Herc (NYSE:HRI) Posts Quarterly Earnings Results, Beats Estimates By $0.67 EPS

Herc (NYSE:HRI) announced its quarterly earnings data on Tuesday. The transportation company reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.67, FiscalAI reports. Herc had a negative net margin of 0.11% and a positive return on equity of 10.72%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.16 billion. During the same quarter in the previous year, the business posted $1.87 earnings per share. The business’s quarterly revenue was up 20.2% compared to the same quarter last year.

Here are the key takeaways from Herc’s conference call:

• Pro forma equipment rental revenue returned to growth, rising 2% year over year in Q2 despite average fleet OEC declining approximately 3%; dollar utilization improved by more than 200 basis points.
• Management raised full-year guidance, targeting approximately $4.425 billion of equipment rental revenue and $2.09 billion of adjusted EBITDA at the midpoints, supported by stronger national-account and mega-project demand.
• The company increased its 2026 net fleet CapEx outlook to roughly $900 million, with about 70% of purchases expected in Q2 and Q3 and the majority weighted toward specialty equipment tied to identified demand.
• Fuel and transportation inflation rose approximately 35% from Q1 and reduced Q2 adjusted EBITDA margin by about 150 basis points; management expects roughly one percentage point of full-year margin pressure and has lowered free-cash-flow guidance to $250 million-$350 million.
• Herc raised its long-term target share of the U.S. mega-project rental opportunity to 15%-20%, but said reaching the upper end will take several years as projects typically generate revenue over three to five years or longer.

Herc Stock Down 4.9%

Shares of Herc stock opened at $140.96 on Wednesday. Herc has a 52-week low of $88.45 and a 52-week high of $188.35. The company has a 50 day moving average of $143.76 and a 200 day moving average of $137.01. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 4.24. The company has a market capitalization of $4.71 billion, a P/E ratio of -528.53, a P/E/G ratio of 29.05 and a beta of 1.88.

Herc Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Friday, May 29th were issued a $0.70 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $2.80 annualized dividend and a yield of 2.0%. Herc’s dividend payout ratio (DPR) is -1,037.04%.

Institutional Investors Weigh In On Herc

Large investors have recently modified their holdings of the company. Hsbc Holdings PLC acquired a new stake in shares of Herc in the 4th quarter valued at $206,000. Empowered Funds LLC grew its stake in shares of Herc by 47.3% during the fourth quarter. Empowered Funds LLC now owns 5,527 shares of the transportation company’s stock worth $820,000 after purchasing an additional 1,775 shares in the last quarter. Summit Securities Group LLC purchased a new position in Herc in the fourth quarter valued at $179,000. Balyasny Asset Management L.P. increased its holdings in Herc by 87.7% in the fourth quarter. Balyasny Asset Management L.P. now owns 51,588 shares of the transportation company’s stock valued at $7,655,000 after buying an additional 24,099 shares during the last quarter. Finally, Freestone Grove Partners LP raised its stake in Herc by 667.9% in the fourth quarter. Freestone Grove Partners LP now owns 573,149 shares of the transportation company’s stock valued at $85,044,000 after buying an additional 498,511 shares in the last quarter. 93.11% of the stock is owned by hedge funds and other institutional investors.

More Herc News

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Second-quarter earnings were $1.43 per share, well above the $0.76 analyst consensus, while revenue of $1.20 billion exceeded expectations of $1.16 billion and increased 20.2% from the prior year. Herc Holdings Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management increased its full-year 2026 guidance, signaling confidence that operating improvements will continue following the H&E Equipment Services acquisition and integration. Incremental cost savings are expected to reach approximately $125 million by year-end, alongside additional revenue synergies. Herc Holdings Reports Second Quarter 2026 Results and Increases 2026 Full Year Guidance
• Neutral Sentiment: Analysts and commentators described the report as potentially strengthening the bull case, with some arguing that the pullback creates an attractive entry point because HRI remains reasonably valued relative to its growth prospects. However, the stock had already risen 54.7% since March, increasing the potential for profit-taking. Herc Holdings Dip Offers An Entry Point
• Negative Sentiment: Despite the headline beat, EPS declined from $1.87 in the year-earlier quarter. Herc also reported a slightly negative net margin, while its debt-to-equity ratio remains elevated at 4.24. Investors may be focusing on profitability and balance-sheet risks rather than the revenue growth and guidance increase. Herc Holdings Second Quarter Earnings Report

Analyst Ratings Changes

HRI has been the subject of several recent research reports. Weiss Ratings raised shares of Herc from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, July 10th. KeyCorp reaffirmed an “overweight” rating and set a $185.00 price objective on shares of Herc in a research report on Wednesday. BNP Paribas Exane initiated coverage on Herc in a research note on Monday, June 29th. They issued a “neutral” rating and a $160.00 price objective on the stock. Citigroup increased their price objective on Herc from $155.00 to $175.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company lifted their target price on Herc from $160.00 to $176.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $176.29.

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.