Herc (NYSE:HRI) Posts Earnings Results, Beats Estimates By $0.99 EPS

Herc (NYSE:HRI) posted its earnings results on Tuesday. The transportation company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $2.92 by $0.99, FiscalAI reports. Herc had a net margin of 1.01% and a return on equity of 10.33%. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same quarter in the previous year, the business posted $2.22 EPS. The business’s quarterly revenue was up 4.6% on a year-over-year basis.

Here are the key takeaways from Herc’s conference call:

• Third-quarter performance was strong: equipment rental revenue rose nearly 12% on less than 2% average OEC fleet growth, while dollar utilization increased 360 basis points and adjusted REBITDA margin expanded to 44.2%.
• Herc raised its full-year outlook, targeting approximately $4.513 billion of equipment rental revenue and $2.13 billion of adjusted REBITDA, both about 2% above prior guidance, supported by robust mega-project demand and growing revenue synergies.
• Management plans to invest an additional roughly $150 million of net fleet CapEx, primarily in specialty equipment tied to identified, multi-year mega-project assignments; executives said the assets should begin contributing to REBITDA in the fourth quarter and strengthen the 2027 earnings base.
• CEO Larry Silber will transition to executive chairman on January 1, 2027, with longtime executive Aaron Birnbaum becoming CEO; management characterized the change as a planned succession reflecting leadership continuity.
• Core rental REBITDA margin declined 70 basis points to 45.2%, as operating-cost inflation, higher incentive compensation, and fuel and freight costs more than offset rental growth and pricing improvements. Local markets remain stable but commercial construction is still pressured by interest-rate sensitivity, while management said pricing has not yet fully offset inflation.

Herc Stock Up 6.2%

Shares of NYSE:HRI opened at $165.68 on Thursday. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 4.22. The company has a fifty day simple moving average of $139.10 and a 200 day simple moving average of $139.36. The firm has a market cap of $5.54 billion, a PE ratio of 112.70 and a beta of 2.04. Herc has a 12-month low of $88.45 and a 12-month high of $188.35.

Herc Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Wednesday, September 2nd. Herc’s payout ratio is 190.48%.

Trending Headlines about Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Strong Q3 earnings and revenue: Herc reported adjusted earnings of $3.91 per share, well above analyst estimates of roughly $2.92–$3.08 and up from $2.22 a year earlier. Revenue rose 4.6% year over year to a record $1.36 billion, supported by higher rental revenue. Herc Holdings Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Outlook and acquisition synergies improved: Management raised its earnings outlook, while investors gained confidence that synergies from the H&E Equipment acquisition are being realized. Reported profits increased more than 76%, helping counterbalance concerns about Herc’s debt load. Herc Holdings Jumps as Earnings Beat Estimates and Outlook Rises
• Positive Sentiment: Analyst support strengthened: Baird raised its price target to $240 from $220 and maintained an outperform rating. JPMorgan raised its target to $230 from $165 with an overweight rating, while Citigroup increased its target to $180 and assigned a buy rating. BNP Paribas Exane also raised its target to $176, though it retained a neutral rating. These revisions reinforce the positive reaction to the earnings report. Analyst Ratings and Price Targets
• Neutral Sentiment: Herc will participate in the Baird 2026 Global Industrial Conference on November 10, potentially providing investors with additional details on integration progress, demand, and capital allocation. Herc to Participate in the Baird 2026 Global Industrial Conference
• Negative Sentiment: Full-year sales guidance reportedly fell meaningfully short of expectations, and Herc’s debt-to-equity ratio of 4.22 remains high. These factors could limit further gains if rental demand weakens or integration costs rise. Herc Full-Year Sales Guidance

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on HRI. Zacks Research raised Herc from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 14th. Weiss Ratings reiterated a “hold (c)” rating on shares of Herc in a report on Monday. Robert W. Baird upped their price objective on shares of Herc from $220.00 to $240.00 and gave the company an “outperform” rating in a research report on Wednesday. Citigroup upped their price objective on shares of Herc from $150.00 to $180.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Barclays restated an “overweight” rating and set a $200.00 target price on shares of Herc in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $201.57.

Herc Company Profile

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.