Herc (HRI) Q2 2026 earnings summary

Executive summary

• Equipment rental revenue rose 23% year-over-year to $1,072 million in Q2 2026, driven by the H&E acquisition, mega project activity, and specialty fleet expansion.

• Net income for Q2 2026 was $19 million ($0.57 per diluted share), reversing a $35 million loss in Q2 2025; adjusted net income was $48 million ($1.43 per diluted share).

• Integration of H&E was completed, resulting in a 30% larger business by fleet, people, and locations, and ongoing focus on operational synergies and fleet optimization.

• Adjusted EBITDA increased 19% to $487 million, with a margin of 40.4%, slightly down due to fuel inflation.

• Free cash flow for the first half of 2026 nearly doubled to $202 million compared to the prior year.

Financial highlights

• Q2 2026 total revenues: $1,204 million (+20% YoY); equipment rental revenue: $1,072 million (+23% YoY).

• Adjusted EBITDA: $487 million (+19% YoY); margin 40.4% (down from 40.9%).

• Net income: $19 million vs. $35 million net loss in Q2 2025; adjusted net income: $48 million vs. $59 million prior year.

• Free cash flow for H1 2026: $202 million, nearly double the prior year.

• Quarterly dividend of $0.70 per share paid in Q2 2026.

Outlook and guidance

• Full-year 2026 guidance raised: equipment rental revenue now $4.375–$4.475 billion, adjusted EBITDA $2.05–$2.125 billion.

• Net rental equipment capex guidance increased to $850–$950 million; gross capex to $1.25–$1.4 billion.

• Free cash flow for 2026 expected in the $250 million–$350 million range, adjusted for strategic fleet investment.

• Growth expected from mega projects, fleet investment, and cross-selling opportunities.

• Fuel and transportation inflation expected to create about a 1-point margin headwind for the year.