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Earnings documents stored for HRI.
Investor releaseQuarter not tagged2026-08-27Why Is Herc Holdings (HRI) Up 9.2% Since Last Earnings Report?
Zacks
Why Is Herc Holdings (HRI) Up 9.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Herc Holdings (HRI). Shares have added about 9.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Herc Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Herc Holdings reported second-quarter 2026 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of 76 cents by 88.2%. However, earnings declined on a year-over-year basis. Revenues of $1.20 billion surpassed the consensus mark of $1.15 billion by 4.8% and increased 20.2% year over year. This year-over-year increase was owing to a 23% increase in equipment rental revenues resulting from the larger fleet size after the H&E acquisition, higher mega-project activity and revenue synergies. Dollar utilization improved 100 basis points to 39.3%.Adjusted EBITDA increased 18.8% year over year to $487 million. The adjusted EBITDA margin contracted 50 basis points to 40.4%, primarily due to higher fuel and transportation costs.Equipment rental revenues increased 23.2% year over year to $1.07 billion. The business benefited from the expanded fleet, stronger volume on mega projects and cross-selling opportunities created by the H&E transaction. Sales of rental equipment rose 3.8% year over year to $110 million as Herc continued adjusting fleet mix to customer demand. Service and other revenues increased 11.1% year over year to $10 million, while sales of new equipment, parts and supplies fell 29.4% year over year to $12 million.Average fleet size increased 20.4% year over year, primarily reflecting the H&E acquisition. The fleet totaled approximately $9.6 billion at original equipment cost at the end of June, while its average age remained 46 months. Dollar utilization, which measures rental revenue relative to average fleet cost, rose to 39.3% from 38.3%. Compared with the prior-year pro forma figure, utilization improved 220 basis points as fleet efficiency strengthened and the mix shifted toward higher-return equipment. Fleet expenditures at original equipment cost totaled $451 million during the reported quarter.Direct operating expenses increased 29.6% y…Read full documentShow less
A month has gone by since the last earnings report for Herc Holdings (HRI). Shares have added about 9.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Herc Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Herc Holdings reported second-quarter 2026 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of 76 cents by 88.2%. However, earnings declined on a year-over-year basis. Revenues of $1.20 billion surpassed the consensus mark of $1.15 billion by 4.8% and increased 20.2% year over year. This year-over-year increase was owing to a 23% increase in equipment rental revenues resulting from the larger fleet size after the H&E acquisition, higher mega-project activity and revenue synergies. Dollar utilization improved 100 basis points to 39.3%.Adjusted EBITDA increased 18.8% year over year to $487 million. The adjusted EBITDA margin contracted 50 basis points to 40.4%, primarily due to higher fuel and transportation costs.Equipment rental revenues increased 23.2% year over year to $1.07 billion. The business benefited from the expanded fleet, stronger volume on mega projects and cross-selling opportunities created by the H&E transaction. Sales of rental equipment rose 3.8% year over year to $110 million as Herc continued adjusting fleet mix to customer demand. Service and other revenues increased 11.1% year over year to $10 million, while sales of new equipment, parts and supplies fell 29.4% year over year to $12 million.Average fleet size increased 20.4% year over year, primarily reflecting the H&E acquisition. The fleet totaled approximately $9.6 billion at original equipment cost at the end of June, while its average age remained 46 months. Dollar utilization, which measures rental revenue relative to average fleet cost, rose to 39.3% from 38.3%. Compared with the prior-year pro forma figure, utilization improved 220 basis points as fleet efficiency strengthened and the mix shifted toward higher-return equipment. Fleet expenditures at original equipment cost totaled $451 million during the reported quarter.Direct operating expenses increased 29.6% year over year to $491 million and represented 45.8% of equipment rental revenues (up from 43.6%). The increase reflected the acquired H&E operations, newer locations that require time to mature and higher transportation and fuel costs. Rental equipment depreciation rose 24.1% year over year to $242 million because of the larger fleet. Non-rental depreciation and amortization increased 66.7% year over year to $75 million, mainly due to acquired intangible assets and business expansion.Selling, general and administrative expenses increased 22% year over year to $155 million, but declined slightly as a percentage of equipment rental revenues to 14.5%. Interest expense climbed 46.5% year over year to $126 million, reflecting debt issued to finance the H&E acquisition.Herc Holdings exited the second quarter with cash and cash equivalents of $43 million, flat sequentially. Long-term debt was $7.88 billion compared with $7.95 billion at the prior-quarter end. First-half operating cash flow increased to $591 million from $412 million. Free cash flow nearly doubled to $202 million from $103 million despite higher investment in rental equipment.Herc Holdings increased its full-year equipment rental revenue guidance to $4.38-$4.48 billion from $4.28-$4.40 billion. The company now expects adjusted EBITDA of $2.05-$2.13 billion compared with its previous range of $2-$2.1 billion. Net rental equipment capital expenditures are projected to be between $850 million and $950 million, up from $500-$800 million. Gross capital expenditures are now expected to be between $1.25 billion and $1.4 billion (prior view: $800 million to $1.1 billion).Management expects incremental revenue synergies of $100-$120 million and incremental cost synergies of $90 million in 2026. The company targets fully realized annual cost synergies of $125 million by year-end. Full-year free cash flow is expected to range from $250 million to $350 million after strategic fleet investment. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 27.31% due to these changes. Currently, Herc Holdings has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Herc Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Herc Holdings is part of the Zacks Transportation - Equipment and Leasing industry. Over the past month, Westinghouse Air Brake Technologies (WAB), a stock from the same industry, has gained 3%. The company reported its results for the quarter ended June 2026 more than a month ago. Wabtec reported revenues of $3.18 billion in the last reported quarter, representing a year-over-year change of +17.5%. EPS of $2.76 for the same period compares with $2.27 a year ago. Wabtec is expected to post earnings of $2.69 per share for the current quarter, representing a year-over-year change of +16%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Wabtec. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Herc Holdings Inc. (HRI) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-19Herc Holdings Inc. Declares Regular Quarterly Dividend of $0.70 per Share
Business Wire
Herc Holdings Inc. Declares Regular Quarterly Dividend of $0.70 per Share
BONITA SPRINGS, Fla., August 19, 2026--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc. ("Herc Holdings," "Herc Rentals" or the "Company"), today announced that its Board of Directors has declared the Company’s quarterly dividend of $0.70 per share. The dividend is payable on September 16, 2026, to shareholders of record as of September 2, 2026. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 607 locations across North America and 2025 total revenues of approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 10,000 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn. All references to "Herc Holdings" or the "Company" in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations…Read full documentShow less
BONITA SPRINGS, Fla., August 19, 2026--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc. ("Herc Holdings," "Herc Rentals" or the "Company"), today announced that its Board of Directors has declared the Company’s quarterly dividend of $0.70 per share. The dividend is payable on September 16, 2026, to shareholders of record as of September 2, 2026. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 607 locations across North America and 2025 total revenues of approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 10,000 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn. All references to "Herc Holdings" or the "Company" in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to realize all the anticipated benefits of the acquisition of H&E Equipment Services, Inc.. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. View source version on businesswire.com: https://www.businesswire.com/news/home/20260819999424/en/ Contacts Leslie HunzikerSr. Vice PresidentInvestor Relations, Communications & [email protected] 239-301-1675
Investor releaseQuarter not tagged2026-07-29Herc Holdings Q2 Earnings Top Estimates on Rental Growth, 2026 View Up
Zacks
Herc Holdings Q2 Earnings Top Estimates on Rental Growth, 2026 View Up
Herc Holdings Inc. (HRI) reported second-quarter 2026 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of 76 cents by 88.2%. However, earnings declined on a year-over-year basis. Revenues of $1.20 billion surpassed the consensus mark of $1.15 billion by 4.8% and increased 20.2% year over year. This year-over-year increase was owing to a 23% increase in equipment rental revenues resulting from the larger fleet size after the H&E acquisition, higher mega-project activity and revenue synergies. Dollar utilization improved 100 basis points to 39.3%. Adjusted EBITDA increased 18.8% year over year to $487 million. The adjusted EBITDA margin contracted 50 basis points to 40.4%, primarily due to higher fuel and transportation costs. Herc Holdings Inc. price-consensus-eps-surprise-chart | Herc Holdings Inc. Quote Equipment rental revenues increased 23.2% year over year to $1.07 billion. The business benefited from the expanded fleet, stronger volume on mega projects and cross-selling opportunities created by the H&E transaction. Sales of rental equipment rose 3.8% year over year to $110 million as Herc continued adjusting fleet mix to customer demand. Service and other revenues increased 11.1% year over year to $10 million, while sales of new equipment, parts and supplies fell 29.4% year over year to $12 million. Average fleet size increased 20.4% year over year, primarily reflecting the H&E acquisition. The fleet totaled approximately $9.6 billion at original equipment cost at the end of June, while its average age remained 46 months. Dollar utilization, which measures rental revenue relative to average fleet cost, rose to 39.3% from 38.3%. Compared with the prior-year pro forma figure, utilization improved 220 basis points as fleet efficiency strengthened and the mix shifted toward higher-return equipment. Fleet expenditures at original equipment cost totaled $451 million during the reported quarter. Direct operating expenses increased 29.6% year over year to $491 million and represented 45.8% of equipment rental revenues (up from 43.6%). The increase reflected the acquired H&E operations, newer locations that require time to mature and higher transportation and fuel costs. Rental equipment depreciation rose 24.1% year over year to $242 million because of the larger fleet. Non-rental depreciation and amortization increased 66.7% year over…Read full documentShow less
Herc Holdings Inc. (HRI) reported second-quarter 2026 adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of 76 cents by 88.2%. However, earnings declined on a year-over-year basis. Revenues of $1.20 billion surpassed the consensus mark of $1.15 billion by 4.8% and increased 20.2% year over year. This year-over-year increase was owing to a 23% increase in equipment rental revenues resulting from the larger fleet size after the H&E acquisition, higher mega-project activity and revenue synergies. Dollar utilization improved 100 basis points to 39.3%. Adjusted EBITDA increased 18.8% year over year to $487 million. The adjusted EBITDA margin contracted 50 basis points to 40.4%, primarily due to higher fuel and transportation costs. Herc Holdings Inc. price-consensus-eps-surprise-chart | Herc Holdings Inc. Quote Equipment rental revenues increased 23.2% year over year to $1.07 billion. The business benefited from the expanded fleet, stronger volume on mega projects and cross-selling opportunities created by the H&E transaction. Sales of rental equipment rose 3.8% year over year to $110 million as Herc continued adjusting fleet mix to customer demand. Service and other revenues increased 11.1% year over year to $10 million, while sales of new equipment, parts and supplies fell 29.4% year over year to $12 million. Average fleet size increased 20.4% year over year, primarily reflecting the H&E acquisition. The fleet totaled approximately $9.6 billion at original equipment cost at the end of June, while its average age remained 46 months. Dollar utilization, which measures rental revenue relative to average fleet cost, rose to 39.3% from 38.3%. Compared with the prior-year pro forma figure, utilization improved 220 basis points as fleet efficiency strengthened and the mix shifted toward higher-return equipment. Fleet expenditures at original equipment cost totaled $451 million during the reported quarter. Direct operating expenses increased 29.6% year over year to $491 million and represented 45.8% of equipment rental revenues (up from 43.6%). The increase reflected the acquired H&E operations, newer locations that require time to mature and higher transportation and fuel costs. Rental equipment depreciation rose 24.1% year over year to $242 million because of the larger fleet. Non-rental depreciation and amortization increased 66.7% year over year to $75 million, mainly due to acquired intangible assets and business expansion. Selling, general and administrative expenses increased 22% year over year to $155 million, but declined slightly as a percentage of equipment rental revenues to 14.5%. Interest expense climbed 46.5% year over year to $126 million, reflecting debt issued to finance the H&E acquisition.Top of Form Herc Holdings exited the second quarter with cash and cash equivalents of $43 million, flat sequentially. Long-term debt was $7.88 billion compared with $7.95 billion at the prior-quarter end. First-half operating cash flow increased to $591 million from $412 million. Free cash flow nearly doubled to $202 million from $103 million despite higher investment in rental equipment. The company paid a quarterly dividend of 70 cents per share on June 12. Herc Holdings increased its full-year equipment rental revenue guidance to $4.38-$4.48 billion from $4.28-$4.40 billion. The company now expects adjusted EBITDA of $2.05-$2.13 billion compared with its previous range of $2-$2.1 billion. Net rental equipment capital expenditures are projected to be between $850 million and $950 million, up from $500-$800 million. Gross capital expenditures are now expected to be between $1.25 billion and $1.4 billion (prior view: $800 million to $1.1 billion). Management expects incremental revenue synergies of $100-$120 million and incremental cost synergies of $90 million in 2026. The company targets fully realized annual cost synergies of $125 million by year-end. Full-year free cash flow is expected to range from $250 million to $350 million after strategic fleet investment. Currently, Herc Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL)reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Herc Holdings Inc. (HRI) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-28Herc Holdings (HRI) Q2 Earnings and Revenues Surpass Estimates
Zacks
Herc Holdings (HRI) Q2 Earnings and Revenues Surpass Estimates
Herc Holdings (HRI) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +88.16%. A quarter ago, it was expected that this equipment rental supplier would post a loss of $1.02 per share when it actually produced earnings of $0.21, delivering a surprise of +120.59%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Herc Holdings, which belongs to the Zacks Transportation - Equipment and Leasing industry, posted revenues of $1.2 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.80%. This compares to year-ago revenues of $984 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Herc Holdings shares have added about 7.8% since the beginning of the year versus the S&P 500's gain of 8.3%. While Herc Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Herc Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete lis…Read full documentShow less
Herc Holdings (HRI) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +88.16%. A quarter ago, it was expected that this equipment rental supplier would post a loss of $1.02 per share when it actually produced earnings of $0.21, delivering a surprise of +120.59%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Herc Holdings, which belongs to the Zacks Transportation - Equipment and Leasing industry, posted revenues of $1.2 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.80%. This compares to year-ago revenues of $984 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Herc Holdings shares have added about 7.8% since the beginning of the year versus the S&P 500's gain of 8.3%. While Herc Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Herc Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.55 on $1.29 billion in revenues for the coming quarter and $5.30 on $4.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Equipment and Leasing is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Localiza Rent A Car SA - Sponsored ADR (LZRFY), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +666.7%. The consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level. Localiza Rent A Car SA - Sponsored ADR's revenues are expected to be $2.37 billion, up 35.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Herc Holdings Inc. (HRI) : Free Stock Analysis Report Localiza Rent A Car SA - Sponsored ADR (LZRFY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-28Herc Holdings: Q2 Earnings Snapshot
Associated Press
Herc Holdings: Q2 Earnings Snapshot
BONITA SPRINGS, Fla. (AP) — BONITA SPRINGS, Fla. (AP) — Herc Holdings Inc. (HRI) on Tuesday reported second-quarter net income of $19 million. The Bonita Springs, Florida-based company said it had profit of 57 cents per share. Earnings, adjusted for one-time gains and costs, were $1.43 per share. The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 76 cents per share. The equipment rental supplier posted revenue of $1.2 billion in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HRI at https://www.zacks.com/ap/HRI
Investor releaseQuarter not tagged2026-07-28Herc Q2 Earnings Call Highlights
MarketBeat
Herc Q2 Earnings Call Highlights
Interested in Herc Holdings Inc.? Here are five stocks we like better. Herc raised its full-year outlook after second-quarter momentum improved following completion of the H&E integration. Pro forma equipment rental revenue grew 2%, supported by higher utilization, fleet optimization and stronger national-account and mega-project demand. Second-quarter reported revenue increased 20% and adjusted EBITDA rose 19%, but fuel and transportation inflation reduced adjusted EBITDA margin by about 150 basis points. Excluding that pressure, margins improved year over year due to operating gains and cost synergies. Herc is increasing fleet investment to serve energy, data-center and manufacturing projects, targeting about $900 million in 2026 net fleet capital expenditures. The higher spending led the company to lower free-cash-flow guidance to $250 million-$350 million while maintaining its revenue and synergy targets. Markets Are Loving These Stocks 'Firing On All Cylinders' Herc (NYSE:HRI) said second-quarter operating momentum improved following the completion of its H&E integration in the first quarter, with pro forma equipment rental revenue returning to growth earlier than management had expected. The company raised its full-year outlook as national-account demand and mega-project activity accelerated, while acknowledging that fuel and transportation inflation pressured margins. Chief Executive Officer Larry Silber said the company’s focus shifted to execution after completing the H&E integration. On a pro forma basis, equipment rental revenue rose 2% during the quarter despite a smaller average fleet at original equipment cost than a year earlier. Management attributed the improvement to fleet optimization, higher utilization and growing cross-selling opportunities across the combined platform. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “The revenue inflection we expected is now underway,” Chief Financial Officer Mark Humphrey said. “Demand is stronger than our original plan, and we are investing to capture that opportunity while continuing to manage fleet efficiency, costs, and capital with discipline.” On a reported basis, equipment rental revenue increased about 23% year over year, while total revenue grew 20%, primarily reflecting the H&E acquisition, which had been included for only one month in the prior-year period.…Read full documentShow less
Interested in Herc Holdings Inc.? Here are five stocks we like better. Herc raised its full-year outlook after second-quarter momentum improved following completion of the H&E integration. Pro forma equipment rental revenue grew 2%, supported by higher utilization, fleet optimization and stronger national-account and mega-project demand. Second-quarter reported revenue increased 20% and adjusted EBITDA rose 19%, but fuel and transportation inflation reduced adjusted EBITDA margin by about 150 basis points. Excluding that pressure, margins improved year over year due to operating gains and cost synergies. Herc is increasing fleet investment to serve energy, data-center and manufacturing projects, targeting about $900 million in 2026 net fleet capital expenditures. The higher spending led the company to lower free-cash-flow guidance to $250 million-$350 million while maintaining its revenue and synergy targets. Markets Are Loving These Stocks 'Firing On All Cylinders' Herc (NYSE:HRI) said second-quarter operating momentum improved following the completion of its H&E integration in the first quarter, with pro forma equipment rental revenue returning to growth earlier than management had expected. The company raised its full-year outlook as national-account demand and mega-project activity accelerated, while acknowledging that fuel and transportation inflation pressured margins. Chief Executive Officer Larry Silber said the company’s focus shifted to execution after completing the H&E integration. On a pro forma basis, equipment rental revenue rose 2% during the quarter despite a smaller average fleet at original equipment cost than a year earlier. Management attributed the improvement to fleet optimization, higher utilization and growing cross-selling opportunities across the combined platform. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “The revenue inflection we expected is now underway,” Chief Financial Officer Mark Humphrey said. “Demand is stronger than our original plan, and we are investing to capture that opportunity while continuing to manage fleet efficiency, costs, and capital with discipline.” On a reported basis, equipment rental revenue increased about 23% year over year, while total revenue grew 20%, primarily reflecting the H&E acquisition, which had been included for only one month in the prior-year period. Adjusted EBITDA rose 19%, and adjusted EBITDA margin was 40.4%. REBITDA, which excludes equipment and parts sales, increased about 18%, with a 41.4% margin. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Adjusted net income was $48 million, or $1.43 per diluted share. The figure included $4 million of restructuring and transformation costs, including initial costs tied to a logistics transformation initiative. Humphrey said fuel and freight inflation was the largest source of year-over-year pressure on profitability. Fuel and transportation costs increased approximately 35% from the first quarter and reduced adjusted EBITDA margin by about 150 basis points and adjusted REBITDA margin by 170 basis points in the second quarter. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Excluding fuel inflation, the company said adjusted EBITDA margin increased 90 basis points year over year and adjusted REBITDA margin improved 50 basis points, supported by operating performance and cost synergies. Management expects fuel and transportation inflation to remain a headwind in the second half. The company’s outlook assumes a quarterly expense impact broadly consistent with the second quarter, producing about one percentage point of year-over-year adjusted EBITDA margin pressure for full-year 2026. President Aaron Birnbaum said Herc generated 2% pro forma equipment rental revenue growth on roughly 3% less average fleet at original equipment cost. Pro forma dollar utilization rose by more than 200 basis points from the prior year, which management described as evidence that the combined fleet and revenue mix are becoming more productive. During the second quarter, Herc added roughly $450 million of its planned 2026 fleet purchases. First-half fleet additions totaled $634 million at original equipment cost. The company also disposed of $247 million of fleet at original equipment cost during the quarter, generating proceeds of approximately 46%. The company is increasing fleet investment in response to demand from large, multi-year projects, particularly in energy, data centers and manufacturing. Management said the increased spending is demand-driven rather than speculative, with about 70% of incremental fleet purchases expected to be specialty equipment. Herc expects much of that equipment to go directly to projects. Herc raised its target share of the U.S. mega-project rental opportunity to a long-term range of 15% to 20%, from its earlier 10% to 15% range. Birnbaum said the company does not expect to reach a 20% share in 2026 or 2027, but sees its competitive position strengthening over the next several years due to greater fleet capacity, branch density and technology capabilities. Management cited Dodge projections for more than $800 billion in U.S. mega-project starts during 2026. Birnbaum noted that construction value does not directly equate to rental spending, saying historically about 2% converts to equipment rental, depending on project type. Revenue from such projects is also spread over typical durations of three to five years or more. At the midpoint of updated guidance, Herc expects full-year equipment rental revenue of $4.425 billion and adjusted EBITDA of approximately $2.09 billion. The outlook assumes roughly $900 million of net fleet capital expenditures. On a pro forma basis, the midpoint implies nearly 5% equipment rental revenue growth on flat average fleet at original equipment cost. Free cash flow guidance was reduced to a range of $250 million to $350 million as the company increases fleet spending. Herc generated $202 million of free cash flow in the first half, ended the quarter with $2.1 billion in liquidity and reported net leverage of 3.95 times. The company also paid its regular quarterly dividend of $0.70 per share. Herc maintained its 2026 incremental revenue synergy target of $100 million to $120 million and said it remains on track to achieve an additional $90 million in cost synergies this year, toward a fully realized $125 million target by year-end. Humphrey said revenue synergies were expected to be more weighted toward the second half, while about 55% of the incremental cost-synergy contribution is expected in the back half. Specialty revenue grew at a double-digit rate in the quarter, according to Silber. Management said it aims over the longer term for specialty operations to represent 20% to 30% of the business after the H&E acquisition reduced that mix to the mid-teens. The company said approximately 50 specialty locations opened in the fourth quarter and first quarter are performing well, though management expects about two years for their EBITDA margins to mature to levels comparable with established locations. Herc also continues to invest in its ProControl platform, which uses artificial intelligence and telematics to help customers manage equipment fleets. Active external ProControl users increased nearly 20% quarter over quarter, while the second quarter was the company’s highest revenue-generating e-commerce period to date. Finally, management said its logistics transformation initiative, which began in late 2025 and expanded this year, is intended to improve routing, cost recovery, process discipline and delivery execution across the larger network. Birnbaum described the effort as a multiyear program separate from acquisition cost synergies. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Herc Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.
Investor releaseQuarter not tagged2026-07-28Herc Holdings Reports Second Quarter 2026 Results and Increases 2026 Full Year Guidance
Business Wire
Herc Holdings Reports Second Quarter 2026 Results and Increases 2026 Full Year Guidance
Second Quarter 2026 Highlights– Equipment rental revenue of $1,072 million increased 23%– Total revenues of $1,204 million increased 20%– Net income of $19 million, or $0.57 per diluted share, and adjusted net income of $48 million, or $1.43 per diluted share– Adjusted EBITDA of $487 million increased 19% with adjusted EBITDA margin flat at 40%– Free cash flow for the first half of 2026 of $202 million nearly doubled compared to $103 million in the prior year BONITA SPRINGS, Fla., July 28, 2026--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2026. "After successfully completing the H&E integration in the first quarter, the second quarter marked an important turning point for Herc Rentals, with our key metrics improving on a combined, comparable basis, both sequentially and year-over-year," said Larry Silber, chief executive officer. "Revenue synergies and cost synergies are tracking to plan. And while fuel inflation was a macroeconomic headwind in the quarter, we are taking additional actions to mitigate its impact. Importantly, disciplined fleet management drove positive fleet efficiency, supported by increased rental activity. "Our growth continues to be led by national accounts, fueled by robust mega project activity and a higher mix of specialty equipment rentals," said Silber. "The H&E acquisition was well-timed, adding the scale, fleet capacity, talent and branch density to expand our role on large, complex projects and capture a greater share of this accelerating demand. "The momentum across multi-year projects gives us strong line of sight into the second half of the year. To support this expanding pipeline, we are raising our full-year financial guidance and increasing net fleet capital expenditures to serve customer demand," Silber added. "Team Herc’s hard work positions us to capitalize on these high-growth opportunities, strengthen customer relationships and continue delivering value for shareholders." 2026 Second Quarter Financial Results Total revenues increased 20% to $1,204 million compared to $1,002 million in the prior-year period. This year-over-year increase was driven by a 23% increase in equipment rental revenue resulting from the larger fleet size after the H&E acquisition, an increase in volume on mega projects and revenue synergies. Sa…Read full documentShow less
Second Quarter 2026 Highlights– Equipment rental revenue of $1,072 million increased 23%– Total revenues of $1,204 million increased 20%– Net income of $19 million, or $0.57 per diluted share, and adjusted net income of $48 million, or $1.43 per diluted share– Adjusted EBITDA of $487 million increased 19% with adjusted EBITDA margin flat at 40%– Free cash flow for the first half of 2026 of $202 million nearly doubled compared to $103 million in the prior year BONITA SPRINGS, Fla., July 28, 2026--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2026. "After successfully completing the H&E integration in the first quarter, the second quarter marked an important turning point for Herc Rentals, with our key metrics improving on a combined, comparable basis, both sequentially and year-over-year," said Larry Silber, chief executive officer. "Revenue synergies and cost synergies are tracking to plan. And while fuel inflation was a macroeconomic headwind in the quarter, we are taking additional actions to mitigate its impact. Importantly, disciplined fleet management drove positive fleet efficiency, supported by increased rental activity. "Our growth continues to be led by national accounts, fueled by robust mega project activity and a higher mix of specialty equipment rentals," said Silber. "The H&E acquisition was well-timed, adding the scale, fleet capacity, talent and branch density to expand our role on large, complex projects and capture a greater share of this accelerating demand. "The momentum across multi-year projects gives us strong line of sight into the second half of the year. To support this expanding pipeline, we are raising our full-year financial guidance and increasing net fleet capital expenditures to serve customer demand," Silber added. "Team Herc’s hard work positions us to capitalize on these high-growth opportunities, strengthen customer relationships and continue delivering value for shareholders." 2026 Second Quarter Financial Results Total revenues increased 20% to $1,204 million compared to $1,002 million in the prior-year period. This year-over-year increase was driven by a 23% increase in equipment rental revenue resulting from the larger fleet size after the H&E acquisition, an increase in volume on mega projects and revenue synergies. Sales of rental equipment increased by $4 million during the period to continue to align mix to customer demand. Dollar utilization was 39.3% in the second quarter up from 38.3% in the prior-year period, due to the increase in fleet efficiency and a favorable shift in mix to higher-return fleet on rent year-over-year. Direct operating expenses were $491 million, or 45.8% of equipment rental revenue, compared to $379 million, or 43.6%, in the prior-year period. Operating expenses as a percent of equipment rental revenue were elevated during the period primarily related to the impact of the H&E acquisition and related greenfields that take more time to mature, as well as increased transportation and fuel expenses as a result of macroeconomic headwinds. Depreciation of rental equipment increased 24% to $242 million due to higher year-over-year average fleet size primarily as a result of the H&E acquisition. Non-rental depreciation and amortization increased 67% to $75 million primarily due to amortization of acquisition intangibles, particularly the H&E customer relationship intangible asset, and an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $155 million, or 14.5% of equipment rental revenue, compared to $127 million, or 14.6%, in the prior-year period. Interest expense was $126 million compared with $86 million in the prior-year period, reflecting the new debt issued in June 2025 to fund the H&E acquisition. Net income was $19 million, or $0.57 per diluted share, compared to $35 million net loss, or $1.17 loss per diluted share, in the prior-year period. Adjusted net income was $48 million, or $1.43 per diluted share, compared to $59 million, or $1.97 per diluted share, in the prior-year period. Adjusted EBITDA increased 19% to $487 million compared to $410 million in the prior-year period. Adjusted EBITDA margin was 40.4% compared to 40.9% in the prior year period primarily impacted by the inflation in fuel year-over-year. First Half 2026 Financial Results Total revenues increased 26% to $2,343 million compared to $1,863 million in the prior-year period. This year-over-year increase was driven by a 28% increase in equipment rental revenue resulting from the larger fleet size after the H&E acquisition, an increase in volume on mega projects and revenue synergies. Sales of rental equipment increased by $37 million during the period to continue to align mix to customer demand. Dollar utilization was nearly flat at 37.9% compared to 38.0% in the prior-year period due to the increase in fleet efficiency and the favorable shift in mix to higher-return fleet on rent year-over-year which accelerated throughout the second quarter. Direct operating expenses were $944 million, or 46.0% of equipment rental revenue compared to $706 million, or 43.9%, in the prior-year period. Operating expenses as a percent of equipment rental revenue were elevated during the period primarily related to the impact of the H&E acquisition and related greenfields that take more time to mature, as well as increased transportation and fuel expenses as a result of macroeconomic headwinds. Depreciation of rental equipment increased 32% to $484 million due to higher year-over-year average fleet size primarily as a result of the H&E acquisition. Non-rental depreciation and amortization increased 90% to $148 million primarily due to amortization of acquisition intangibles, particularly the H&E customer relationship intangible asset, and an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $301 million, or 14.7% of equipment rental revenue, compared to $245 million, or 15.2%, in the prior-year period. The decrease as a percent of equipment rental revenue primarily was related to continued focus on improving operating leverage, including acquisition cost synergies, while expanding revenues. Interest expense was $254 million compared with $148 million in the prior-year period, reflecting the new debt issued in June 2025 to fund the H&E acquisition. Net loss was $5 million, or $0.15 loss per diluted share, compared to $53 million net loss, or $1.82 loss per diluted share, in the prior-year period. Adjusted net income was $55 million, or $1.64 per diluted share, compared to $96 million, or $3.28 per diluted share, in the prior-year period. Adjusted EBITDA increased 25% to $935 million compared to $748 million in the prior-year period Adjusted EBITDA margin was 39.9% compared to 40.2% in the prior year period primarily impacted by the inflation in fuel year-over-year. Rental Fleet Net rental equipment capital expenditures were as follows (in millions): As of June 30, 2026, the Company's total fleet was approximately $9.6 billion at OEC. Average fleet at OEC in the second quarter increased 20% compared to the prior-year period. Average fleet age was 46 months as of June 30, 2026, unchanged from the comparable prior-year period. Disciplined Capital Management The Company opened 3 previously planned greenfield locations in the first half of 2026. Net debt was $7.9 billion as of June 30, 2026, with net leverage of 3.95x1 compared to $8.3 billion and 3.76x1 in the same prior-year period. The increase in leverage resulted from the full impact of the H&E acquisition dis-synergies in the most recent trailing twelve month period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately $2.1 billion of liquidity as of June 30, 2026. The Company declared its quarterly dividend of $0.70 and paid to shareholders of record as of May 29, 2026, on June 12, 2026. 2026 Outlook The Company is increasing its full year 2026 equipment rental revenue, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges. As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2026, investing in its fleet, optimizing its existing fleet, capitalizing on recent acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio. Earnings Call and Webcast Information Herc Holdings' second quarter 2026 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at https://registrations.events/directory/international/itfs.html, using the access code: 8821418. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company. Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com. The press release and presentation slides for the call will be posted to this section of the website prior to the call. A replay of the conference call will be available via webcast on the Company website at IR.HercRentals.com, where it will be archived for 12 months after the call. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 607 locations across North America and 2025 total revenues were approximately $4.4 billion. We offer products, services and technologies aimed at helping customers work more efficiently, effectively and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, and compaction. Our Herc Rentals ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shoring equipment as well as our Herc Rentals ProContractor® professional grade tools. Our ProControl by Herc Rentals™ digital platform combines a seamless e-commerce experience with integrated project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations. We employ approximately 10,000 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn. All references to "Herc Holdings" or the "Company" in this press release refer to Herc Holdings Inc. and its subsidiaries, unless otherwise indicated. Certain Additional Information In this release we refer to the following operating measures: Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA). OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; (10) our significant indebtedness; and (11) our ability to realize all the anticipated benefits of the acquisition of H&E Equipment Services, Inc. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Information Regarding Non-GAAP Financial Measures In addition to results calculated according to accounting principles generally accepted in the United States ("GAAP"), the Company has provided certain information in this release that is not calculated according to GAAP ("non-GAAP"), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share and free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release. A-1 A-2 A-3 HERC HOLDINGS INC. AND SUBSIDIARIESSUPPLEMENTAL SCHEDULESEBITDA AND ADJUSTED EBITDA RECONCILIATIONSUnaudited(In millions) EBITDA and adjusted EBITDA–EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction expenses, restructuring and transformation initiative costs, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business, impact of the fair value mark-up of acquired fleet, impact of the studio entertainment business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments. Adjusted EBITDA Margin–Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio. A-4 HERC HOLDINGS INC. AND SUBSIDIARIESSUPPLEMENTAL SCHEDULESADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHAREUnaudited(In millions) Adjusted Net Income and Adjusted Earnings per Diluted Share–Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and transformation initiative costs, spin-off costs, loss on extinguishment of debt, impairment charges, gain (loss) on the disposal of a business, merger related intangible asset amortization, impact on depreciation of acquired fleet, impact of the fair value mark-up of acquired fleet, income (loss) of the studio entertainment business, and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by weighted average diluted shares outstanding. Adjusted Net Income and Adjusted Earnings per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, and provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. A-5 HERC HOLDINGS INC. AND SUBSIDIARIESSUPPLEMENTAL SCHEDULESFREE CASH FLOWUnaudited(In millions) Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures. A-6 View source version on businesswire.com: https://www.businesswire.com/news/home/20260728592680/en/ Contacts Leslie HunzikerSenior Vice President,Investor Relations, Communications & [email protected] 239-301-1675
Investor releaseQuarter not tagged2026-07-28Herc Q2 Adjusted Earnings Decline, Revenue Increases
MT Newswires
Herc Q2 Adjusted Earnings Decline, Revenue Increases
Herc (HRI) reported Q2 adjusted earnings Tuesday of $1.43 per diluted share, down from $1.97 a year
Investor releaseQuarter not tagged2026-07-28Herc Holdings Inc (HRI) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amidst ...
GuruFocus.com
Herc Holdings Inc (HRI) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amidst ...
This article first appeared on GuruFocus. Equipment Rental Revenue: Increased approximately 23% year over year. Total Revenues: Grew 20%, primarily driven by the acquisition of H&E. Adjusted EBITDA: Increased 19%, with a margin of 40.4%. REBITDA Margin: 41.4%, excluding equipment and parts sales. Adjusted Net Income: $48 million or $1.43 per diluted share. Pro Forma Equipment Rental Revenue: Increased despite a reduction in average fleet at OEC. Pro Forma Dollar Utilization: Increased more than 200 basis points over last year. Free Cash Flow: Generated $202 million for the first half. Liquidity: Ended the quarter with $2.1 billion. Net Leverage: 3.95x. Quarterly Dividend: $0.70 per share. Full Year Equipment Rental Revenue Guidance: $4.425 billion at the midpoint. Net Fleet CapEx: Roughly $900 million. Adjusted EBITDA Guidance: Projected to be approximately $2.09 billion at the midpoint. Free Cash Flow Guidance: Expected to be between $250 million to $350 million for the year. Warning! GuruFocus has detected 10 Warning Signs with HRI. Is HRI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Herc Holdings Inc (NYSE:HRI) reported a 2% increase in pro forma equipment rental revenue, marking a return to growth earlier than expected. The company successfully completed the integration of the H&E acquisition, leading to improved fleet efficiency and revenue cross-selling synergies. Specialty revenues increased by double digits, with significant investments in specialty fleet to support mega projects. Herc Holdings Inc (NYSE:HRI) raised its full-year guidance due to accelerating customer demand and operating momentum. The company's digital capabilities, particularly the ProControl platform, have seen a 20% increase in active external users, enhancing customer engagement and e-commerce revenue. Fuel inflation posed a significant macroeconomic headwind, impacting margins, particularly in April. The overall demand environment remains bifurcated, with some local markets experiencing weakness due to interest rate-sensitive sectors. Pro forma adjusted EBITDA margin decreased by approximately 60 basis points due to fuel and transportation inflation. The company anticipates continued cost pressures from fuel and transportation inflatio…Read full documentShow less
This article first appeared on GuruFocus. Equipment Rental Revenue: Increased approximately 23% year over year. Total Revenues: Grew 20%, primarily driven by the acquisition of H&E. Adjusted EBITDA: Increased 19%, with a margin of 40.4%. REBITDA Margin: 41.4%, excluding equipment and parts sales. Adjusted Net Income: $48 million or $1.43 per diluted share. Pro Forma Equipment Rental Revenue: Increased despite a reduction in average fleet at OEC. Pro Forma Dollar Utilization: Increased more than 200 basis points over last year. Free Cash Flow: Generated $202 million for the first half. Liquidity: Ended the quarter with $2.1 billion. Net Leverage: 3.95x. Quarterly Dividend: $0.70 per share. Full Year Equipment Rental Revenue Guidance: $4.425 billion at the midpoint. Net Fleet CapEx: Roughly $900 million. Adjusted EBITDA Guidance: Projected to be approximately $2.09 billion at the midpoint. Free Cash Flow Guidance: Expected to be between $250 million to $350 million for the year. Warning! GuruFocus has detected 10 Warning Signs with HRI. Is HRI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Herc Holdings Inc (NYSE:HRI) reported a 2% increase in pro forma equipment rental revenue, marking a return to growth earlier than expected. The company successfully completed the integration of the H&E acquisition, leading to improved fleet efficiency and revenue cross-selling synergies. Specialty revenues increased by double digits, with significant investments in specialty fleet to support mega projects. Herc Holdings Inc (NYSE:HRI) raised its full-year guidance due to accelerating customer demand and operating momentum. The company's digital capabilities, particularly the ProControl platform, have seen a 20% increase in active external users, enhancing customer engagement and e-commerce revenue. Fuel inflation posed a significant macroeconomic headwind, impacting margins, particularly in April. The overall demand environment remains bifurcated, with some local markets experiencing weakness due to interest rate-sensitive sectors. Pro forma adjusted EBITDA margin decreased by approximately 60 basis points due to fuel and transportation inflation. The company anticipates continued cost pressures from fuel and transportation inflation, impacting adjusted EBITDA margin by about 1% for the full year. Free cash flow expectations have been adjusted downward due to increased fleet investment, impacting short-term leverage reduction goals. Q: Can you discuss the pricing environment and how it has evolved over the quarter? A: Lawrence Silber, CEO: The pricing environment remains rational and constructive, with healthy supply and demand dynamics. We have been focusing on pushing prices as part of our strategy, and the dollar utilization improvement was largely due to self-help measures and healthier fleet conditions. Q: What are the biggest margin opportunities moving forward, and how does the mega project opportunity affect your strategy? A: Aaron Birnbaum, President: Our margin opportunities lie in moving our specialty mix back to 20-30% of our business, improving logistics, and enhancing sales force efficiency. The mega project opportunity allows us to be a primary or strong secondary player, thanks to our increased scale and capabilities. Q: Regarding the CapEx guidance increase, is this driven by demand or a strategic shift towards specialty? A: Lawrence Silber, CEO: The increased fleet investment is demand-driven, primarily from mega projects and specialty. This is not speculative but based on strong demand signals, and it aligns with our strategy to support growth in these areas. Q: How are you addressing fuel and transportation cost inflation, and what is the expected impact? A: Lawrence Silber, CEO: We view the 170 basis points impact as transitory, with about half of it not recoverable. We are working on passing on costs to customers where possible and expect similar levels of impact in Q3 and Q4. Q: What is the progress on the synergy capture targets from the H&E acquisition? A: Mark Humphrey, CFO: Revenue synergies are more heavily weighted to the back half of the year, while cost synergies are ramping up steadily. We expect about 55% of the incremental cost synergies to be realized in the second half. For the complete transcript of the earnings call, please refer to the full earnings call transcript.
TranscriptFY2026 Q22026-07-28FY2026 Q2 earnings call transcript
Earnings source - 99 paragraphs
FY2026 Q2 earnings call transcript
Thank you for standing by. My name is Kate and I'll be your conference operator today. At this time, I would like to welcome everyone to the Herc Holdings Inc.'s Q2 2026 earnings call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Leslie Hunziker, Head of Investor Relations. Please go ahead.
Thank you operator, and good morning everyone. Today we're reviewing our Q2 2026 results with comments on operations and our financials, including our view of the industry and our strategic outlook. The prepared remarks will be followed by Q&A. Let me remind you that today's call will include forward-looking statements. These statements are based on the environment as we see it today and are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the press release, our Form 10-Q, and our most recent annual report on Form 10-K, as well as other filings with the SEC. In addition, we'll be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance.
Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the conference call material. Finally, please mark your calendars to join our Q3 management meetings at Morgan Stanley's 14th Annual Laguna Conference in California on September 16th. This morning, I'm joined by Larry Silber, Chief Executive Officer, Aaron Birnbaum, President, and Mark Humphrey, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Larry.
Thank you, Leslie, and good morning everyone. With the H&E integration successfully completed in the Q1, our entire focus in the Q2 shifted to execution. As we've discussed, the H1 of 2026 was about converting our larger optimized platform into stronger utilization and revenue growth as we move through the seasonal ramp. I'm incredibly proud of how Team Herc is performing. In the Q2, we reached an important post-acquisition turning point as pro forma equipment rental revenue returned to growth, increasing 2% overall. Importantly, that return to growth happened earlier than we expected within the quarter, which gives us momentum and confidence heading into the H2. Alongside revenue growth, disciplined fleet management drove positive fleet efficiency as we continued to align the combined fleet.
We are also progressively capturing more of the value of this acquisition as revenue cross-selling synergies build and cost synergies track the plan. That operating momentum, combined with accelerating customer demand, gives us confidence to raise our full-year guidance today. Of course, the quarter was not without its challenges. Fuel inflation was a macroeconomic headwind that pressured margins, most notably in April, though margins improved as volume built through the quarter. Mark will take you through those details. Turning to slide five. We continue to follow our playbook, executing against our long-term growth strategies. First, we are growing the core. Today, our top-line growth continues to be led by national accounts, fueled by robust mega-project activity. The H&E acquisition was well-timed, adding scale, fleet capacity, talent, and branch density to expand our role on large, complex projects and capture a greater share of this increasing demand.
Second, we're expanding specialty. Specialty revenues were up double digits in the quarter, and we continue to disproportionately invest in specialty fleet to support mega-projects, our new specialty branches, and the cross-selling opportunities across our combined customer base. Third, we're elevating technology. As an industry leader, our digital capabilities remain a true differentiator. We continue to invest heavily in our proprietary ProControl platform, utilizing AI and advanced telematics to give customers the insights they need to track, measure, and manage their fleet for a safer, more efficient job site. Engagement is building quickly. Active external users on ProControl grew nearly 20% quarter-to-quarter as more of our combined customer base puts these tools to work. At the same time, our e-commerce channels provide 24/7 flexibility for customers who know exactly what they need.
The platform is a seamless way to transact and secure equipment on their schedule, always backed by the expert support of our sales and branch teams. That convenience is clearly resonating, as Q2 was our highest revenue-generating e-commerce quarter to date. Finally, we're investing responsibly in fleet to support highly visible customer demand while maintaining capital discipline and managing our balance sheet for the long term. Now moving to slide six. Our ability to execute at this level is a direct result of our people and our culture. Integrating a large, complex acquisition while simultaneously pivoting back to growth in an uneven demand environment requires an exceptional organization. We have built a culture grounded in collaboration, standardized processes, comprehensive training, and industry-leading technology to execute consistently across our expanded network. The absolute foundation of that culture is safety.
It is the non-negotiable starting point of everything we do. By equipping our teams with the right training and safe, well-maintained gear, we ensure they can perform at their best while delivering the superior, reliable service our customers expect. Team Herc's dedication to operating safely and efficiently is what makes our growth possible. Now, before we discuss the financial outlook, let me turn it over to Aaron to talk about our operational performance and initiatives. Aaron?
Thanks, good morning, everyone. I 100% agree with Larry's comments on the strength of our culture. It was the dedication, discipline, and collaboration of our team that allowed us to integrate the H&E acquisition so efficiently. With that heavy lifting behind us, we have fully pivoted to execution. Our sales force is aligned and fully engaged. Our operating model is standardized across the network. Today, we are actively leveraging our expanded geographic footprint and beginning to capture the efficiencies of scale and the synergy opportunities that made this combination so compelling. Turning to slide eight, optimizing our fleet was a critical integration initiative, getting the right equipment into the right markets with the right mix. Optimization isn't a one-time event. It requires continuous active management to stay ahead of evolving demand trends. This is where Herc excels.
We are experienced, disciplined fleet managers, it showed in the quarter as we brought the combined company back to positive fleet efficiency, where revenue growth outpaces fleet growth. By keeping our focus squarely on improving utilization, we generated 2% higher pro forma equipment rental revenue on approximately 3% less average fleet at OEC compared to last year. That improved efficiency is exactly what positions us to grow. With the fleet now tightly aligned to demand and utilization moving higher, we have the operating discipline in place to invest in the accelerating opportunity we are seeing. As seasonal volume ramped up in the quarter, we onboarded roughly $450 million of our 2026 fleet buy. Through the H1 of the year, we added $634 million of fleet at original equipment cost.
A portion of that spend supports the revenue synergy target we set for this year, while another portion supports the planned mega-project growth embedded in our original fleet plan. Today, however, our pipeline and on-rent activity on large multi-year projects are tracking ahead of our assumptions. External data also continues to point to increased mega-project starts this year. We are stepping up fleet investment where we have high conviction in the rising demand and where our larger scale is enabling us to expand our role with major contractors and grow share of wallet. Mark will walk you through the revised capital investment plan in just a minute. Even as we increase fleet investment, we remain highly disciplined with life cycle management. In the quarter, we disposed of $247 million of fleet at OEC, generating healthy proceeds of approximately 46%.
You'll see that our full-year disposals step up from our original plan. That's intentional. As demand acceleration is coming from mega-projects especially, we are fine-tuning the fleet mix for today's environment. Recycling that capital at healthy recovery rates helps fund the higher demand fleet and keeps us capital efficient. On slide nine, despite the stronger rental activity we're seeing, the overall demand environment remains bifurcated. Local market activity is stable in general, though the dynamics vary. While some markets are feeling the brunt of the weakness in the interest rate sensitive commercial sector, others are experiencing growth driven by infrastructure, education, healthcare, and MRO. Certain local markets are also benefiting from the secondary demand generated by nearby mega-projects. That said, national accounts are where we continue to see the strongest growth, driven by increasing activity across energy, data center, and manufacturing projects.
The H&E acquisition significantly increased our bandwidth to serve this national market. Legacy Herc was already a strong mega-project participant. What's changed is our ability to take on more of these opportunities and expand our role with major contractors because we now have more fleet capacity, more branch density, and a larger operating platform. As such, we have increased our target share of the total U.S. mega-project opportunity from 15%-20%. In today's uneven environment, diversification across geographies, project types, and customer accounts is what drives our resiliency and gives us a distinct competitive advantage. You can see the breadth of that diversification on slide 10. This is where our diversification becomes more tangible. We serve contractors, industrial accounts, infrastructure and government agencies, commercial facilities, and event-driven customers, and each of those groups has different demand trends, project requirements, and service expectations. That's why sector expertise matters.
Our sales teams understand the language of their customers, the nuances of their projects, and the equipment and service requirements that matter most in each vertical. Whether it's a data center, a healthcare project, a utility job, or a pharmaceutical manufacturing plant, we can bring the right solution to the table. Now with a larger platform, broader fleet availability, and leading-edge technology tools, we can support those customers in more ways. That's what helps us deepen relationships and create stickier, higher-value opportunities over time. Those opportunities aren't just broad, they're deep, and they keep growing. Turning to slide 11, the external data continues to back up what we're seeing in the field, with Dodge projecting over $800 billion of U.S. megaproject starts in 2026, well above the level we saw in 2025.
We know investors are trying to translate these massive headline numbers into actual rental revenue, so let me frame how we think about it. First, that Dodge number reflects total construction value, not equipment rental spend. Historically, about 2% converts into rental, though that varies by project type. Second is our target share. As I said, over time, we are now targeting 20% share of that megaproject rental opportunity. Third, these are multi-year jobs, so the revenue doesn't hit all at once. It's spread over the duration of the project, which is typically three to five years or more. The math is more nuanced than the headline suggests. The takeaway is simple: the market opportunity is large, it is durable, and we now have the capacity to capture a meaningfully larger piece of it as these projects ramp and new projects enter the pipeline.
Turning to slide 12, this is the framework we introduced at the beginning of the year to illustrate our 2026 operational progression. The key message is that the playbook is working. The integration actions are behind us, the foundation is in place, and we are now moving into the acceleration phase with a 30% larger, more efficient business, a highly productive fleet, new specialty locations gaining momentum, and a larger sales force maturing across the network. As we execute this playbook, two factors have shifted since we set our original plan. The first is the strengthening megaproject demand we just discussed. The opportunity is larger than we expected earlier in the year, and we are increasing fleet investment to support that growth based on the robust project pipeline in front of us. We are adjusting our equipment rental revenue guidance accordingly.
The second variable is fuel and logistics inflation, which reflects as significantly higher beginning in April as a result of the conflict in the Middle East. Larry touched on this earlier, Mark will take you through the specifics, but let me give you some operational insight into how we're thinking about logistics longer term and the opportunity it presents, because fuel and logistics inflation isn't only a cost-recovery issue. With a much larger network in place, we have an opportunity to improve the way we manage transportation economics across the platform. That work is underway through a comprehensive logistics transformation initiative that began in late 2025. It builds on the progress we've made over the last several years, but it's designed for the scale of the company we are today. The focus is on better routing, stronger process discipline, improved cost recovery, and more consistent execution across the network.
This is a multi-year effort, and it is above and beyond our acquisition cost synergies. Over time, we expect it to help us build a more efficient, scalable delivery engine that improves service for customers and supports ongoing margin improvement. As we move into the H2, the operating agenda is clear: with the right fleet against accelerating demand, continue improving utilization and fleet efficiency, we are focused on converting this larger platform into sustainable growth. Mark will now walk you through the financial results and the updated outlook. Mark?
Thanks, Aaron. Good morning, everyone. I'm on slide 14 with a summary of our key financial metrics. Starting with our GAAP results, equipment rental revenue was up approximately 23% year-over-year, total revenues grew 20%, primarily driven by the acquisition of H&E, which was in our base for only one month in the prior year period. Adjusted EBITDA increased 19%, adjusted EBITDA margin was 40.4%. REBITDA, which excludes equipment and parts sales, increased approximately 18%, REBITDA margin was 41.4%. Margin pressure was driven by the impact of the H&E acquisition and fuel and freight inflation year-over-year. Adjusted net income was $48 million, or $1.43 per diluted share, including add-back adjustments of $4 million of restructuring and transformation costs. That includes initial costs of the logistics transformation initiative Aaron just discussed.
Because the prior year GAAP comparison includes only one month of H&E, slide 15 provides a more meaningful view of the combined company's underlying performance in the Q2. On a pro forma basis with Herc and H&E combined in both periods, equipment rental revenue increased despite the year-over-year reduction in average fleet at OEC, resulting in strong fleet efficiency in the Q2. Pro forma dollar utilization increased more than 200 basis points over last year, another clear indication that the combined fleet and the rental revenue mix are becoming more productive. On profitability, pro forma adjusted EBITDA margin was down approximately 60 basis points, pro forma REBITDA margin was down about 120 basis points. As noted, the largest source of year-over-year cost pressure in the Q2 came from fuel and transportation inflation, which is up approximately 35% since the Q1.
This impacted adjusted EBITDA margin by about 150 basis points and adjusted REBITDA margin by 170 basis points. For context, not all fuel exposure can be recovered in real time. A portion of our fuel consumption comes from our own sales and service vehicles, as well as typical inter-region fleet positioning where there is no direct customer offset. On the delivery and refueling side, which is embedded in ancillary revenue, recovery depends on customer arrangements and contract terms. The timing of that recovery can lag sudden price moves like we saw in April. We're working on all of this through our own pricing actions, better pass-through discipline, and contract renewal negotiations.
Those fuel and transportation pressures were partially offset by improved operating performance and cost synergies, such that when you exclude fuel inflation, adjusted EBITDA margin was up 90 basis points, and adjusted REBITDA margin was up 50 basis points year-over-year. Turning to slide 16, you can see that we generated $202 million of free cash flow for the H1. We ended the quarter with ample liquidity of $2.1 billion and net leverage of 3.95x, and we paid our regular quarterly dividend of $0.70 per share. When it comes to capital allocation, as Aaron said, we're making a deliberate choice this year to step up fleet investment to meet increasing demand. Importantly, that incremental investment is weighted toward higher margin, higher return specialty equipment. As this fleet goes on rent against strong demand, it drives EBITDA growth.
Growing EBITDA is the most powerful lever for bringing down leverage. We like the flywheel set up we're beginning to see as we think about the trajectory into 2027. That brings me to guidance on Slide 17, which we are increasing to reflect stronger demand, particularly in national accounts. You can see the full ranges here. At the midpoint of the updated guidance, we now expect full-year equipment rental revenue of $4.425 billion, supported by roughly $900 million of net fleet CapEx. On a pro forma basis, the revised midpoint estimate reflects equipment rental revenue growth of nearly 5% on flat average OEC year-over-year. Adjusted EBITDA is now projected to be approximately $2.09 billion at the midpoint of the range. A few key assumptions behind the updated outlook. Our incremental revenue synergy target for the year is unchanged at $100 million-$120 million.
We feel really good about the progress we're making there. Cost synergies also remain on track, with an incremental $90 million this year towards the fully realized $125 million target by year-end. That said, oil prices have moved higher again since June, our guide assumes fuel and freight will remain cost headwinds in the H2. Given the uncertainty around how long that macro volatility persists, we're modeling a quarterly expense impact broadly consistent with the Q2.
All in, we expect fuel and transportation inflation to create about a point of pressure year-over-year on adjusted EBITDA margin for full-year 2026. Finally, as a result of the higher fleet investment, free cash flow is now expected to be between $250 million-$350 million this year. The bottom line, the revenue inflection we expected is now underway. Demand is stronger than our original plan, and we are investing to capture that opportunity while continuing to manage fleet efficiency, costs, and capital with discipline. Now, let's open it up for questions. Operator?
At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We request to limit yourselves to one question and one follow-up. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Jerry Revich with Wells Fargo. Your line is open.
Good morning, Jerry.
Jerry, hi.
Good morning, Larry. Good morning, everybody. I just wanted to ask, really nice to see the dollar yield accelerate over the course of the quarter. We're hearing about price increases up to a point per month in some regions. Can you just talk about the pricing environment that you're seeing? Is that consistent with the cadence that you've seen over the course of the quarter and into July, Mark?
Yeah, I think from our perspective, Jerry, the dollar utilization was quite honestly a lot of self-help. We saw and anticipated the fleet to get healthier as we sort of worked our way in inflecting through Q2. That happened probably a little bit ahead of where we thought it would, and that's probably the biggest driver in the lift from a dollar yield perspective. I think on the pricing environment, I think at the end of the day, we have a rational and constructive pricing environment. The supply and demand dynamics are extremely healthy. It's a huge focus for us, and we're going to continue to sort of push price like we always do.
Okay. Super. On the time utilization part of the equation, when we look at the strong results you folks were posting as a standalone company before H&E, dollar yield in the mid-40s. How much progress can we make on closing that dollar yield gap based on what you see in front of you compared to what Herc posted on a standalone basis, call it four years ago?
Yeah. It's a great question, Jerry. I think you have to think about that sort of in context of averages. Herc was probably running 42s and 43s. I think as we sit here today, there's still a mixed component of that that we have to continue to invest in to sort of bring that overall mix back up to where Herc was on a standalone basis pre-acquisition. I do think as you think about sort of the incrementals from a dollar use perspective, I think you can anticipate probably seeing what you saw incrementally from Q1 to Q2. Probably that sort of lift into Q3 and Q4 as well, year-over-year dollar use lifts.
Your next question comes from the line of Rob Wertheimer with Melius Research. Your line is open.
Good morning, Rob.
Good morning, guys. I know you just touched on it with Jerry and previously, what do you see as your biggest margin opportunities going forward? Are there still inefficiencies? There are still a lot of sales force ramp as you try to get people to sell the broader range of what you guys do. Just curious what gets you back there. I'll just ask my second now. On mega projects, does this put you in a position of wanting to bid for more first position in mega project? Maybe you could just talk about that opportunity widening out. Is that just more support or is that a change in how you'd approach go to market? Thank you.
Yeah, Rob, on the margin question, I would say it's moving our mix profile back to where we were with specialty. We have a longer term goal of taking our specialties to a 20%-30% range of our business. After the H&E acquisition, we fell down into the mid-teens. Moving that back up really helps our margin profile. There's a lot of self-help stuff we can do, like we're talking about our logistics work we've embarked on, which will be a multi-year program. The sales teams are large, but they're still working. You learn how to work together from the acquisition. As that matures, you get the tools being used properly, tools like pricing discipline. Those are things that are going to help our discipline.
On the mega piece, when we look back what our position was two years ago to now, we are more equipped to be the primary or a strong secondary on more mega projects than I think we were two or three years ago. Our scale matters a lot. Quite honestly, I've mentioned just the view that the large contractors take when they look at us, because we have more fleet, more scale, more capabilities, better technology than we had a few years ago. Those are all things that are positioning us in the right spot to win more.
Thank you.
Thank you.
Your next question comes from the line of Mig Dobre with Baird. Your line is open.
Morning, Mig.
Morning, Mig.
Good morning, everyone. Just going back to the CapEx guidance increase. I think I heard two things going on, and I'm trying to parse out which is the bigger driver here. On the one side, you're talking about better demand in mega projects being at the root of that. You're also talking about leaning into specialty more. I'm trying to understand if this CapEx increase is a function of you trying to truly ramp up the specialty business, maybe taking advantage of that H&E footprint, or if this is more truly a demand signal. Presumably, this tells us something about 2027, really, given the timing of your CapEx increase. Help us parse these things out.
Yeah, I would say, Mig, that the increased fleet is demand-driven. That demand is coming from both mega projects and specialty, and oftentimes those are going hand in hand. When you think about this or when we're thinking about this as we move into the back half of the year, that midpoint of the new guide grows fleet at about 300 basis points H2, and levels you year-over-year from an average fleet perspective. When we step back and look at that, I would tell you that this increased CapEx is absolutely not speculative. This is demand-driven and not a phase II, if you will, of the branch optimization where we're just trying to put additional fleet into those new specialty locations. That may be part of it, but the demand is the driver here.
Okay. That's helpful. My follow-up on the H&E integration, which you said that you're pretty much done with that. My impression of their business prior to you acquiring it is that pricing was a little bit different relative to what we would consider best in class maybe in the industry, maybe some of the things that you were doing. I'm curious where you are in terms of reassessing pricing for that part of the business, maybe some of the contracts that are a little more longer term in nature that H&E had.
Yeah, I think you have to bifurcate that answer. Excuse me, Mig. You have to bifurcate that answer between the local market spot and the contracts. I think that maybe to answer your question directly, I think we're probably right where we thought we would be. Two, I think that the contract component of this will probably take sort of the three-year run to sort of raise the ultimate contract pricing to where we anticipated it to be back pre-acquisition. I think the spot market component will run as the local market runs. They're inside of our technology and pricing tools now, we're beginning to see those benefits today. I think that the real pricing lift comes from sort of the local market being reignited.
Your next question comes from the line of Kyle Menges with Citigroup. Your line is open.
Morning, Kyle.
Good morning. Thanks for taking the question. I was hoping if you could just unpack a little bit what's going on in the fuel and transportation costs inflation, not sure if you're able to maybe break it down a little bit further, but maybe between what's stickier versus more transitory in your mind.
Yeah.
Kind of what is tied to your sales and service vehicles versus just maybe timing of getting better recoveries, et cetera.
Yeah. No, I think simplistically, if you think about 170 basis points of impact, I would call it all transitory as we sit here today. That's just a measure off of Q1. As I mentioned in my prepared, we saw somewhere in the order of magnitude of sort of 35% increases as we worked our way through Q2. Simplistically, probably half of that impact is not able to be passed on. You just think about sort of the inter-branch moves, which we've done from the beginning of time, and sort of the servicing of our own sales and service vehicles. That probably equates to about half of the impact.
The other half, to your point and question is items that have the ability to be passed on to customers. We continue to sort of work there to make sure that we're as tight as we can possibly be as we move into Q3. The wild card is, does 35% become 50? Like I said, we sort of built in about the same level of impact in three and four, we'll see how it plays out.
Got it. That's helpful. Just curious, any update on the 50 or so specialty locations that you had opened in Q4 and Q1, and just how those are progressing in the ramp-
Yeah.
The cross-selling as well?
Yeah, Kyle. Those are performing well. It was really just a benefit of an exercise with the real estate that we picked up from the acquisition to scale our specialty business that rapidly. That would've taken us several years to do without an acquisition with that much real estate. It's working very well. It'll take two years for that kind of that EBITDA margin to mature to a level that is alike our mature locations. They're contributing EBITDA now, and they're all managed by internal managers that came up through our organization. There's a lot of career movement with all those branch optimization openings. Our regional management's done a great job putting people in positions to win, and our team's working really well sharing fleet.
Your next question comes from the line of Ken Newman with KeyBanc Capital Markets. Your line is open.
Good morning, Ken.
Hey, good morning, guys. Thanks for taking the question.
Morning, Ken.
Morning. Maybe first, Mark, just on the synergy capture target. Sorry if I missed this in your prepared remarks, of the incremental $90 million in cost synergies and the incremental $100 million-$200 million of revenue synergies, how much of that is left to kind of be realized in the back half of this year? Just to help us kind of frame just the momentum that we have looking into the Q3 and Q4.
Yeah. I think you got to think about from a revenue perspective, it was always more heavily weighted to the back half, probably 60/40 back half weighted. From a cost perspective, that incremental 90, it started a little slower. That ramp now is probably extremely ratable from July through December. Probably 55% of that, if I'm sort of rounding here, probably is incremental back half, give or take.
Okay. Yeah. Got it. That's very helpful. For my follow-up, just going back to the fleet and the CapEx needs, it's good to hear that activity is heating up. It's supporting the visibility that you have into the back half. I guess, when you think about your suppliers and the price of equipment inflation, one, do you think the OEMs have capacity to support even further fleet expansion if the market supports it? Then two, how do you think about the incremental return on that next piece of equipment being bought? Because obviously this would be purchased outside of your advanced purchase agreements that you do late in the year of last year.
Yeah, look, we are very confident in the OEM's ability to supply us with gear in the back half of the year to the incremental levels. The vast majority of it, probably 70% of it, is specialty equipment that we'll be bringing in. We do think that that'll be able to contribute to the levels that we expect relative to financial performance and dollar use and time utilization, because most of that will probably go right to a job. It'll also set up a great flywheel going into 2027.
Your next question comes from the line of Tami Zakaria with JPMorgan. Your line is open.
Hi, Tami.
Hi, good morning. Thank you so much. My question is more of a medium-term question. Given your free cash flow expectation has come in a bit lower now, how do you think about your potential to de-leverage the balance sheet over the next 12, 24 months if you have to continue investing in CapEx in response to improving demand?
Yeah, no, it's a fantastic question, Tami. I think, just looking at 2026, firstly, it has very little impact to the 2026 leverage expectation we have there. I do think that you hit on it, though, and really hearkening back to what Larry just said, there's a flywheel effect of this into 2027. We're kind of staring at maybe 2.5%-3% fleet growth into 2027, generating EBITDA, which, as you are well aware, that EBITDA generation is the most efficient way to get that leverage down.
I don't necessarily see, maybe very slight sort of short-term impact from a leverage perspective. As you think about that in context of getting to that 3x at the end of 2027, I don't see this as problematic in the slightest. I think we're going after the demand. Like I said, this is not speculative, so it should be EBITDA generating, which is what we need to sort of lever down to that 3x range.
Understood. That's very helpful. My second question is on fuel inflation. I appreciate all the comments you made earlier. I'm hoping to fish for some numbers, if that's okay. The 150 basis points fuel headwind in the Q2 you saw.
Yeah.
Do you currently have any expectation of what that headwind might look like in Q3 and Q4 in terms of basis points?
Yeah, I guess what I would say is we're sort of anticipating the same level of impact in Q3 and Q4 that we saw in Q2. Obviously, Q3 and Q4 are higher equipment rental revenue quarters, so the % will go down slightly. What I would say is that we are anticipating about a point of drag for the entirety of the year.
Your next question comes from the line of Neil Tyler with Rothschild & Co Redburn. Your line is open.
Hey, Neil.
Hey, dude. Yeah, good morning. Just going back to the earlier question on the changed goal for mega-project participation. How does that impact your longer-term strategy in terms of customer mix? Therefore, I suppose, within that, any verticals that you think you might need to add to accommodate that changed go-to market strategy? That's the first one. Then the second question, I'll ask that now. On the longer term sort of logistics efficiency program, I appreciate that's going to take some years to sort of filter through and to smooth things out, but can you help us with how you're thinking about the upfront investment cost and at what point that sort of balances out with those efficiencies and whereabouts we will be when that happens?
Okay. Neil, first part was the balance of our revenues. We believe to have a 60% local, 40% national mix is the right mix long term. In this environment with the interest rate pressure on the local markets, it's difficult to achieve, obviously there's opportunities, that's how we're moving our business in scaling and servicing those mega opportunities. Now, over time, the local is attractive to us because we're hopeful that cycle will change at some point. That's how we built our business. We have an urban market strategy. Actually, the pricing points, the pricing that you get in the local market is a better price point than your local. In the meantime, our fleet is fungible, so we can move it from the local markets to serve the mega projects.
Long term, 60/40 is still where we want to be, and we think that's the optimal way to manage the business. Now, we continue to focus on the local markets, right? We know that the cycle will turn. It always turns. We want to be ready for it. We continue to work on building our capabilities on the local market and not kind of conflating what we're doing in the mega with our core local business. Okay? That's always kind of the core part of our business, so we'll continue to be focused on that. The logistics, we're very excited about the logistics. It's actually something we started focusing on about three and a half, four years ago internally. We built a logistics team to focus on improving our recovery of costs for the Herc Rentals business before the big acquisition.
When we moved to the big acquisition, we saw that we have all this extra scale, and although we got some early synergies with logistics by having more trucks on the road and in the urban markets, we saw that we could do much, much better. Logistics is a complex item. Our core business is rental and solution services, right? It's not logistics, but logistics is a big cost burden on the business. We're moving to become experts at the logistics side of our business, too. As far as the cost piece, we do have a core team.
We expanded our team, and we enlisted some help from a large consulting company that has expertise in logistics because there's things that we knew that we couldn't do alone. That's beginning to happen. That engagement started earlier in the year. We'll call it January. Now we're rolling out into pilot. As we get traction, as we have more information to share, we'll provide that. We know that we focus, you win, and it's a multi-year project, and we'll get to a point where we're experts at our logistics businesses as well as our rental and solutions business.
Great. Thank you.
Your next question comes from the line of Steven Ramsey with Thompson Research Group. Your line is open.
Morning, Steven.
Good morning, everyone. Wanted to get deeper on the national accounts topic here. You can now reach the 20% share, at least on the mega projects. Is that something you expect to achieve in H2 2026, or is this something that you reach in 2027?
If you look back in time over the last few years, we've said our guide on our share of mega is 10%-15%. We said that the big acquisition really positioned us better, and we started to touch that 15% level. With our pipeline of activity, our commitment to new business contracts we have, what we're doing with our CapEx this year, we just see that we're going to shift from a 15%-20%. That doesn't mean we're going to get to 20% in 2026 or 2027. Over the next few years, we see our position strengthening to a 15%-20% range.
Okay. That's helpful. Thinking about raising CapEx and better market demand, do you feel like you were missing opportunities in the marketplace and now with the larger fleet, you can capture that? Or is it simply it's out there and we can go get it now?
No, it's really just about Herc's positioning in the opportunities that are in the mega project arena, and our capabilities. We're a much different looking company than we were 15 months ago. That's really our view on where we're going with that.
Your next question comes from the line of Seth Weber with BNP Paribas. Your line is open.
Hey, Seth.
Hey, guys. Good morning.
Morning.
Nice to talk to you. You know, H&E historically had a pretty strong footprint in some petrochemical type projects. I'm wondering if you're seeing any pickup in that part of the world, specifically. Thanks.
Yeah, they had a good footprint in the Gulf, and in West Texas, the Permian, as did Herc Rentals. Herc had upstream, H&E had upstream. Herc had downstream, and H&E didn't have downstream. Our position is still in the mid-single digits, high single digits range. When oil shoots up the way it does, usually you see the downstream business slow down turnaround activity because they want to produce more fuel. It's kind of ebb and flow. No material change to our oil and gas business. Still in the mid to high single digit level.
Okay, thanks. Can you help us on the CapEx cadence for the H2? It seems like Q3 could be unusually large here. Is that the right way to think about it? Q4 kind of goes back more normal? Is it just very heavily Q3 weighted?
Yeah. I think, Seth, the way I would tell you to think about that is, if you think about the new midpoint, $1.325 billion, and you think about 70%-75% of that being acquired in Q2 and Q3, I think that's the right way to think about it. I think that the Q1 and Q4 will come back and look normal. But I think you probably have a little bit heavier, and that's probably consistent as well, but Q2, Q3, heavier, 70%-75% of the totality, the remainder would fall into Q4.
I will now turn the call back over to Leslie Hunziker for closing remarks.
Thank you for joining us on the call today. We certainly look forward to updating you on our progress in the quarters to come. Of course, if you have any further questions, please don't hesitate to reach out to us. Have a great day.
Ladies and gentlemen, that concludes today's call. Thank you for joining. You may now disconnect.
Investor releaseQuarter not tagged2026-07-27What To Expect From Herc’s (HRI) Q2 Earnings
StockStory
What To Expect From Herc’s (HRI) Q2 Earnings
Equipment rental company Herc Holdings (NYSE:HRI) will be announcing earnings results this Tuesday before the bell. Here’s what you need to know. Herc beat analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 32.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly. Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Herc’s revenue to grow 14.6% year on year, slowing from the 18.2% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Herc has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and United Rentals reported revenues up 11.8%, topping estimates by 4.9%. Richardson Electronics traded up 20.6% following the results while United Rentals was also up 10.1%. Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Herc is up 11.1% during the same time and is heading into earnings with an average analyst price target of $174.83 (compared to the current share price of $162.59). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same…Read full documentShow less
Equipment rental company Herc Holdings (NYSE:HRI) will be announcing earnings results this Tuesday before the bell. Here’s what you need to know. Herc beat analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 32.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly. Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Herc’s revenue to grow 14.6% year on year, slowing from the 18.2% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Herc has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and United Rentals reported revenues up 11.8%, topping estimates by 4.9%. Richardson Electronics traded up 20.6% following the results while United Rentals was also up 10.1%. Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Herc is up 11.1% during the same time and is heading into earnings with an average analyst price target of $174.83 (compared to the current share price of $162.59). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
Investor releaseQuarter not tagged2026-07-22Old Dominion to Report Q2 Earnings: What's in Store for the Stock?
Zacks
Old Dominion to Report Q2 Earnings: What's in Store for the Stock?
Old Dominion Freight Line ODFL is scheduled to report second-quarter 2026 results on July 29, before the market opens. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 6.29% over the past 60 days to $1.52 per share. The consensus mark indicates a 19.69% increase from second-quarter 2025 actuals. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.53 billion, indicating a 8.93% increase from the second quarter of 2025 actuals. Old Dominion has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 3.69%. Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote Let’s see how things have shaped up for ODFL this earnings season. We expect ODFL's performance in the to-be-reported quarter to have benefited from its cost-based pricing approach, which helps offset inflationary cost pressures while supporting customer retention and freight volumes. The company’s consistent execution of its disciplined yield management strategy is expected to have boosted its LTL revenue-per-hundredweight metric. LTL revenue per hundredweight increased 2.4% in 2024 and 3.9% year over year in 2025. The metric is expected to have continued improving in 2026 as the company optimized its pricing and freight mix. The Zacks Consensus Estimate for Old Dominion’s second-quarter 2026 LTL services revenues is pegged at $1.51 billion, indicating an 8% increase from the year-ago reported figure. On the contrary, the ongoing geopolitical tensions in the Middle East and supply-chain disruptions are likely to have materially affected ODFL’s performance in the March-end quarter. The Zacks Consensus Estimate for total revenues from other services is pinned at $7.57 million, indicating a 40% decline from the year-ago reported figure. Our proven model conclusively predicts an earnings beat for ODFL this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Old Dominion has an Earnings ESP of +1.93% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Ran…Read full documentShow less
Old Dominion Freight Line ODFL is scheduled to report second-quarter 2026 results on July 29, before the market opens. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 6.29% over the past 60 days to $1.52 per share. The consensus mark indicates a 19.69% increase from second-quarter 2025 actuals. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.53 billion, indicating a 8.93% increase from the second quarter of 2025 actuals. Old Dominion has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 3.69%. Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote Let’s see how things have shaped up for ODFL this earnings season. We expect ODFL's performance in the to-be-reported quarter to have benefited from its cost-based pricing approach, which helps offset inflationary cost pressures while supporting customer retention and freight volumes. The company’s consistent execution of its disciplined yield management strategy is expected to have boosted its LTL revenue-per-hundredweight metric. LTL revenue per hundredweight increased 2.4% in 2024 and 3.9% year over year in 2025. The metric is expected to have continued improving in 2026 as the company optimized its pricing and freight mix. The Zacks Consensus Estimate for Old Dominion’s second-quarter 2026 LTL services revenues is pegged at $1.51 billion, indicating an 8% increase from the year-ago reported figure. On the contrary, the ongoing geopolitical tensions in the Middle East and supply-chain disruptions are likely to have materially affected ODFL’s performance in the March-end quarter. The Zacks Consensus Estimate for total revenues from other services is pinned at $7.57 million, indicating a 40% decline from the year-ago reported figure. Our proven model conclusively predicts an earnings beat for ODFL this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Old Dominion has an Earnings ESP of +1.93% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. ODFL reported solid first-quarter 2026 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of $1.14 beat the Zacks Consensus Estimate of $1.05 but dipped 4.2% year over year. Revenues of $1.33 billion beat the Zacks Consensus Estimate of $1.31 billion but decreased 2.9% year over year. Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. Herc Holdings Inc. HRI has an Earnings ESP of +14.47% and a Zacks Rank #3 at present. HRI is scheduled to report second-quarter 2026 results on July 28, before the market opens. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 7.04% over the past 60 days to 76 cents per share. The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 16.75% increase from second-quarter 2025 actuals. Schneider National SNDR has an Earnings ESP of +1.50% and a Zacks Rank #1 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30. The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report Herc Holdings Inc. (HRI) : Free Stock Analysis Report Schneider National, Inc. (SNDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

