanding revenues.\n\n * Interest expense was $126 million compared with $134 million in the prior-year\nperiod, reflecting lower average outstanding borrowings and lower interest\nrates on floating-rate debt.\n\n * Net income was $104 million, or $3.10 per diluted share, compared to $30\nmillion, or $0.90 per diluted share, in the prior-year period. Adjusted net\nincome was $131 million, or $3.91 per diluted share, compared to $74 million,\nor $2.22 per diluted share, in the prior-year period.\n\n * Adjusted EBITDA increased 9% to $603 million compared to $551 million in the\nprior-year period. Adjusted EBITDA margin was 44.2% compared to 42.3% in the\nprior year period reflecting higher equipment rental revenue, improved\noperating leverage, partially offset by higher delivery and fuel costs.\n\nNine Months 2026 Financial Results\n\n\n * Total revenues increased 17% to $3,707 million compared to $3,167 million in\nthe prior-year period. This year-over-year increase was driven by a 21%\nincrease in equipment rental revenue resulting from the larger fleet size\nafter the H&E acquisition, an increase in volume on mega projects and\nrevenue synergies. Sales of rental equipment decreased by $29 million during\nthe period as disposal volume was elevated in the prior year to optimize the\nfleet after the H&E acquisition.\n\n * Dollar utilization was 39.8%, up from 38.8% in the prior-year period due to\nthe increase in fleet efficiency and the favorable shift in mix to\nhigher-return fleet on rent year-over-year.\n\n * Direct operating expenses were $1,476 million, or 44.6% of equipment rental\nrevenue compared to $1,173 million, or 43.0%, in the prior-year period.\nOperating expenses as a percent of equipment rental revenue were elevated\nduring the period primarily related to the impact of the H&E acquisition\nincluding new specialty locations from branch optimization as well as\ngreenfields, all of which take more time to mature. Transportation and fuel\ncosts were also significantly higher year-over-year.\n\n * Depreciation of rental equipment increased 21% to $739 million due to higher\nyear-over-year average fleet size primarily as a result of the H&E\nacquisition. Non-rental depreciation and amortization increased 50% to $222\nmillion primarily due to amortization of acquisition intangibles, particularly\nthe H&E customer relationship intangible asset, and an increase in\nnon-rental asset depreciation resulting from the growth of the business.\n\n * Selling, general and administrative expenses were $479 million, or 14.5% of\nequipment rental revenue, compared to $411 million, or 15.0%, in the\nprior-year period. The decrease as a percent of equipment rental revenue\nprimarily was related to continued focus on improving operating leverage,\nincluding acquisition cost synergies, while expanding revenues.\n\n * Interest expense was $380 million compared with $282 million in the prior-year\nperiod, reflecting the new debt issued in June 2025 to fund the H&E\nacquisition, partially offset by lower average interest rates on floating-rate\ndebt year-over-year.\n\n * Net income was $99 million, or $2.96 per diluted share, compared to $23\nmillion net loss, or $0.75 loss per diluted share, in the prior-year period.\nAdjusted net income was $186 million, or $5.55 per diluted share, compared to\n$170 million, or $5.54 per diluted share, in the prior-year period.\n\n * Adjusted EBITDA increased 18% to $1,538 million compared to $1,299 million in\nthe prior-year period. Adjusted EBITDA margin was 41.5% compared to 41.0% in\nthe prior year period primarily reflecting revenue growth and improved\noperating leverage, partially offset by higher direct operating expenses,\nincluding delivery and fuel costs.\n\nRental Fleet\n\n\n * Net rental equipment capital expenditures were as follows (in millions):\n   Nine Months Ended September 30, \n     2026       2025   \n Rental equipment expenditures $ 1,056     $ 835   \n Proceeds from disposal of rental equipment   (319 )     (306 ) \n Net rental equipment capital expenditures $ 737     $ 529   \n\n\n\n * As of September 30, 2026, the Company's total fleet was approximately $10.0\nbillion at OEC.\n\n * Average fleet at OEC in the third quarter increased 1.7% compared to the\nprior-year period.\n\n * Average fleet age was 46 and 45 months as of September 30, 2026, and 2025,\nrespectively.\n\nDisciplined Capital Management\n\n\n * The Company opened 2 previously planned greenfield locations in the third\nquarter.\n\n * Net debt was $8.0 billion as of September 30, 2026, with net leverage of 3.90x\ncompared to $8.2 billion and 3.84x(1) in the same prior-year period. Cash and\ncash equivalents and unused commitments under the ABL Credit Facility\ncontributed to approximately $2.1 billion of liquidity as of September 30,\n2026.\n\n * The Company declared its quarterly dividend of $0.70 and paid to shareholders\nof record as of September 2, 2026, on September 16, 2026.\n (1) Net leverage is calculated using pro forma trailing twelve month adjusted \n EBITDA including the standalone, pre-acquisition results of H&E. \n\n\nUpdating 2026 Outlook\n\nThe Company is raising its full year 2026 equipment rental revenue, adjusted\nEBITDA, gross and net rental capital expenditures guidance ranges.\n   Previous Guidance   Updated 2026 Guidance \n Equipment rental revenue: $4.375 billion to $4.475 billion   $4.475 billion to $4.550 billion \n Adjusted EBITDA: $2.05 billion to $2.125 billion   $2.10 billion to $2.15 billion \n Net rental equipment capital expenditures: $850 million to $950 million   $1.0 billion to $1.1 billion \n Gross capex: $1.25 billion to $1.40 billion   $1.45 billion to $1.60 billion \n\n\nAs a leader in an industry where scale matters, the Company expects to\ncontinue to gain share by capturing an outsized portion of the forecasted\nhigher construction spending in 2026, strengthening its fleet through targeted\ninvestment and ongoing gains in fleet efficiency, capitalizing on\nacquisition-related branch optimization and greenfield openings, and\ncross-selling a diversified product portfolio.\n\nEarnings Call and Webcast Information\n\nHerc Holdings' third quarter 2026 earnings webcast will be held today at 8:30\na.m. U.S. Eastern Time. Interested U.S. parties may call +1-833-461-5787 and\ninternational participants should call the country specific dial in numbers\nlisted at https://help.events.q4inc.com/eahc/international-dial-in-numbers\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fhelp.events.q4inc.com%2Feahc%2Finternational-dial-in-numbers&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=https%3A%2F%2Fhelp.events.q4inc.com%2Feahc%2Finternational-dial-in-numbers&index=1&md5=44be7c3950036f3902979810abc67a5b)\n, using the meeting ID: 383 873 427. Please dial in at least 10 minutes before\nthe call start time to ensure that you are connected to the call and to\nregister your name and company.\n\nThose who wish to listen to the live conference call and view the accompanying\npresentation slides should visit the Events and Presentations tab of the\nInvestor Relations section of the Company's website at IR.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2FIR.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=IR.HercRentals.com&index=2&md5=6eef3d93c70156264329a6344db4fe8e)\n. The press release and presentation slides for the call will be posted to\nthis section of the website prior to the call. A replay of the conference call\nwill be available via webcast on the Company website at IR.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2FIR.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=IR.HercRentals.com&index=3&md5=bc548a1fb3d12684c2a9af4c77daeacd)\n, where it will be archived for 12 months after the call.\n\nAbout Herc Holdings Inc.\n\nFounded in 1965, Herc Holdings Inc., which operates through its Herc Rentals\nInc. subsidiary, is a full-line rental supplier with 615 locations across\nNorth America and 2025 total revenues were approximately $4.4 billion. We\noffer products, services and technologies aimed at helping customers work more\nefficiently, effectively and safely. Our classic fleet includes aerial,\nearthmoving, material handling, trucks and trailers, air compressors, and\ncompaction. Our Herc Rentals ProSolutions® offering includes\nindustry-specific, solutions-based services in tandem with power generation,\nclimate control, remediation and restoration, pumps, and trench shoring\nequipment as well as our Herc Rentals ProContractor® professional grade\ntools. Our ProControl by Herc Rentals™ digital platform combines a seamless\ne-commerce experience with integrated project and fleet management tools,\nleveraging telematics and real-time analytics to help customers optimize\nproductivity across their operations. We employ approximately 10,200\nemployees, who equip our customers and communities to build a brighter future.\nLearn more at www.HercRentals.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.HercRentals.com&esheet=54628873&newsitemid=20261027775081&lan=en-US&anchor=www.HercRentals.com&index=4&md5=2996bf00a50654478571ae0e126e2cec)\nand follow us on Instagram, Facebook and LinkedIn.\n\nAll references to “Herc Holdings” or the “Company” in this press\nrelease refer to Herc Holdings Inc. and its subsidiaries, unless otherwise\nindicated.\n\nCertain Additional Information\n\nIn this release we refer to the following operating measures:\n\n\n * Dollar utilization: calculated by dividing rental revenue (excluding re-rent,\ndelivery, pick-up and other ancillary revenue) by the average OEC of the\nequipment fleet for the relevant time period, based on the guidelines of the\nAmerican Rental Association (ARA).\n\n * OEC: original equipment cost based on the guidelines of the ARA, which is\ncalculated as the cost of the asset at the time it was first purchased plus\nadditional capitalized refurbishment costs (with the basis of refurbished\nassets reset at the refurbishment date).\n\nForward-Looking Statements\n\nThis press release includes forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act, as amended, and the Private\nSecurities Litigation Reform Act of 1995. Forward-looking statements are\ngenerally identified by the words \"estimates,\" \"expects,\" \"anticipates,\"\n\"projects,\" \"plans,\" \"intends,\" \"believes,\" \"forecasts,\" \"looks,\" and future\nor conditional verbs, such as \"will,\" \"should,\" \"could\" or \"may,\" as well as\nvariations of such words or similar expressions. All forward-looking\nstatements are based upon our current expectations and various assumptions and\nthere can be no assurance that our current expectations will be achieved. You\nshould not place undue reliance on the forward-looking statements. They are\nsubject to future events, risks and uncertainties - many of which are beyond\nour control - as well as potentially inaccurate assumptions, that could cause\nactual results to differ materially from those in the forward-looking\nstatements. Factors that could cause actual results to differ materially from\nthose projected include, but are not limited to, the following: (1) the\ncyclical nature of our industry and our dependence on the levels of capital\ninvestment and maintenance expenditures by our customers; (2) the\ncompetitiveness of our industry, including the potential downward pricing\npressures or the inability to increase prices; (3) our dependence on\nrelationships with key suppliers; (4) our heavy reliance on communication\nnetworks, centralized information technology systems and third party\ntechnology and services and our ability to maintain, upgrade or replace our\ninformation technology systems; (5) our ability to respond adequately to\nchanges in technology and customer demands; (6) our ability to attract and\nretain key management, sales and trades talent; (7) our rental fleet is\nsubject to residual value risk upon disposition; (8) the impact of climate\nchange and the legal and regulatory responses to such change; (9) our ability\nto execute our strategy to grow through strategic transactions; (10) our\nsignificant indebtedness; and (11) our ability to realize all the anticipated\nbenefits of the acquisition of H&E Equipment Services, Inc. Further\ninformation on the risks that may affect our business is included in filings\nwe make with the Securities and Exchange Commission from time to time,\nincluding our most recent annual report on Form 10-K, subsequent quarterly\nreports on Form 10-Q, and in our other SEC filings. We undertake no obligation\nto update or revise forward-looking statements that have been made to reflect\nevents or circumstances that arise after the date made or to reflect the\noccurrence of unanticipated events.\n\nInformation Regarding Non-GAAP Financial Measures\n\nIn addition to results calculated according to accounting principles generally\naccepted in the United States (“GAAP”), the Company has provided certain\ninformation in this release that is not calculated according to GAAP\n(“non-GAAP”), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin,\nadjusted net income, adjusted earnings per diluted common share and free cash\nflow. Management uses these non-GAAP measures to evaluate operating\nperformance and period-over-period performance of our core business without\nregard to potential distortions, and believes that investors will likewise\nfind these non-GAAP measures useful in evaluating the Company’s performance.\nThese measures are frequently used by security analysts, institutional\ninvestors and other interested parties in the evaluation of companies in our\nindustry. Non-GAAP measures should not be considered in isolation or as a\nsubstitute for our reported results prepared in accordance with GAAP and, as\ncalculated, may not be comparable to similarly titled measures of other\ncompanies. For the definitions of these terms, further information about\nmanagement’s use of these measures as well as a reconciliation of these\nnon-GAAP measures to the most comparable GAAP financial measures, please see\nthe supplemental schedules that accompany this release.\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS \n Unaudited \n (In millions, except per share data) \n \n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Revenues:               \n Equipment rental $ 1,254     $ 1,122     $ 3,307     $ 2,731   \n Sales of rental equipment   85       151       333       362   \n Sales of new equipment, parts and supplies   13       18       38       46   \n Service and other revenue   12       13       29       28   \n Total revenues   1,364       1,304       3,707       3,167   \n Expenses:               \n Direct operating   532       467       1,476       1,173   \n Depreciation of rental equipment   255       246       739       613   \n Cost of sales of rental equipment   68       134       263       296   \n Cost of sales of new equipment, parts and supplies   9       12       26       30   \n Selling, general and administrative   178       166       479       411   \n Transaction expenses   1       38       9       185   \n Non-rental depreciation and amortization   74       70       222       148   \n Interest expense, net   126       134       380       282   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Other expense (income), net   1       —       (8 )     (3 ) \n Total expenses   1,244       1,266       3,586       3,183   \n Income (loss) before income taxes   120       38       121       (16 ) \n Income tax provision   (16 )     (8 )     (22 )     (7 ) \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n                 \n Weighted average shares outstanding:               \n Basic   33.4       33.2       33.4       30.6   \n Diluted   33.5       33.3       33.5       30.6   \n Income (loss) per share:               \n Basic $ 3.11     $ 0.90     $ 2.96     $ (0.75 ) \n Diluted $ 3.10     $ 0.90     $ 2.96     $ (0.75 ) \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (In millions) \n   \n   September 30, 2026   December 31, 2025 \n ASSETS Unaudited     \n Cash and cash equivalents $ 66     $ 52   \n Receivables, net of allowances   929     769 \n Prepaid expenses   62       72   \n Other current assets   52       63   \n Total current assets   1,109       956   \n Rental equipment, net   6,190       5,880   \n Property and equipment, net   855       868   \n Right-of-use lease assets   1,444       1,489   \n Intangible assets, net   1,559       1,665   \n Goodwill   2,859       2,873   \n Other long-term assets   41       45   \n Total assets $ 14,057     $ 13,776   \n         \n LIABILITIES AND EQUITY       \n Current maturities of long-term debt and financing obligations $ 32     $ 32   \n Current maturities of operating lease liabilities   59       56   \n Accounts payable   556       337   \n Accrued liabilities   384       305   \n Total current liabilities   1,031       730   \n Long-term debt, net   8,004       8,021   \n Financing obligations, net   92       95   \n Operating lease liabilities   1,443       1,479   \n Deferred tax liabilities   1,449       1,446   \n Other long-term liabilities   54       57   \n Total liabilities   12,073       11,828   \n Total equity   1,984       1,948   \n Total liabilities and equity $ 14,057     $ 13,776 \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS \n Unaudited \n (In millions) \n   \n   Nine Months Ended September 30, \n     2026       2025   \n Cash flows from operating activities:       \n Net income (loss) $ 99     $ (23 ) \n Adjustments to reconcile net income (loss) to net cash provided by operating       \n activities: \n Depreciation of rental equipment   739       613   \n Depreciation of property and equipment   97       77   \n Amortization of intangible assets   125       71   \n Amortization of deferred debt and financing obligations costs   9       6   \n Stock-based compensation charges   22       28   \n Provision for receivables allowances   79       58   \n Loss on assets held for sale   —       48   \n Deferred taxes   4       2   \n Gain on sale of rental equipment   (70 )     (66 ) \n Other   13       11   \n Changes in assets and liabilities, net of effects from acquisitions:       \n Receivables   (260 )     (59 ) \n Other assets   11       (19 ) \n Accounts payable   (22 )     10   \n Accrued liabilities and other long-term liabilities   105       13   \n Net cash provided by operating activities   951       770   \n Cash flows from investing activities:       \n Rental equipment expenditures   (1,056 )     (835 ) \n Proceeds from disposal of rental equipment   319       306   \n Non-rental capital expenditures   (107 )     (123 ) \n Proceeds from disposal of property and equipment   26       15   \n Acquisitions, net of cash acquired   —       (4,256 ) \n Proceeds from disposal of business, net   —       99   \n Net cash used in investing activities   (818 )     (4,794 ) \n Cash flows from financing activities:       \n Proceeds from issuance of long-term debt   —       3,467   \n Repayments of long-term debt   (6 )     —   \n Proceeds from revolving lines of credit and securitization   1,688       3,928   \n Repayments on revolving lines of credit and securitization   (1,709 )     (3,299 ) \n Principal payments under finance lease and financing obligations   (18 )     (16 ) \n Dividends paid   (71 )     (64 ) \n Other financing activities, net   (3 )     (14 ) \n Net cash provided by (used in) financing activities   (119 )     4,002   \n Effect of foreign exchange rate changes on cash and cash equivalents   —       —   \n Net change in cash and cash equivalents during the period   14       (22 ) \n Cash and cash equivalents at beginning of period   52       83   \n Cash and cash equivalents at end of period $ 66     $ 61   \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n EBITDA AND ADJUSTED EBITDA RECONCILIATIONS \n Unaudited \n (In millions) \n\n\nEBITDA and adjusted EBITDA–EBITDA represents the sum of net income (loss),\nprovision (benefit) for income taxes, interest expense, net, depreciation of\nrental equipment and non-rental depreciation and amortization. Adjusted EBITDA\nrepresents EBITDA plus the sum of transaction expenses, restructuring and\ntransformation initiative costs, spin-off costs, non-cash stock-based\ncompensation charges, loss on extinguishment of debt (which is included in\ninterest expense, net), impairment charges, gain (loss) on the disposal of a\nbusiness, impact of the fair value mark-up of acquired fleet, impact of the\nstudio entertainment business and certain other items. EBITDA and adjusted\nEBITDA do not purport to be alternatives to net income as an indicator of\noperating performance. Additionally, neither measure purports to be an\nalternative to cash flows from operating activities as a measure of liquidity,\nas they do not consider certain cash requirements such as interest payments\nand tax payments.\n\nAdjusted EBITDA Margin–Adjusted EBITDA Margin, calculated by dividing\nAdjusted EBITDA by Total Revenues, is a commonly used profitability ratio.\n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n Income tax provision   16       8       22       7   \n Interest expense, net   126       134       380       282   \n Depreciation of rental equipment   255       246       739       613   \n Non-rental depreciation and amortization   74       70       222       148   \n EBITDA   575       488       1,462       1,027   \n Non-cash stock-based compensation charges   14       16       22       28   \n Transaction expenses   1       38       9       185   \n Restructuring and transformation initiative costs((1))   2       1       7       1   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Impact of the fair value mark-up of acquired fleet((2))   10       7       37       11   \n Other((3))   1       2       1       (1 ) \n Adjusted EBITDA $ 603     $ 551     $ 1,538     $ 1,299   \n                 \n Total revenues $ 1,364     $ 1,304     $ 3,707     $ 3,167   \n Adjusted EBITDA $ 603     $ 551     $ 1,538     $ 1,299   \n Adjusted EBITDA margin   44.2 %     42.3 %     41.5 %     41.0 % \n (1) Restructuring and transformation initiative costs primarily consist of \n employee severance and other restructuring related costs, together with \n incremental non-recurring costs associated with strategic business \n transformation initiative designed to improve operational efficiency and \n profitability. \n (2) Reflects additional costs recorded in cost of sales of rental equipment \n associated with the fair value mark-up of rental equipment acquired in major \n acquisitions and subsequently sold. \n (3) Other includes impairment charges and the pre-divestiture impact of the \n studio entertainment business. \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE \n Unaudited \n (In millions, except per share data) \n\n\nAdjusted Net Income and Adjusted Earnings per Diluted Share–Adjusted Net\nIncome represents the sum of net income (loss), transaction expenses,\nrestructuring and transformation initiative costs, spin-off costs, loss on\nextinguishment of debt, impairment charges, gain (loss) on the disposal of a\nbusiness, merger related intangible asset amortization, impact on depreciation\nof acquired fleet, impact of the fair value mark-up of acquired fleet, income\n(loss) of the studio entertainment business, and certain other items. Adjusted\nEarnings per Diluted Share represents Adjusted Net Income divided by weighted\naverage diluted shares outstanding. Adjusted Net Income and Adjusted Earnings\nper Diluted Share are important measures to evaluate our results of operations\nbetween periods on a more comparable basis and to help investors analyze\nunderlying trends in our business, evaluate the performance of our business\nboth on an absolute basis and relative to our peers and the broader market,\nand provide useful information to both management and investors by excluding\ncertain items that may not be indicative of our core operating results and\noperational strength of our business.\n   Three Months Ended   Nine Months Ended \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025   \n Net income (loss) $ 104     $ 30     $ 99     $ (23 ) \n Transaction expenses   1       38       9       185   \n (Gain) loss on assets held for sale   —       (1 )     —       48   \n Merger related intangible asset amortization((1))   31       30       93       40   \n Impact on depreciation related to acquired fleet((2))   (10 )     (21 )     (32 )     (30 ) \n Impact of the fair value mark-up of acquired fleet((3))   10       7       37       11   \n Restructuring and transformation initiative costs((4))   2       1       7       1   \n Other((5))   1       3       1       1   \n Tax impact of adjustments above((6))   (8 )     (13 )     (28 )     (63 ) \n Adjusted net income $ 131     $ 74     $ 186     $ 170   \n                 \n Weighted average diluted shares outstanding   33.5       33.3       33.5       30.7   \n                 \n Adjusted earnings per diluted share $ 3.91     $ 2.22     $ 5.55     $ 5.54   \n (1) Reflects the amortization of the intangible assets acquired in major \n acquisitions completed since the beginning of 2024. \n (2) Reflects the impact of extending the useful lives of rental equipment \n acquired in major acquisitions, net of the impact of additional depreciation \n associated with the fair value mark-up of such equipment. \n (3) Reflects additional costs recorded in cost of sales of rental equipment \n associated with the fair value mark-up of rental equipment acquired in major \n acquisitions and subsequently sold. \n (4) Restructuring and transformation initiative costs primarily consist of \n employee severance and other restructuring related costs, together with \n incremental non-recurring costs associated with strategic business \n transformation initiative designed to improve operational efficiency and \n profitability. \n (5) Other includes impairment charges and the pre-divestiture impact of the \n studio entertainment business. \n (6) The tax rate applied for all adjustments is 24.9% in the three and nine \n months ended September 30, 2026, and 25.0% in the three and nine months ended \n September 30, 2025, (excluding studio entertainment impact) and reflects the \n statutory rates in the applicable entities. The tax rate applied for the \n studio entertainment adjustment was 24.2% in the three and nine months ended \n September 30, 2025, and reflects the stand-alone annual effective tax rate. \n\n HERC HOLDINGS INC. AND SUBSIDIARIES \n SUPPLEMENTAL SCHEDULES \n FREE CASH FLOW \n Unaudited \n (In millions) \n\n\nFree cash flow represents net cash provided by (used in) operating activities\nless rental equipment expenditures and non-rental capital expenditures, plus\nproceeds from disposal of rental equipment, proceeds from disposal of property\nand equipment, and other investing activities. Free cash flow is used by\nmanagement in analyzing the Company’s ability to service and repay its debt,\nfund potential acquisitions and to forecast future periods. However, this\nmeasure does not represent funds available for investment or other\ndiscretionary uses since it does not deduct cash used to service debt or for\nother non-discretionary expenditures.\n   Nine Months Ended September 30, \n     2026       2025   \n Net cash provided by operating activities $ 951     $ 770   \n         \n Rental equipment expenditures   (1,056 )     (835 ) \n Proceeds from disposal of rental equipment   319       306   \n Net rental equipment expenditures   (737 )     (529 ) \n         \n Non-rental capital expenditures   (107 )     (123 ) \n Proceeds from disposal of property and equipment   26       15   \n Free cash flow $ 133     $ 133   \n         \n Acquisitions, net of cash acquired   —       (4,256 ) \n Proceeds from disposal of business, net   —       99   \n Decrease (increase) in net debt, excluding financing activities $ 133     $ (4,024 ) \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261027775081/en/\n(https://www.businesswire.com/news/home/20261027775081/en/)\n\nLeslie Hunziker \n\nSenior Vice President,\n\nInvestor Relations, Communications & Sustainability\n\nLeslie.hunziker@hercrentals.com \n(mailto:Leslie.hunziker@hercrentals.com) \n239-301-1675\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-10-27T10:30:00.38054108Z","server_sent_at_ms":1793097000380},"received_at":"2026-10-27T10:30:00.569Z","source_url":"https://www.businesswire.com/news/home/20261027775081/en/"},"analysis":{"id":"168531","press_release_id":"180692","analysis_json":{"industry":{"label":"Trading Companies & Distributors","sector":"Industrials"},"redFlags":["direct operating expenses as % of equipment rental revenue rose to 42.4% from 41.6% on higher transportation and fuel costs","nine-month free cash flow flat at $133 million despite higher EBITDA, with capex guidance raised to $1.0B-$1.1B net","net leverage increased to 3.90x from 3.84x on H&E acquisition debt"],"eventType":"earnings","narrative":"Herc Holdings reported record Q3 2026 results with equipment rental revenue of $1,254 million, up 12% YoY, and total revenues of $1,364 million, up 5%.\n\nAdjusted EPS nearly doubled to $3.91 from $2.22 a year ago, while adjusted EBITDA rose 9% to a record $603 million with margin up 190 bps to 44.2% on dollar utilization of 43.5%.\n\nManagement raised full-year 2026 guidance for the second time this year, citing mega-project demand across data centers, infrastructure, manufacturing, and energy, plus H&E revenue synergies.\n\nNet debt stood at $8.0 billion with net leverage of 3.90x and roughly $2.1 billion of liquidity.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Second guidance raise of the year on mega-project and data-center demand -- 12% rental revenue growth on less than 2% fleet growth shows pricing power."},"keyFigures":{"eps":3.1,"revenue":"$1,364 million","guidance":"FY2026 equipment rental revenue $4.475B-$4.550B (up from $4.375B-$4.475B); adjusted EBITDA $2.10B-$2.15B (up from $2.05B-$2.125B); net rental capex $1.0B-$1.1B; gross capex $1.45B-$1.60B","revenueYoy":"5%","customDimensions":{"net_debt":"$8.0 billion","adjusted_eps":3.91,"net_leverage":"3.90x","adjusted_ebitda":"$603 million","total_fleet_oec":"$10.0 billion","dollar_utilization":"43.5%","quarterly_dividend":"$0.70","adjusted_ebitda_yoy":"9%","adjusted_ebitda_margin":"44.2%","adjusted_eps_prior_year":2.22,"equipment_rental_revenue":"$1,254 million","equipment_rental_revenue_yoy":"12%","dollar_utilization_prior_year":"39.9%"}},"quotedText":"Growth in our large-project pipeline continues to exceed our expectations, with expanding opportunities across data centers, infrastructure, manufacturing facilities, and energy projects. As a result, we are raising our full-year 2026 revenue, adjusted EBITDA and capex guidance for the second time this year","namedEntities":{"people":[{"name":"Larry Silber","role":"CEO"},{"name":"Leslie Hunziker","role":"Senior Vice President, Investor Relations"}],"products":["Herc Rentals ProSolutions","Herc Rentals ProContractor","ProControl by Herc Rentals"],"companies":[{"name":"Herc Holdings Inc.","ticker":"HRI"},{"name":"H&E Equipment Services, Inc.","relationship":"acquired company"}],"dollarAmounts":[{"amount":"$1,254 million","context":"Q3 2026 record equipment rental revenue"},{"amount":"$1,364 million","context":"Q3 2026 record total revenues"},{"amount":"$603 million","context":"Q3 2026 record adjusted EBITDA"},{"amount":"$3.10","context":"Q3 2026 diluted EPS"},{"amount":"$3.91","context":"Q3 2026 adjusted diluted EPS"},{"amount":"$8.0 billion","context":"net debt at September 30, 2026"},{"amount":"$10.0 billion","context":"total fleet at OEC"},{"amount":"$0.70","context":"quarterly dividend"},{"amount":"$4.475 billion to $4.550 billion","context":"updated FY2026 equipment rental revenue guidance"},{"amount":"$2.10 billion to $2.15 billion","context":"updated FY2026 adjusted EBITDA guidance"}]},"materialImpact":{"score":4,"reasoning":"Record equipment rental revenue up 12%, adjusted EPS nearly doubled YoY ($3.91 vs $2.22), adjusted EBITDA up 9% with 190 bps margin expansion, and a second full-year guidance raise of the year."},"tickerRelevance":{"others":[],"primary":"HRI"},"globalImportance":45,"audienceRelevance":40,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"beat-and-raise with record results","sectorWeight":"construction/rental cycle sensitive","guidanceRaise":"second raise of FY2026"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Herc Holdings reported record Q3 2026 results with equipment rental revenue of $1,254 million, up 12% YoY, and total revenues of $1,364 million, up 5%.\n\nAdjusted EPS nearly doubled to $3.91 from $2.22 a year ago, while adjusted EBITDA rose 9% to a record $603 million with margin up 190 bps to 44.2% on dollar utilization of 43.5%.\n\nManagement raised full-year 2026 guidance for the second time this year, citing mega-project demand across data centers, infrastructure, manufacturing, and energy, plus H&E revenue synergies.\n\nNet debt stood at $8.0 billion with net leverage of 3.90x and roughly $2.1 billion of liquidity.","key_figures":{"eps":3.1,"revenue":"$1,364 million","guidance":"FY2026 equipment rental revenue $4.475B-$4.550B (up from $4.375B-$4.475B); adjusted EBITDA $2.10B-$2.15B (up from $2.05B-$2.125B); net rental capex $1.0B-$1.1B; gross capex $1.45B-$1.60B","revenueYoy":"5%","customDimensions":{"net_debt":"$8.0 billion","adjusted_eps":3.91,"net_leverage":"3.90x","adjusted_ebitda":"$603 million","total_fleet_oec":"$10.0 billion","dollar_utilization":"43.5%","quarterly_dividend":"$0.70","adjusted_ebitda_yoy":"9%","adjusted_ebitda_margin":"44.2%","adjusted_eps_prior_year":2.22,"equipment_rental_revenue":"$1,254 million","equipment_rental_revenue_yoy":"12%","dollar_utilization_prior_year":"39.9%"}},"named_entities":{"people":[{"name":"Larry Silber","role":"CEO"},{"name":"Leslie Hunziker","role":"Senior Vice President, Investor Relations"}],"products":["Herc Rentals ProSolutions","Herc Rentals ProContractor","ProControl by Herc Rentals"],"companies":[{"name":"Herc Holdings Inc.","ticker":"HRI"},{"name":"H&E Equipment Services, Inc.","relationship":"acquired company"}],"dollarAmounts":[{"amount":"$1,254 million","context":"Q3 2026 record equipment rental revenue"},{"amount":"$1,364 million","context":"Q3 2026 record total revenues"},{"amount":"$603 million","context":"Q3 2026 record adjusted EBITDA"},{"amount":"$3.10","context":"Q3 2026 diluted EPS"},{"amount":"$3.91","context":"Q3 2026 adjusted diluted EPS"},{"amount":"$8.0 billion","context":"net debt at September 30, 2026"},{"amount":"$10.0 billion","context":"total fleet at OEC"},{"amount":"$0.70","context":"quarterly dividend"},{"amount":"$4.475 billion to $4.550 billion","context":"updated FY2026 equipment rental revenue guidance"},{"amount":"$2.10 billion to $2.15 billion","context":"updated FY2026 adjusted EBITDA guidance"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-27T10:30:09.192Z","global_importance":45,"audience_relevance":40,"importance_components":{"tickerTier":"mid-cap","eventGravity":"beat-and-raise with record results","sectorWeight":"construction/rental cycle sensitive","guidanceRaise":"second raise of FY2026"}},"durationMs":8229,"modelName":"glm-5.3-flashx"}}