Herc Holdings Swings to Q2 Profit on 23% Rental Revenue Jump, Integration Gains
HRI sits 85% above its 52-week low of $88.45.
Summary
Herc Holdings reported Q2 2026 net income of $19 million, reversing a year-ago loss, as equipment rental revenue jumped 23% to $1.072 billion. The H&E acquisition continues to drive top-line growth and operational synergies.
Key Events · Earnings and Guidance · HRI
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Q2 Profit Reversal
Net income of $19 million ($0.57/share) compared to a loss of $35 million in Q2 2025, driven by 23% higher equipment rental revenue of $1.072 billion.
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H&E Integration Driving Growth
The H&E acquisition, completed in June 2025, contributed significantly to the revenue increase. Pro forma rental revenue was flat year-over-year, reflecting growth in mega projects offset by moderation in some local markets.
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Strong Operating Cash Flow
Operating cash flow reached $591 million for the first half of 2026, up from $412 million a year ago, supported by higher collections and lower transaction costs.
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Liquidity and Debt Management
Total nominal debt stands at $8.0 billion with $2.0 billion available under the ABL Credit Facility. The AR Facility was upsized to $500 million in May 2026. Interest expense rose 47% to $126 million due to acquisition financing.
Analysis · HRI · Trade & Services
A sharp turnaround defined Herc Holdings' Q2 2026, with net income reaching $19 million compared to a $35 million loss a year ago. Equipment rental revenue surged 23% to $1.072 billion, fueled by the H&E acquisition and robust demand on mega projects. While interest expense remains elevated at $126 million, the company generated $591 million in operating cash flow and maintained ample liquidity with $2.0 billion available under its ABL facility. The results demonstrate that the H&E integration is progressing and that scale is translating into improved profitability, though the heavy debt load and seasonal softness in local markets warrant monitoring.
At the time of this filing, HRI was trading at $163.79 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5.3B. The 52-week trading range was $88.45 to $188.35. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.