EarningsQ2 2026 Earnings Report
MX:HRI Q2 2026 EPS Results
Actual EPS$25.99
Consensus EPS$13.89
Beat/MissBeat by +$12.11
One Year Ago EPS$33.99
MX:HRI Q2 2026 Revenue Results
Actual Revenue$21.89B
Expected Revenue$21.01B
Beat/MissBeat by +$871.64M
YoY Revenue Growth+20.16%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeBefore Open
Conference CallTuesday, July 28, 2026
MX:HRI Upcoming Earnings
Herc Holdings's next earnings date is estimated for October 15, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:HRI Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational momentum following the H&E integration: revenue and adjusted EBITDA grew materially, pro forma utilization and fleet efficiency improved, specialty and mega-project pipelines accelerated, and management raised guidance. The primary headwinds are elevated fuel and transportation inflation, near-term margin compression on a pro forma basis, and a temporary reduction in free cash flow due to stepped-up fleet investment, all of which management is addressing via pricing actions, logistics transformation and targeted capital allocation. On balance, the positives (revenue inflection, utilization gains, raised guidance and synergy progress) substantially outweigh the lowlights.Company Guidance
Revenue Growth and Raised Guidance
GAAP equipment rental revenue rose ~23% year-over-year and total revenues grew ~20%. Management raised full-year equipment rental revenue guidance to a midpoint of $4.425 billion and now expects pro forma equipment rental revenue growth of nearly 5% at the revised midpoint on flat average OEC.
Improved Fleet Efficiency and Utilization
Pro forma equipment rental revenue returned to growth, increasing 2% overall, while average fleet at OEC was approximately 3% lower versus prior year. Pro forma dollar utilization increased by more than 200 basis points, and dollar/time utilization improved sequentially through the quarter.
Adjusted EBITDA and Underlying Profitability Gains
Adjusted EBITDA increased ~19% with an adjusted EBITDA margin of 40.4%; REBITDA rose ~18% with a 41.4% margin. Excluding fuel inflation, adjusted EBITDA margin improved ~90 basis points and adjusted REBITDA margin improved ~50 basis points year-over-year, indicating underlying operating improvement.
Specialty Revenue and Mega Project Momentum
Specialty revenues grew in the double digits in Q2. Management increased its target share of U.S. mega project rental opportunity from 15% to 20%, citing a stronger pipeline and multiyear project visibility driving incremental fleet investment.
Accelerated Fleet Investment and Synergy Targets
Onboarded roughly $450 million of the 2026 fleet buy in Q2 and added $634 million of fleet at OEC in H1. Net fleet CapEx guidance increased to roughly $900 million for the year. Revenue synergy target remains $100M–$120M and incremental cost synergies of $90M are expected this year toward a $125M run-rate.
Technology Adoption and E-commerce Strength
Active external users of the ProControl platform grew nearly 20% quarter-to-quarter. Q2 was the company's highest revenue-generating e-commerce quarter-to-date, demonstrating stronger digital engagement and transaction adoption.
Liquidity, Cash Generation and Shareholder Actions
Generated $202 million of free cash flow in the first half, ended the quarter with $2.1 billion of liquidity and reported net leverage of 3.95x. The company continued its regular quarterly dividend of $0.70 per share and reported adjusted net income of $48 million ($1.43 per diluted share).
Asset Dispositions and Capital Recycling
Disposed $247 million of fleet at OEC in the quarter, generating proceeds of approximately 46%, enabling recycling of capital into higher-return specialty fleet to support demand.
MX:HRI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed