Herc Holdings beats Q2 revenue estimates, lifts 2026 outlook

Overview

• Equipment rental supplier's Q2 revenue rose 20%, beating analyst expectations

• Adjusted EPS for Q2 more than doubled and beat analyst expectations

• Company raised 2026 full-year guidance for equipment rental revenue and adjusted EBITDA

Outlook

• Herc Holdings raises 2026 equipment rental revenue guidance to $4.375 bln-$4.475 bln

• Company lifts 2026 adjusted EBITDA forecast to $2.05 bln-$2.125 bln

• Herc Holdings expects to gain share from higher construction spending and recent acquisitions

Result Drivers

• HE ACQUISITION - Co said revenue growth was driven by the larger fleet size and capacity following the HE acquisition

• MEGA PROJECTS SPECIALTY RENTALS - Increased volume on mega projects and a higher mix of specialty equipment rentals contributed to growth

• FLEET EFFICIENCY - Improved fleet efficiency and a favorable shift in rental mix supported higher dollar utilization

Company press release: ID:nBwvSdMna

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Herc Holdings Inc is $175.00, about 9.4% above its July 27 closing price of $160.00

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 28 - Austria's Palfinger H1 profit falls on softer demand

• July 27 - Germany's Hochtief H1 operational net profit rises on infrastructure demand; raises guidance

• July 27 - France's Rexel H1 sales rise, EBITA margin improves on volume and price gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)