Herc Rentals Jumps 27.1 Percent in Fourth Quarter Total Revenues

Herc Rentals posted total revenues of $1.209 billion in the fourth quarter of 2025, compared to $951 million in the fourth quarter of 2024, a 27.1-percent increase. Equipment rental jumped 23.8-percent from $839 million to $1.039 billion. Sales of rental equipment leaped from $96 million in Q424 to $147 million in the fourth quarter of 2025, a 53.1 percent hike, while sales of new equipment, parts and supplies nearly doubled from $9 million to $17 million.

For the full year, total revenue increased from $3.568 billion in 2024 to $4.376 million in 2025, a 22.6-percent incline. Full year equipment rental hiked from $3.189 billion a year ago to $3.770 billion in 2025, an 18.2-percent leap. Sales of rental equipment also took a big jump from $311 million to $509 million, a 63.7-percent incline.

In the fourth quarter, integration with H&E Equipment Services, which Herc acquired earlier in the year, advanced with strong execution across the organization and added to the revenue increases. Adjusted EBITDA of $519 million was a 19-percent year-over-year hike, with adjusted EBITDA margin of 43 percent. For the full year, adjusted EBITDA was $1.818 billion, a 15-percent year-over-year hike with adjusted EBITDA margin of 42 percent.

H&E Integration Moving Fast
“2025 was a pivotal year for Herc Rentals,” said CEO Larry Silber. “In June, we completed the largest acquisition in our industry, bringing together two high-quality equipment rental operators to create significant long-term strategic and financial value. We are extremely pleased with the pace and execution of the integration, and I want to thank Team Herc for their dedication and hard work through this period of change. In just six months, we successfully migrated technology systems and data in record time, completed sales and territory optimization initiatives, aligned the fleet mix by market, and achieved run-rate cost synergies ahead of our planned timeline. We are now finalizing the branch network optimization and continue to see strong collaboration across the combined organization as our cultures align.

“Heading into the 2026 spring/summer construction season, our larger platform positions us to leverage scale driven network benefits and industry-leading technology, and begin ramping revenue synergies. Combined with increased participation in mega projects and favorable secular trends in specialty equipment, this sets the stage for above market growth in 2026.”

For the full year, Dollar utilization was 38.5 percent compared to 40.9 percent in the prior-year period, primarily because of lower utilization of the acquired fleet ahead of fleet optimization initiatives.

With the acquired H&E part of the company for the entire year, Herc is expecting equipment rental revenue in the range of $4.275 billion to $4.4 billion in 2026. With adjusted EBITDA of $2 billion to $2.1 billion. It expects to spend $800 million to $1.1 bill in gross rental equipment capital expenditures.

Herc Rentals, headquartered in Bonita Springs, Fla., is No. 3 on the RER 100.