10-Q · July 28, 2026
Herc reported Q2 revenue of $1.204 billion and GAAP diluted EPS of $0.57. Equipment rental revenue rose 23% to $1.072 billion and adjusted EBITDA increased 19% to $487 million, supporting increases in 2026…
Earnings analysis · 10-Q
HRI earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Herc reported third-quarter revenue of $1.364 billion and diluted EPS of $3.10, exceeding consensus estimates of $1.345 billion and $2.95, respectively. Adjusted EBITDA rose 9% to $603 million and its margin expanded to…
Read full summary
Herc reported third-quarter revenue of $1.364 billion and diluted EPS of $3.10, exceeding consensus estimates of $1.345 billion and $2.95, respectively. Adjusted EBITDA rose 9% to $603 million and its margin expanded to 44.2%. Management raised its 2026 revenue, adjusted EBITDA, and capital expenditure outlooks, supporting a bullish assessment despite continued exposure to interest rates, fuel prices, and other previously disclosed risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.1
What stood out
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Revenue beat consensus
Third-quarter revenue was $1.364 billion, up from $1.2 billion in 2026 Q2 and $1.3 billion in 2025 Q3. Revenue exceeded the $1.345 billion consensus estimate by approximately $19 million.
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EPS materially exceeded estimates
Diluted EPS was $3.10 versus the $2.95 consensus estimate, a beat of $0.15. EPS also improved from $0.57 in 2026 Q2 and $0.90 in 2025 Q3.
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EBITDA growth and margin expansion
Adjusted EBITDA increased 9% to $603 million, while adjusted EBITDA margin expanded to 44.2%, indicating stronger operating performance year over year.
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Full-year revenue outlook raised
The company raised 2026 equipment rental revenue guidance to $4.475-$4.550 billion from $4.375-$4.475 billion, with the midpoint increasing by $87.5 million.
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Higher planned fleet investment
Net rental equipment capital expenditure guidance increased to $1.0-$1.1 billion from $850-$950 million, while gross capital expenditure guidance rose to $1.45-$1.60 billion from $1.25-$1.40 billion.
What to watch
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Existing market risks remain
The filing states there have been no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K. It also states there were no material changes in market-risk disclosures as of September 30, 2026, leaving previously disclosed exposure to interest rates, foreign-exchange rates, and fuel prices unchanged.
Management's outlook
Management raised 2026 equipment rental revenue guidance to $4.475-$4.550 billion from $4.375-$4.475 billion, adjusted EBITDA guidance to $2.10-$2.15 billion from $2.05-$2.125 billion, net rental equipment capital expenditures to $1.0-$1.1 billion from $850-$950 million, and gross capital expenditures to $1.45-$1.60 billion from $1.25-$1.40 billion.
Earlier filings 4
10-Q · April 28, 2026
Herc reported Q1 2026 total revenue of $1,139 million, beating the consensus of $1,052,926,872 and increasing ~$278 million (32.3%) versus Q1 2025 revenue of $861 million. GAAP diluted loss was $(0.72) per share (miss…
10-K · February 17, 2026
Herc expanded scale in 2025 via the acquisition of H&E (adding ~160 locations and over 2,500 team members) and ended the year with a large rental fleet (original equipment cost $9.5 billion) and 602 locations in North…
10-K · February 13, 2025
Herc positions itself as a leading North American equipment rental provider with scale (451 locations) and an estimated 4% market share, supported by a $7.0 billion original equipment cost fleet (average age 46 months).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.