Fueled by H&E Acquisition, Herc Rentals’ Total Revenue Jumps 35.1 Percent in Third Quarter
Herc Rentals posted $1,304 million in the third quarter of 2025, compared to $965 million in the third quarter of 2024, a 35.1-percent increase. Equipment rental revenues jumped from $866 million a year ago to $1,122 million in the third quarter of 2025, a 29.6 percent jump. Sales of rental equipment almost doubled from $81 million to $151 million, an 86.4-percent increase. The addition of revenue from the former H&E Equipment Services was clearly the catalyst in the strong growth numbers.
The year-over-year increases for the first nine months of the year are not nearly as dramatic. Total revenue increased from $2,617 million to $3,167 million, a 21-percent hike. Equipment rental revenues increased during the nine-month period from $2,350 million to $2,731 million, a 16.2-percent clip.
Herc’s acquisition of H&E was finalized on June 2, therefore the dramatic increase in revenue numbers included almost the entire final month of the second quarter and all of the third quarter.
The technology integration between the two companies occurred during the third quarter. Adjusted EBITDA of $551 million increased 24 percent in the third quarter wth adjusted EBITDA margin of 42 percent. Also, Herc successfully completed the same of Cinelease studio entertainment business on July 31.
Dollar utilization was 39.9 percent in the third quarter compared to 42.2 percent in the year-ago quarter, primarily because of lower utilization of the acquired fleet ahead of fleet optimization initiatives.
In addition to the acquisition of H&E Equipment Services, Herc also opened 17 greenfield locations during the nine months ended Sept. 30, 2025.
IT integration
“As we continue to execute on our strategic priorities, the third quarter marked a pivotal step in unlocking the value of our acquisition of H&E Equipment Services,” said Larry Silber, president and CEO. “From day one, our focus has been on bringing together the strengths of both companies through a seamless integration, and we’re very pleased with the pace and success of those efforts to date. In the third quarter, we achieved a major milestone by completing the full IT integration — successfully migrating all of the acquired branches onto Herc’s systems and network infrastructure within a best-in-class timeline. Our combined team now operates from a single, unified dashboard that spans ERP, fleet management, pricing, CRM, logistics, business intelligence, human capital management and our industry-leading, customer-facing technology platform, ProControl by Herc Rentals. This alignment is poised to drive efficiencies and position us for long term market-share expansion.
“As we continue integration efforts for fleet and branch network optimization, the operating environment remains stable despite broader macroeconomic uncertainties. While local market growth is tempered by prolonged high interest rates, our national accounts and specialty products and solutions delivered another strong quarter. Our scale and diversified footprint — across geographies, end markets, and product lines — continue to be key strengths, enabling us to navigate this bifurcated landscape with resilience and agility.”
Headquartered in Bonita Springs, Fla., is No. 3 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.