H&E Rentals’ First Quarter Numbers Decline After Merger Announcements

H&E Equipment Services, also known as H&E Rentals, reported $319.5 million in total revenue in the first quarter of 2025, compared to $371.4 million in the same period a year ago, a 14-percent decline. Equipment rental revenue dropped 7.2 percent from $295.3 million to $274.0 million. H&E officials attributed the decline to a variety of factors, including seasonal softness, one fewer calendar day, and merger announcements during the quarter.

The company’s branch expansion strategy continued with only those openings that were already planned and underway for the first and second quarters, including four openings in the first quarter, followed by one opening so far in the second quarter. These openings, combined with H&E’s existing operations, allow H&E to compete more effectively for new business opportunities.

The company said it believes the merger with Herc Rentals will further elevate operating resiliency across a broader network of end markets, geographies, products and customer solutions, and remains enthusiastic about the merger. The company still expects a mid-year 2025 close to the transaction.

Adjusted EBITDA totaled $131.2 million, a decrease of 18.9 percent compared to $161.7 during the first quarter of 2025. Sales of rental equipment declined 50.3 percent to $23.9 million compared to $48.1 million a year ago. Average time utilization was 60.3 percent compared to 63.6 percent a year ago. Dollar utilization was 33.1 percent compared to 37 percent. Average rental rates declined 2 percent compared to the first quarter last year and 1.3 percent on a sequential quarterly basis.

H&E Equipment Services is based in Baton Rouge, La. Its pending acquisition by Herc Rentals is expected to be finalized mid-year.