Overview

* Herc Holdings ( HRI ) Q2 revenue rises 18%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus

* Co reports $35 mln net loss due to acquisition costs and asset sale losses

Outlook

* Herc Holdings ( HRI ) projects 2025 equipment rental revenue of $3.7 bln to $3.9 bln

* Company expects adjusted EBITDA of $1.8 bln to $1.9 bln for 2025

* Herc Holdings ( HRI ) forecasts net rental capex of $400 mln to $600 mln for 2025

* Company anticipates gross capex of $900 mln to $1.1 bln in 2025

Result Drivers

* ACQUISITION IMPACT - H&E acquisition drove revenue growth but also led to transaction costs and dis-synergies

* RENTAL REVENUE GROWTH - Equipment rental revenue increased 14%, bolstered by acquisitions and fleet expansion

* MARKET MODERATION - Continued moderation in interest-rate sensitive sectors impacted performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1 bln $981.40

Revenue mln (4

Analysts

)

Q2 Beat $1.87 $1.53 (4

Adjusted Analysts

EPS )

Q2 EPS $1.17

Q2 $56 mln

Adjusted

Net

Income

Q2 Net -$35 mln

Income

Q2 $406 mln

Adjusted

EBITDA

Q2 41.0%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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 ( HRI ) is $170.00, about 11.8% above its July 28 closing price of $149.88

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(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.)