Herc (HRI) Barclays 42nd Annual Industrial Select Conference summary

Acquisition announcement and strategic rationale

• Announced acquisition of H&E Equipment Services, accelerating growth, expanding footprint, and increasing density in key regions.

• H&E brings a high-quality rental business with a younger fleet, expanded branch network, and strong regional presence.

• Projected to be highly accretive, with high single-digit EPS growth in 2026, ramping to over 20% after full synergy realization.

• Deal structured to maintain financial flexibility, targeting net leverage below 3.0x within 24 months and continuing current dividend policy.

• Pro forma financials show ~$5.2B revenue, ~$2.5B adjusted EBITDA, and ~$10B fleet OEC with a synergized EBITDA margin of ~48%.

Synergies, integration, and financial impact

• $125 million in cost synergies and $175 million in revenue synergies identified, targeting $300 million incremental EBITDA by year 3.

• 60% of cost synergies expected within 12 months, 90% by year two, and full realization by year three; revenue synergies phased in and fully realized by year three.

• Integration to be managed regionally, leveraging experience from 51 prior acquisitions and dedicated teams.

• Technology integration and cross-selling of specialty products are key drivers for synergy realization and value creation.

• ROIC projected to exceed cost of capital within three years of closing, with high free cash flow conversion and discounted cash flow value of ~$3B.

Growth outlook, capital allocation, and market positioning

• Combined company will operate over 600 locations, with leading presence in 11 of the top 20 rental regions and enhanced urban density in 7 of the top 10.

• Free cash flow expected to be 10%-15% of revenue on a normalized basis, with synergy realization being highly cash generative.

• Proceeds from Cinelease monetization will be used to pay down debt.

• Ample white space remains for future growth, both in product expansion and geographic reach, especially in fragmented markets.

• Proven track record with over $2B invested in 50+ acquisitions in four years, consistently generating ROIC above cost of capital.