Herc (NYSE:HRI) Posts Earnings Results, Beats Estimates By $0.20 EPS

Herc (NYSE:HRI) issued its quarterly earnings data on Tuesday. The transportation company reported $2.07 EPS for the quarter, beating the consensus estimate of $1.87 by $0.20, FiscalAI reports. The firm had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.25 billion. Herc had a positive return on equity of 16.32% and a negative net margin of 1.68%.The business’s revenue for the quarter was up 27.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.58 EPS.

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

• Completed the industry‑leading June 2025 acquisition of H&E and advanced integration work (80% of branch optimization done) with $125 million of cost synergies expected in 2026 and management saying synergies are tracking ahead of plan.
• 2026 financial guide calls for rental revenue growth of 13%–17%, Adjusted EBITDA of $2.0B–$2.1B (10%–16% growth), and free cash flow of $400M–$600M while targeting a return to 2–3x leverage by year‑end 2027 from a current ~3.9x pro forma.
• Growth levers include a ~25% increase in standalone/co‑located specialty branches, >50% growth in digital revenue, ~80% telematics penetration, and early specialty sales momentum that management expects to lift higher‑margin mix over time.
• Fleet and capital plans call for roughly $950M gross CapEx at the midpoint (net CapEx ~ $650M) with materially lower disposals this year (management cited ~ $700M of disposals visibility) as the company shifts from right‑sizing to aging the acquired fleet and improving utilization.
• Near‑term headwinds include expected pro‑forma dollar utilization decline in Q1, margin pressure from elevated used equipment sales and lower fixed cost absorption in some H&E‑heavy local markets, and elevated leverage until revenue and cost synergies fully flow through.

Herc Stock Performance

HRI opened at $150.45 on Wednesday. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 4.28. Herc has a 12-month low of $96.18 and a 12-month high of $190.04. The firm has a 50 day moving average of $160.08 and a two-hundred day moving average of $139.82. The firm has a market capitalization of $5.01 billion, a PE ratio of -59.70, a P/E/G ratio of 1.61 and a beta of 1.77.

Herc Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $2.80 dividend on an annualized basis and a yield of 1.9%. Herc’s dividend payout ratio (DPR) is currently -111.11%.

Analyst Ratings Changes

Several brokerages recently issued reports on HRI. Barclays upped their target price on Herc from $160.00 to $175.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Wells Fargo & Company upped their price objective on shares of Herc from $170.00 to $189.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. JPMorgan Chase & Co. increased their price objective on shares of Herc from $150.00 to $165.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. Wall Street Zen upgraded shares of Herc from a “sell” rating to a “hold” rating in a research note on Sunday, November 2nd. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Herc in a research note on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Herc currently has a consensus rating of “Moderate Buy” and a consensus price target of $181.43.

Key Herc News

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Q4 EPS beat expectations and strong year‑over‑year revenue growth (quarterly revenue up ~27%); this beat on the bottom line supports near‑term earnings credibility. MarketBeat: Q4 Results & Call
• Positive Sentiment: Management announced full‑year 2026 guidance and highlighted the strategic rationale for closing the large H&E acquisition, which could drive long‑term scale and synergies if execution proceeds as planned. BusinessWire: Full‑Year Results & Guidance
• Neutral Sentiment: Detailed materials — the earnings call transcript and slide deck — are available for investors to review guidance detail and management’s integration commentary. Use these to assess margin trajectory and capex assumptions. Seeking Alpha: Earnings Transcript
• Negative Sentiment: Revenue missed consensus (reported $1.21B vs. ~$1.25B est.) and the company still shows a negative net margin; EPS is well below last year’s level, raising near‑term profitability concerns. Investing.com: Beats EPS, Misses Revenue
• Negative Sentiment: Analysts flag execution risks on the H&E integration — delayed synergies or higher‑than‑expected integration costs could pressure 2026 earnings and the stock if projected benefits slip. TipRanks: Execution Risks on H&E Deal
• Negative Sentiment: Market reaction: shares opened lower as traders focused on the revenue miss and integration risk headlines. Short‑term volatility is likely while investors digest guidance detail and integration timelines. KalkineMedia: HRI Opens Lower

Institutional Investors Weigh In On Herc

Several hedge funds have recently added to or reduced their stakes in the business. Comerica Bank grew its position in Herc by 22.3% during the third quarter. Comerica Bank now owns 980 shares of the transportation company’s stock valued at $114,000 after buying an additional 179 shares during the period. State of Wyoming purchased a new stake in Herc in the 2nd quarter worth $284,000. Captrust Financial Advisors lifted its holdings in Herc by 5.1% during the second quarter. Captrust Financial Advisors now owns 2,051 shares of the transportation company’s stock valued at $270,000 after purchasing an additional 100 shares in the last quarter. Cetera Investment Advisers acquired a new stake in shares of Herc in the second quarter valued at about $267,000. Finally, Smartleaf Asset Management LLC increased its stake in shares of Herc by 50.2% during the fourth quarter. Smartleaf Asset Management LLC now owns 332 shares of the transportation company’s stock worth $51,000 after purchasing an additional 111 shares in the last quarter. 93.11% of the stock is owned by hedge funds and other institutional investors.

Herc Company Profile

Herc Holdings Inc (NYSE: HRI) operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company’s fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.