Herc Holdings Q4 Sales Miss by 3.8% as EPS Beats by 11%
Herc Holdings reported Q4 revenue of $1.21 billion, up 27.1% year-on-year but 3.8% below analyst forecasts, while adjusted EPS of $2.07 surged 11% above estimates. The company projected FY2026 EBITDA of $2.05 billion at midpoint, 6.8% below consensus, and posted negative free cash flow of $145 million.
1. Q4 Financial Results
Herc Holdings recorded Q4 revenue of $1.21 billion, a 27.1% increase year-on-year, missing analyst projections by 3.8%. Adjusted EPS rose to $2.07, an 11% beat, while adjusted EBITDA of $519 million fell 4.4% short of estimates. Operating margin declined to 20.7%, and free cash flow swung to a deficit of $145 million.
2. FY2026 Guidance Outlook
The company forecast FY2026 adjusted EBITDA of $2.05 billion at the midpoint, 6.8% below consensus, and full-year revenue guidance of $4.34 billion, 14.2% under analysts’ expectations. Management cited expenses related to its recent industry-leading acquisition as a key factor in the conservative outlook.
3. Operational and Strategic Highlights
Herc’s June acquisition of a fellow equipment rental operator—its largest in the industry—aims to deliver long-term strategic and financial value. Despite a five-year compound annual revenue growth rate of 19.7%, recent operating margin contraction and a two-year EPS decline of 22.1%, driven by share dilution and integration costs, signal near-term efficiency challenges.