Highlights

  • Third quarter 2026 total revenues were $1,364 million and net income was $104 million, or $3.10 per diluted share.
  • Equipment rental revenue increased $132 million, or 12%, while sales of rental equipment decreased $66 million, or 44%.
  • Total nominal indebtedness was approximately $8.1 billion at September 30, 2026, with cash and cash equivalents of $66 million.
  • The 2026 adjusted EBITDA guidance midpoint is $2.13 billion, with free cash flow guidance of $250 million to $350 million.

Herc Holdings Inc. (NYSE: HRI) shares were trading at USD 150.23 on October 27, 2026, up 18.17%, with a relative volume at time of 4.96. The equipment rental company completed the integration of H&E Equipment Services, announced a chief executive succession plan on October 26, and filed its 10-Q for the quarter ended September 30, 2026 on October 27 alongside updated full year guidance.

Herc Holdings is a Delaware corporation with principal executive offices in Bonita Springs, Florida. It conducts nearly all of its operations through subsidiaries, including Herc Rentals Inc. The company had 615 locations in North America as of September 30, 2026, and describes more than 60 years of experience. It rents aerial, earthmoving, material handling, truck and trailer, air compressor, compaction and lighting equipment, and offers ProSolutions and ProContractor offerings. It reports one segment, equipment rental. Its fiscal year ends December 31. The filing does not state a headcount.

Third Quarter 2026 Results

For the three months ended September 30, 2026, total revenues were $1,364 million, against $1,304 million in the third quarter of 2025. Equipment rental revenue was $1,254 million, an increase of $132 million, or 12%, which the company attributed mainly to growth in average fleet on rent, particularly on mega projects, along with delivery and refuel revenues and acquisition revenue synergies. Sales of rental equipment were $85 million, a decrease of $66 million, or 44%.

Net income was $104 million, against $30 million a year earlier, and diluted income per share was $3.10 against $0.90. Income before income taxes was $120 million and the income tax provision was $16 million, compared with $8 million. Interest expense, net was $126 million, a decrease of $8 million.

Direct operating expenses rose $65 million, or 14%, to $532 million, and were 42.4% of equipment rental revenue, compared with 41.6%. The company cited higher fuel expenses of $21 million and higher delivery expenses of $10 million. Selling, general and administrative expenses were $178 million. On the call, management said adjusted EBITDA margin, a non-GAAP measure, was 44.2%, and that REBITDA margin of 45.2% was down 70 basis points. Adjusted net income, also non-GAAP, was $131 million, or $3.91 per diluted share.

For the nine months ended September 30, 2026, total revenues were $3,707 million and net income was $99 million, compared with a net loss of $23 million in the prior year period.

Liquidity and Capital

As of September 30, 2026, Herc Holdings had approximately $8.1 billion of total nominal indebtedness outstanding. Liquidity consisted of cash and cash equivalents of $66 million and unused commitments of approximately $2.0 billion under its ABL Credit Facility. Cash provided by operating activities for the nine months was $951 million, compared with $770 million. Cash used in investing activities was $818 million, and cash used in financing activities was $119 million. Management said it paid a regular quarterly dividend of $0.70 per share and that net leverage was 3.9x.

Leadership and Outlook

The company announced that Lawrence Silber will become executive chairman and Aaron Birnbaum will become chief executive officer on January 1. Management said the H&E integration is complete.

For 2026, management said it expects equipment rental revenue of $4.513 billion and adjusted EBITDA of $2.13 billion at the midpoint of its guidance ranges, and net fleet CapEx of approximately $1.05 billion at the midpoint. Free cash flow guidance remains $250 million to $350 million. Management said it does not expect a direct impact of current macroeconomic conditions on 2026 fleet procurement costs, but anticipates higher fuel and transportation costs in the short term that could have a negative effect on results.