BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: NYSE:HRI) has reported a robust start to 2024 with a record first quarter revenue of $804 million, marking a 9% increase from the same quarter last year. The company's earnings per share (EPS) for the quarter stood at $2.29, surpassing analyst expectations by $0.14.
This performance reflects a positive trend in equipment rental revenue, which saw a 5.1% pricing increase and an 8.0% volume increase, despite challenges posed by inflation and a mixed market.
The company's adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a 10% increase, reaching $339 million, with an adjusted EBITDA margin improvement to 42.2%. Herc Holdings' net income, however, experienced a slight 3% decrease to $65 million, or $2.29 per diluted share, when compared to the prior year's same quarter. The decrease in net income is attributed to higher interest expenses and depreciation costs, which were somewhat offset by improved operating leverage and cost performance.
Larry Silber, president and CEO of Herc Rentals, attributed the strong quarter to the company's strategic focus on growth markets such as semiconductor, data centers, renewables, and public infrastructure. Silber also highlighted the company's efforts in enhancing customer experience, managing fleet efficiency, and scaling their network through strategic acquisitions and greenfield locations.
Looking forward to the full year 2024, Herc Holdings has affirmed its guidance for equipment rental revenue growth between 7% to 10% and an adjusted EBITDA of $1.55 billion to $1.60 billion. This guidance indicates a confident outlook for the company's performance for the rest of the year.
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