Herc Holdings Sees 23% Full-Year Revenue Growth and Q4 EBITDA Up 19%
Herc Holdings posted 2025 revenue of $4.376 billion, up 23%, with equipment rental revenue rising 18% and adjusted EBITDA increasing 19% to $519 million in Q4. Integration of the H&E acquisition delivered cost synergies ahead of schedule, and management expects above-market growth in 2026 spring/summer.
1. H&E Acquisition Integration Progress
In June 2025, Herc Holdings closed the industry’s largest equipment rental acquisition of H&E and within six months migrated technology systems, optimized sales territories and fleet mix by market, and secured initial cost synergies ahead of the planned timeline while finalizing branch network restructuring.
2. Q4 2025 Financial Results
Herc Holdings generated total Q4 revenue of $1.209 billion, a 27% year-over-year increase driven by a 24% rise in equipment rental revenue. Net income reached $24 million ($0.72 per diluted share) and adjusted EBITDA grew 19% to $519 million (42.9% margin), although dollar utilization fell to 37.5%.
3. Full Year 2025 Performance
Full-year revenue climbed 23% to $4.376 billion, with equipment rental revenue up 18% and $198 million in equipment sales. Depreciation expenses rose (rental: $856 million, non-rental D&A: $224 million) and SG&A increased to 15.0% of rental revenue, while adjusted net income was $69 million ($2.07 per share).
4. 2026 Growth Outlook
Entering the 2026 spring/summer construction season, management anticipates leveraging the expanded platform to drive revenue synergies, tap mega-project participation and capitalize on specialty equipment trends for above-market growth.