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false000136447900013644792024-04-232024-04-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2024
HERC HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Delaware 001-33139 20-3530539
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S Employer Identification No.)
27500 Riverview Center Blvd.
Bonita Springs, Florida 34134
(Address of principal executive offices and zip code)

(239) 301-1000
(Registrant's telephone number,
including area code)

N/A
(Former name or former address, if
changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of exchange on which registered
 Common Stock, par value $0.01 per share  HRI New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 23, 2024, Herc Holdings Inc. (the “Company”) issued a press release regarding its financial results for its first quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
On April 23, 2024, the Company will conduct an earnings webcast relating to the Company’s financial results for the first quarter of 2024. The earnings webcast will be made available to the public via a link on the Investor Relations section of the Company's website, IR.HercRentals.com, as well as via telephone dial-in, and the slides that will accompany the presentation will be available to the public at the time of the earnings webcast through the Company’s website. Certain financial information relating to completed fiscal periods that will be part of the earnings webcast is included in the set of slides that will accompany the earnings webcast, a copy of which is furnished as Exhibit 99.2 to this Form 8-K.
The information in this Form 8-K and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit
Number		 Description
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HERC HOLDINGS INC.
(Registrant)
By: /s/ MARK HUMPHREY
Name: Mark Humphrey
Title: Senior Vice President and Chief Financial Officer
Date:  April 23, 2024

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EX-99.1 2 herc2024q1pressrelease.htm EX-99.1 Document



Herc Holdings Reports Strong First Quarter 2024 Results and
Affirms 2024 Full Year Guidance


First Quarter 2024 Highlights
–Record first quarter total revenues of $804 million, an increase of 9%
–Net income decreased 3% to $65 million, or $2.29 per diluted share
–Adjusted EBITDA of $339 million increased 10%; adjusted EBITDA margin increased to 42.2%
–Rental pricing increased 5.1% year-over-year
–Added 15 new locations through M&A and greenfield openings
–Corporate credit rating upgraded by S&P Global to BB

Bonita Springs, Fla., April 23, 2024 -- Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended March 31, 2024.
“We are off to a strong start in 2024, achieving record first-quarter revenue and adjusted EBITDA margin as we continue to capitalize on key growth markets, like semiconductor, data centers, renewables and public infrastructure, while also investing in our network scale through greenfields and acquisitions, and elevating our higher-return specialty product lines,” said Larry Silber, president and chief executive officer of Herc Rentals. "Once again, our teams are delivering for customers both in the local markets and at the national level, capitalizing on our broad geographic coverage and strong demand for our products and services.

"We are making progress against each of our key 2024 priorities — enhancing our customer experience through our E3 business operating system, managing fleet efficiency and expenses with discipline, and scaling our network through greenfield locations and acquisitions in top 100 metropolitan markets," said Silber. "Based on this strong performance and current line-of-sight to market trends, we are affirming our annual performance targets, excluding Cinelease, of 7-10% year-over-year equipment rental revenue growth and adjusted EBITDA of $1.55 billion to $1.60 billion for 2024."

2024 First Quarter Financial Results

•Total revenues increased 9% to $804 million compared to $740 million in the prior-year period. The year-over-year increase of $64 million primarily related to an increase in equipment rental revenue of $65 million, reflecting positive pricing of 5.1% and increased volume of 8.0%, partially offset by unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by $2 million during the period.

•Dollar utilization was 39.7% in the first quarter, flat over the prior-year period.

•Direct operating expenses were $307 million, or 42.7% of equipment rental revenue, compared to $281 million, or 43.0% in the prior-year period, reflecting better cost performance and fixed cost absorption on higher revenue despite increases related to additional headcount, facilities and maintenance expenses associated with strong rental activity and an expanding branch network.

•Depreciation of rental equipment increased 5% to $160 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 12% to $29 million primarily due to amortization of acquisition intangible assets.


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•Selling, general and administrative expenses was $115 million, or 16.0% of equipment rental revenue, compared to $106 million, or 16.2% in the prior-year period due to continued focus on improving operating leverage while expanding revenues.

•Interest expense increased to $61 million compared with $48 million in the prior-year period due to increased borrowings on the ABL Credit Facility primarily to fund acquisition growth and invest in rental equipment and higher interest rates on floating-rate debt.

•Net income was $65 million compared to $67 million in the prior-year period. Adjusted net income decreased 3% to $67 million, or $2.36 per diluted share, compared to $69 million, or $2.35 per diluted share, in the prior-year period. The effective tax rate was 20% compared to 11% in the prior-year period.

•Adjusted EBITDA increased 10% to $339 million compared to $308 million in the prior-year period and adjusted EBITDA margin was 42.2% compared to 41.6% in the prior-year period. Continued focus on improving operating leverage while expanding revenues resulted in the improvement in margin year-over-year.

Rental Fleet

Net rental equipment capital expenditures were as follows (in millions):
Three Months Ended March 31,
2024 2023
Rental equipment expenditures $ 181  $ 332 
Proceeds from disposal of rental equipment (61) (49)
     Net rental equipment capital expenditures $ 120  $ 283 
•As of March 31, 2024, the Company's total fleet was approximately $6.4 billion at OEC.

•Average fleet at OEC in the first quarter increased 10% compared to the prior-year period.

•Average fleet age was 47 months as of March 31, 2024 and 2023.

Disciplined Capital Management

•The Company completed 4 acquisitions with a total of 11 locations and opened 4 new greenfield locations during the quarter.

•Net debt was $3.7 billion as of March 31, 2024, with net leverage of 2.5x which is unchanged from the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to $1.4 billion of liquidity as of March 31, 2024.

•The Company declared its quarterly dividend of $0.665, an increase of $0.0325 or 5%, paid to shareholders of record as of February 21, 2024 on March 7, 2024.



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Outlook

The Company is affirming its full year 2024 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges presented below, excluding Cinelease studio entertainment and lighting and grip equipment rental business. The guidance range for the full year 2024 adjusted EBITDA reflects an increase of 6% to 9% compared to full year 2023 results, excluding Cinelease. The sale process for the Cinelease studio entertainment business is ongoing.
Equipment rental revenue growth:
7% to 10%
Adjusted EBITDA:
$1.55 billion to $1.60 billion
Net rental equipment capital expenditures after gross capex:
$500 million to $700 million, after gross capex of $750 million to $1 billion

As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.

Earnings Call and Webcast Information

Herc Holdings' first quarter 2024 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at https://registrations.events/directory/international/itfs.html, using the access code: 9128891. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company.

Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com. The press release and presentation slides for the call will be posted to this section of the website prior to the call.

A replay of the conference call will be available via webcast on the Company website at IR.HercRentals.com, where it will be archived for 12 months after the call.

About Herc Holdings Inc.

Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 412 locations across North America, and 2023 total revenues were approximately $3.3 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Our ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shorting equipment as well as our ProContractor professional grade tools. We employ approximately 7,600 employees, who equip our customers and communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram, Facebook and LinkedIn.


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Certain Additional Information

In this release we refer to the following operating measures:
•Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA).

•OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date).

Forward-Looking Statements
This press release includes forward-looking statements as that term is defined by the federal securities laws, including statements concerning our business plans and strategy, projected profitability, performance or cash flows, future capital expenditures, our growth strategy, including our ability to grow organically and through M&A, anticipated financing needs, business trends, our capital allocation strategy, liquidity and capital management, exploring strategic alternatives for Cinelease, including the timing of the review process, the outcome of the process and the costs and benefits of the process, and other information that is not historical information. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
Information Regarding Non-GAAP Financial Measures
In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has provided certain information in this release that is not calculated according to GAAP (“non-GAAP”), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share and free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release.
(See Accompanying Tables)

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HERC HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In millions, except per share data)

Three Months Ended March 31,
  2024 2023
Revenues:
Equipment rental $ 719  $ 654 
Sales of rental equipment 69  71 
Sales of new equipment, parts and supplies 9  8 
Service and other revenue 7  7 
Total revenues 804  740 
Expenses:
Direct operating 307  281 
Depreciation of rental equipment 160  152 
Cost of sales of rental equipment 46  46 
Cost of sales of new equipment, parts and supplies 6  5 
Selling, general and administrative 115  106 
Non-rental depreciation and amortization 29  26 
Interest expense, net 61  48 
Other expense (income), net (1) 1 
Total expenses 723  665 
Income before income taxes 81  75 
Income tax provision (16) (8)
Net income $ 65  $ 67 
Weighted average shares outstanding:
Basic 28.3  29.0 
Diluted 28.4  29.4 
Earnings per share:
Basic $ 2.30  $ 2.31 
Diluted $ 2.29  $ 2.28 

A - 1



HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
March 31, 2024 December 31, 2023
ASSETS (unaudited)  
Cash and cash equivalents $ 63  $ 71 
Receivables, net of allowances 560  563 
Other current assets 67  77 
Current assets held for sale 27  21 
Total current assets 717  732 
Rental equipment, net 3,831  3,831 
Property and equipment, net 486  465 
Right-of-use lease assets 721  665 
Goodwill and intangible assets, net 1,033  950 
Other long-term assets 10  10 
Long-term assets held for sale 409  408 
Total assets $ 7,207  $ 7,061 
LIABILITIES AND EQUITY    
Current maturities of long-term debt and financing obligations $ 19  $ 19 
Current maturities of operating lease liabilities 37  37 
Accounts payable 201  212 
Accrued liabilities 194  221 
Current liabilities held for sale 23  19 
Total current liabilities 474  508 
Long-term debt, net 3,753  3,673 
Financing obligations, net 103  104 
Operating lease liabilities 705  646 
Deferred tax liabilities 750  743 
Other long term liabilities 48  46 
Long-term liabilities held for sale 66  68 
Total liabilities 5,899  5,788 
Total equity 1,308  1,273 
Total liabilities and equity $ 7,207  $ 7,061 

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HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In millions)
Three Months Ended March 31,
  2024 2023
Cash flows from operating activities:
Net income $ 65  $ 67 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of rental equipment 160  152 
Depreciation of property and equipment 19  17 
Amortization of intangible assets 10  9 
Amortization of deferred debt and financing obligations costs 1  1 
Stock-based compensation charges 5  4 
Provision for receivables allowances 12  13 
Deferred taxes 9  3 
Gain on sale of rental equipment (23) (25)
Other 3  2 
Changes in assets and liabilities:
Receivables (7) 13 
Other assets (6) (2)
Accounts payable (2) 8 
Accrued liabilities and other long-term liabilities (6) (27)
Net cash provided by operating activities 240  235 
Cash flows from investing activities:
Rental equipment expenditures (181) (332)
Proceeds from disposal of rental equipment 61  49 
Non-rental capital expenditures (30) (33)
Proceeds from disposal of property and equipment 2  3 
Acquisitions, net of cash acquired (148) (138)
Net cash used in investing activities (296) (451)
Cash flows from financing activities:
Proceeds from revolving lines of credit and securitization 385  640 
Repayments on revolving lines of credit and securitization (302) (347)
Principal payments under finance lease and financing obligations (5) (4)
Dividends paid (20) (20)
Repurchase of common stock —  (44)
Other financing activities, net (10) (23)
Net cash provided by financing activities 48  202 
Effect of foreign exchange rate changes on cash and cash equivalents —  — 
Net change in cash and cash equivalents during the period (8) (14)
Cash and cash equivalents at beginning of period 71  54 
Cash and cash equivalents at end of period $ 63  $ 40 

A - 3

HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA AND ADJUSTED EBITDA RECONCILIATIONS
Unaudited
(In millions)


EBITDA and adjusted EBITDA - EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction related costs, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments.

Adjusted EBITDA Margin - Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio.

Three Months Ended March 31,
2024 2023
Net income $ 65  $ 67 
Income tax provision 16  8 
Interest expense, net 61  48 
Depreciation of rental equipment 160  152 
Non-rental depreciation and amortization 29  26 
EBITDA 331  301 
Non-cash stock-based compensation charges 5  4 
Transaction related costs 3  2 
Other —  1 
Adjusted EBITDA $ 339  $ 308 
Total revenues $ 804  $ 740 
Adjusted EBITDA $ 339  $ 308 
Adjusted EBITDA margin 42.2  % 41.6  %

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HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA, ADJUSTED EBITDA AND ADJUSTED REBITDA
EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS
Unaudited
(In millions)

EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business.
Three Months Ended March 31, 2024 Three Months Ended March 31, 2023
Herc Studio Ex-Studio Herc Studio Ex-Studio
Equipment rental revenue $719  $29  $690  $654  $19  $635 
Total revenues 804  30  774  740  20  720 
Total expenses 723  21  702  665  28  637 
Income (loss) before income taxes 81  9  72  75  (8) 83 
Income tax (provision) benefit (16) (2) (14) (8) 2  (10)
Net income $65  $7  $58  $67  ($6) $73 
Income tax provision 16  2  14  8  (2) 10 
Interest expense, net 61  —  61  48  —  48 
Depreciation of rental equipment 160  —  160  152  8  144 
Non-rental depreciation and amortization 29  —  29  26  1  25 
EBITDA 331  9  322  301  1  300 
Non-cash stock-based compensation charges 5  —  5  4  —  4 
Transaction related costs 3  1  2  2  —  2 
Other —  —  —  1  1  — 
Adjusted EBITDA 339  10  329  308  2  306 
Less: Gain (loss) on sales of rental equipment 23  —  23  25  —  25 
Less: Gain (loss) on sales of new equipment, parts and supplies 3  1  2  3  —  3 
Rental Adjusted EBITDA (REBITDA) $313  $9  $304  $280  $2  $278 
Total revenues $804  $30  $774  $740  $20  $720 
Adjusted EBITDA $339  $10  $329  $308  $2  $306 
Adjusted EBITDA margin 42.2  % 33.3  % 42.5  % 41.6  % 10.0  % 42.5  %
Total revenues $804  $30  $774  $740  $20  $720 
Less: Sales of rental equipment 69  —  69  71  —  71 
Less: Sales of new equipment, parts and supplies 9  1  8  8  —  8 
Equipment rental, service and other revenues $726  $29  $697  $661  $20  $641 
Equipment rental, service and other revenues $726  $29  $697  $661  $20  $641 
Adjusted REBITDA $313  $9  $304  $280  $2  $278 
Adjusted REBITDA Margin 43.1  % 31.0  % 43.6  % 42.4  % 10.0  % 43.4  %

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HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE
Unaudited
(In millions)

Adjusted Net Income and Adjusted Earnings Per Diluted Share - Adjusted Net Income represents the sum of net income (loss), restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, transaction related costs, gain (loss) on the disposal of a business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business.

Three Months Ended March 31,
2024 2023
Net income $ 65  $ 67 
Transaction related costs 3  2 
Other —  1 
Tax impact of adjustments(1)
 (1) (1)
Adjusted net income $ 67  $ 69 
Diluted shares outstanding 28.4  29.4 
Adjusted earnings per diluted share $ 2.36  $ 2.35 
(1) The tax rate applied for adjustments is 25.5% in the three months ended March 31, 2024 and 25.7% in the three months ended March 31, 2023 and reflects the statutory rates in the applicable entities.



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HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
FREE CASH FLOW
Unaudited
(In millions)

Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.

Three Months Ended March 31,
2024 2023
Net cash provided by operating activities $ 240  $ 235 
Rental equipment expenditures (181) (332)
Proceeds from disposal of rental equipment 61  49 
Net rental equipment expenditures (120) (283)
Non-rental capital expenditures (30) (33)
Proceeds from disposal of property and equipment 2  3 
Free cash flow $ 92  $ (78)
Acquisitions, net of cash acquired (148) (138)
Increase in net debt, excluding financing activities $ (56) $ (216)

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EX-99.2 3 hercq12024earningspresen.htm EX-99.2 hercq12024earningspresen
Scaling for Sustainable Growth Q1 2024 EARNINGS CONFERENCE CALL April 23, 2024

 
Q1 2024Herc Holdings Inc. NYSE: HRI 2 Herc Rentals Team and Agenda Agenda Safe Harbor Q1 2024 Overview Q1 Operations Review Q1 Financial Review 2024 Outlook Q&A Larry Silber President & Chief Executive Officer Aaron Birnbaum Senior Vice President & Chief Operating Officer Mark Humphrey Senior Vice President & Chief Financial Officer Leslie Hunziker Senior Vice President Investor Relations, Communications & Sustainability

 
Q1 2024Herc Holdings Inc. NYSE: HRI 3 Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements as that term is defined by the federal securities laws, including statements concerning our business plans and strategy, projected profitability, performance or cash flows, future capital expenditures, our growth strategy, including our ability to grow organically and through M&A, anticipated financing needs, business trends, our capital allocation strategy, liquidity and capital management, exploring strategic alternatives for Cinelease, including the timing of the review process, the outcome of the process and the costs and benefits of the process, and other information that is not historical information. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward- looking statements are based upon our current expectations and various assumptions and, there can be no assurance that our current expectations will be achieved. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward- looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Information Regarding Non-GAAP Financial Measures In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has provided certain information in this presentation that is not calculated according to GAAP (“non-GAAP”), such as adjusted net income, adjusted earnings per diluted share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, REBITDA, REBITDA margin, REBITDA flow-through and free cash flow. Additionally, certain results are presented excluding the Cinelease studio entertainment business. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the appendix that accompanies this presentation.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 4 First Quarter 2024: Accelerating Performance 1. For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 20 2. The company’s ROIC metric uses after-tax operating income for the trailing 12 months divided by average stockholders’ equity, debt and deferred taxes, net of average cash. To mitigate the volatility related to fluctuations in the company’s tax rate from period to period, the U.S. federal corporate statutory tax rate of 21% was used to calculate after-tax operating income. Equipment Rental Revenue $387 $400 $527 $654 $719 2020 2021 2022 2023 2024 10% $ in millions Total Revenues $436 $453 $568 $740 $804 2020 2021 2022 2023 2024 Adjusted EBITDA¹ $147 $184 $237 $308 $339 2020 2021 2022 2023 2024 9% 10% $ in millions $ in millions Earnings Per Diluted Share $1.09 $1.92 $2.28 $2.29 Adjusted EBITDA Margin¹ 33.9% 40.7% 41.7% 41.6% 42.2% 2020 2021 2022 2023 2024 6.1% 6.3% 9.8% 10.6% 10.0% 2020 2021 2022 2023 2024 ROIC2 2020 2021 2022 2023 2024 $(0.13)

 
Q1 2024Herc Holdings Inc. NYSE: HRI 5 Q1 2024: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • Completed 4 acquisitions - 11 locations; opened 4 greenfield locations Enhance fleet mix • Expanded OEC specialty fleet YoY; completed largest trench shoring acquisition Support customers’ efficiency goals through data and telematics • Advanced our industry leading digital capabilities: ProControl Next Gen™ Prioritize Capital and Invest Responsibly • Continued disciplined investments in fleet and strategic M&A • Raised quarterly dividend 5% Lead through continuous improvement with E3OS • Standardized processes • Committed to superior customer experiences Strategies to Accelerate ROIC and Increase Shareholder Returns: Grow the Core Expand Specialty Elevate Technology Allocate Capital Execute at Highest Level

 
Q1 2024Herc Holdings Inc. NYSE: HRI 6 Operations Review Aaron Birnbaum Senior Vice President and Chief Operating Officer

 
Q1 2024Herc Holdings Inc. NYSE: HRI 7 Focusing on Safety 1Q 2024: Continuing focus on Perfect Days • All branches reported > 97% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations Total Recordable Incident Rate Improved to 0.76 —below 1.0 industry standard Proven safety record is a must-have for customers Herc's Safety Program is integrated into all acquisitions

 
Q1 2024Herc Holdings Inc. NYSE: HRI 8 Scaling for Sustainable Growth Expanding Through Acquisitions and Greenfields Adding locations increases density and share in urban markets • 412 locations at March 31, 2024, +13% YoY Targeting Top 100 metropolitan markets • 1Q:24: 4 acquisitions - 11 locations; 4 greenfield locations • 1Q:24: Invested $148 million YTD on M&A Synergized multiple opportunity 3.5x - 4.5x through cross selling adjacent product lines, fleet efficiencies and rate improvement Strategic M&A Opportunity ~$500 million per year Pipeline of acquisition opportunities remains strong

 
Q1 2024Herc Holdings Inc. NYSE: HRI 9 Optimizing Fleet Mix and Lifecycle Performance 1. Original equipment cost based on ARA guidelines. 2. End fleet as of March 31, 2024 $348 $400 $274 $196$167 2023 2024 Q1 Q2 Q3 Q4 Fleet Expenditures at OEC1 $ in millions $144 $186 $309 $174$150 2023 2024 Q1 Q2 Q3 Q4 Fleet Disposals at OEC1 $ in millions 24% 24% 11% 19% 22% • 1Q YoY net fleet investment declined $187M, reflecting 2024 return to normal seasonal quarterly cadence of fleet rotation ◦ Net investments ramp up 2Q, 3Q peaks, 4Q seasonal defleeting • 1Q:24 disposals generated proceeds of ~50% of OEC • Average age of disposals was 85 months in 1Q:24 • Average fleet age of 47 months at March 31, 2024 $6.4 billion at OEC1,2 Fleet Composition Specialty Aerial Earthmoving Material Handling Other

 
Q1 2024Herc Holdings Inc. NYSE: HRI 10 Delivering Growth and Resiliency through Diversification Q1 Local vs. National Mix 45% 55% NationalQ1 Revenue by Customer1 36% 28% 16% 14% 6% Local Commercial Facilities Contractors Infrastructure & Government Other Industrial • Local account revenue increased due to acquisitions and greenfields, and a focus on growth markets • National account revenue continues to benefit from general growth and mega project activity ◦ Vertical sales strategy provides for end-market expertise and creates more diverse revenue mix ◦ Project pipeline remains strong; still in early innings of federal-funding opportunities • Long-term, balanced target of 60% local / 40% national accounts 1. Refer to our 10-K for description of industries related to each customer classification.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 11 Capitalizing on Growth Trends Across Diverse Customer and Project Base Pipeline of new construction and maintenance projects offers wide spectrum of growth opportunities • Banks • Casinos • Hospitality (hotel & motel) • Parking Garages • Religious Building • Retail Facilities • Commercial Warehousing • Education • Facility Maintenance • Healthcare • Data Centers • Sporting Events • Theater • TV, Film & Radio • Homeowners • Live Events Contractors (36%) Industrial (28%) Commercial Facilities (14%) Other (6%) • Aerospace • Alternative • Automotive/EV • Energy/ Renewables • Food & Beverage • Agriculture • Chemical Processing • Industrial Manufacturing • Metals & Minerals • Oil & Gas Production • Oil & Gas Pipeline • Oil & Gas Refineries • Pharmaceutical • Power • Pulp. Paper & Wood • Shipbuilding/Yards • Electrical • General Contractors • Mechanical • Remediation & Environmental • Residential • Restoration • Specialty Contractors • Airports • Bridge • Federal Government • Local & State Government • Military Base • Prisons • Railroad & Mass Transportation • Streets, Road &Highway • Sewer & Waste Disposal • Water Supply & Distribution • Utilities Infrastructure & Gov. Direct (16%) Herc Rentals is Well Positioned with Current Trending Opportunities EV/Battery Chip Plants Data Centers LNG PlantRenewables Utilities Healthcare Infrastructure New verticals since 2016 in bold.

 
Financial Review Mark Humphrey Senior Vice President and Chief Financial Officer

 
Q1 2024Herc Holdings Inc. NYSE: HRI 13 Q1 2024 Financial Results 1. For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 20 2. REBITDA measures contribution from our core rental business without impact of sales of equipment, parts and supplies 3. Based on ARA guidelines Three Months Ended March 31, $ in millions, except per share data 2024 2023 2024 vs 2023 % Change Equipment Rental Revenue $719 $654 10% Total Revenues $804 $740 9% Net Income $65 $67 (3)% Earnings Per Diluted Share $2.29 $2.28 —% Adjusted Net Income1 $67 $69 (3)% Adjusted Earnings Per Diluted Share1 $2.36 $2.35 —% Adjusted EBITDA1 $339 $308 10% Adjusted EBITDA Margin1 42.2% 41.6% 60 bps REBITDA1,2 $313 $280 12% REBITDA Margin1,2 43.1% 42.4% 70 bps REBITDA YoY Flow-Through1,2 50.8% 42.6% 820 bps Average Fleet3 (YoY) 10.1% 29.3% Pricing3 (YoY) 5.1% 7.0% ROIC 10.0% 10.6% (60) bps

 
Q1 2024Herc Holdings Inc. NYSE: HRI 14 Q1 2024 Equipment Rental Revenue and Adjusted EBITDA Bridge Equipment Rental Revenue $654 $719 2023 Pricing OEC on Rent Ancillary Other Inflation Studio Entertainment 2024 Adjusted EBITDA $308 $339 2023 Equipment Rental Revenue Gain on Sale of Rental Equipment DOE SG&A Studio Entertainment Other 2024 Adjusted EBITDA Margin drivers: DOE and SG&A were positive contributors as both declined as a percent of rental revenue Pricing offset impact from fleet inflation within equipment rental revenue

 
Q1 2024Herc Holdings Inc. NYSE: HRI 15 Q1 2024 Financial Results Excluding Cinelease Studio Entertainment 1. For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 20 2. REBITDA measures contribution from our core rental business without impact of sales of equipment, parts and supplies 3. Based on ARA guidelines Three Months Ended March 31, $ in millions 2024 2023 2024 vs 2023 % Change Core Equipment Rental Revenue $690 $635 9% Core Total Revenues $774 $720 8% Core Net Income $58 $73 (21)% Core Adjusted EBITDA1 $329 $306 8% Core Adjusted EBITDA Margin1 42.5% 42.5% — bps Core REBITDA1,2 $304 $278 9% Core REBITDA Margin1,2 43.6% 43.4% 20 bps Core REBITDA YoY Flow-Through1,2 46.4% 47.7% (130) bps Core Average Fleet3 (YoY) 11.3% 29.3% Core ROIC 10.9% 11.2% (30) bps

 
Q1 2024Herc Holdings Inc. NYSE: HRI 16 Disciplined Capital Management 1. The AR Facility is excluded from current maturities of long-term debt as the Company has the intent and ability to consummate refinancing and extend the term of the agreement 2. Total liquidity includes cash and cash equivalents and the unused commitments under the ABL Credit Facility and AR Facility 3. For a definition and calculation, see the Appendix beginning on Slide 20 • No near-term maturities and ample liquidity2 of $1.4 billion provide financial flexibility • Free cash flow of $92 million for the first quarter • Net leverage3 of 2.5x, unchanged from December 2023 and within target range of 2.0x to 3.0x • Quarterly dividend increased by 5% to $0.665 per share, paid on March 7, 2024 to shareholders of record as of February 21, 2024 • Credit Ratings: S&P Upgraded HRI to BB Credit Ratings: Moody’s CFR Ba2 S&P BB/Stable Maturities As of March 31, 2024 $ in millions $1,200 $2,173 $325 2024 2025 2026 2027 $75 Finance Leases 2024-2031 Senior Unsecured Notes ABL Credit Facility AR Facility1

 
Q1 2024Herc Holdings Inc. NYSE: HRI 17 Continued Strength in Key End Markets 1. Source: ARA / IHS Global Insights as of February 2024 2. Source: IIR as of February 2024 3. Source: American Institute of Architects (AIA) as of March 2024 4. Source: Dodge Analytics U.S. as of March 2024 N.A. Equipment Rental Market1 $52 $57 $60 $55 $61 $69 $77 $83 $87 $90 $94 17 18 19 20 21 22 23 24E 25E 26E 27E $ in billions Industrial Spending2 $310 $317 $328 $309 $317 $352 $442 $436 $412 $406 $396 17 18 19 20 21 22 23 24E 25E 26E 27E $ in billions Non-Residential Starts4 $288 $298 $314 $260 $305 $445 $423 $441 $461 $487 $512 17 18 19 20 21 22 23E 24E 25E 26E 27E $ in billions — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Architecture Billings Index3 17 18 19 20 21 22 23 Jan-24 50 March 49.5

 
Q1 2024Herc Holdings Inc. NYSE: HRI 18 Affirming 2024 Guidance Excluding Cinelease Key Assumptions Full-Year 2024 excluding Cinelease: • Adjusted EBITDA assumption includes $550 to $650 million used fleet dispositions at OEC; 20-30% less YoY • Return to normal seasonal trend for used fleet dispositions • Mega projects continue to ramp through year • Strategic pricing expected to offset equipment inflation • Focusing on fleet efficiency • Beginning fleet of $6.0 billion at OEC • Shift to higher-return used-equipment retail and wholesale channels • Continued focus on operating leverage to improve margins • REBITDA Flow Through of ~50% expected • Tax rate ~25% Metric 2023 Excluding Cinelease 2024 Full Year Guidance Equipment Rental Revenue $2,820 million +7% to 10% Adjusted EBITDA $1,462 million $1.55 billion to $1.60 billion Net Rental Equipment Expenditures after Gross Capex $995 million $500 to $700 million after gross capex of $750 million to $1 billion

 
Q1 2024Herc Holdings Inc. NYSE: HRI 19 Purpose, Vision, Mission and Values We equip our customers and communities to build a brighter future

 
Appendix

 
Q1 2024Herc Holdings Inc. NYSE: HRI 21 Glossary of Terms Commonly Use in the Industry OEC: Original Equipment Cost which is an operating measure based on the guidelines of the American Rental Association (ARA), which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Fleet Age: The OEC weighted age of the entire fleet, based on ARA guidelines. Net Fleet Capital Expenditures: Capital expenditures of rental equipment minus the proceeds from disposal of rental equipment. Dollar Utilization ($ UT): Dollar utilization is an operating measure calculated by dividing equipment rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on ARA guidelines. Pricing: Change in pure pricing achieved in one period versus another period. This is applied both to year-over-year and sequential comparisons. Rental rates are based on ARA guidelines and are calculated based on the category class rate variance achieved either year-over-year or sequentially for any fleet that qualifies for the fleet base and weighted by the prior year revenue mix.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 22 Cinelease Studio Entertainment Assets Held for Sale Cinelease is Herc's studio management and lighting and grip business • Market preference for lighting and grip equipment to be part of studio ownership • Owning studio real estate does not align with Herc strategy • Lighting and grip equipment represents ~5% of OEC Cinelease sale process underway Herc Entertainment Services (HES) will continue to provide rentals to entertainment industry Equipment Types • aerial equipment, • forklifts, • carts, • generators, • climate solutions Cinelease assets held for sale HES to continue to service market Project Types • in-studio TV & Film productions • off-location TV & Film productions • live entertainment venues

 
Q1 2024Herc Holdings Inc. NYSE: HRI 23 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through EBITDA, Adjusted EBITDA, and REBITDA - EBITDA represents the sum of net income, provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction related costs, restructuring and restructuring related charges, spin-off costs, non-cash stock based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on disposal of a business and certain other items. REBITDA represents Adjusted EBITDA excluding the gain (loss) on sales of rental equipment and new equipment, parts and supplies. EBITDA, Adjusted EBITDA and REBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, none of these measures purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments. Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through - Adjusted EBITDA Margin (Adjusted EBITDA / Total Revenues) is a commonly used profitability ratio. REBITDA Margin (REBITDA / Equipment rental, service and other revenues) and REBITDA Flow- Through (the year-over-year change in REBITDA/the year-over-year change in Equipment rental, service, and other revenues) are useful operating profitability ratios to management and investors. EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - On slide 25, each metric has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 24 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through $ in millions Three Months Ended March 31, 2024 2023 Net income $65 $67 Income tax provision 16 8 Interest expense, net 61 48 Depreciation of rental equipment 160 152 Non-rental depreciation and amortization 29 26 EBITDA 331 301 Non-cash stock-based compensation charges 5 4 Transaction related costs 3 2 Other — 1 Adjusted EBITDA 339 308 Less: Gain (loss) on sales of rental equipment 23 25 Less: Gain (loss) on sales of new equipment, parts and supplies 3 3 Rental Adjusted EBITDA (REBITDA) $313 $280 Total revenues $804 $740 Less: Sales of rental equipment 69 71 Less: Sales of new equipment, parts and supplies 9 8 Equipment rental, service and other revenues $726 $661 Total revenues $804 $740 Adjusted EBITDA $339 $308 Adjusted EBITDA Margin 42.2 % 41.6 % Equipment rental, service and other revenues $726 $661 REBITDA $313 $280 REBITDA Margin 43.1 % 42.4 % YOY Change in REBITDA $33 YOY Change in Equipment rental, service and other revenues $65 YOY REBITDA Flow-Through 50.8 %

 
Q1 2024Herc Holdings Inc. NYSE: HRI 25 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through, Excluding Studio Entertainment $ in millions Three Months Ended March 31, 2024 2024 2023 Herc Studio Entertainment Herc, excl Studio Herc Studio Entertainment Herc, excl Studio Equipment rental revenue $719 $29 $690 $654 $19 $635 Total revenues 804 30 774 740 20 720 Total expenses 723 21 702 665 28 637 Income (loss) before income taxes 81 9 72 75 (8) 83 Income tax (provision) benefit (16) (2) (14) (8) 2 (10) Net income $65 $7 $58 $67 ($6) $73 Income tax provision 16 2 14 8 (2) 10 Interest expense, net 61 — 61 48 — 48 Depreciation of rental equipment 160 — 160 152 8 144 Non-rental depreciation and amortization 29 — 29 26 1 25 EBITDA 331 9 322 301 1 300 Non-cash stock-based compensation charges 5 — 5 4 — 4 Transaction related costs 3 1 2 2 — 2 Other — — — 1 1 — Adjusted EBITDA 339 10 329 308 2 306 Less: Gain (loss) on sales of rental equipment 23 — 23 25 — 25 Less: Gain (loss) on sales of new equipment, parts and supplies 3 1 2 3 — 3 Rental Adjusted EBITDA (REBITDA) $313 $9 $304 $280 $2 $278 Total revenues $804 $30 $774 $740 $20 $720 Less: Sales of rental equipment 69 — 69 71 — 71 Less: Sales of new equipment, parts and supplies 9 1 8 8 — 8 Equipment rental, service and other revenues $726 $29 $697 $661 $20 $641 Total revenues $804 $30 $774 $740 $20 $720 Adjusted EBITDA $339 $10 $329 $308 $2 $306 Adjusted EBITDA Margin 42.2 % 33.3 % 42.5 % 41.6 % 10.0 % 42.5 % Equipment rental, service and other revenues $726 $29 $697 $661 $20 $641 REBITDA $313 $9 $304 $280 $2 $278 REBITDA Margin 43.1 % 31.0 % 43.6 % 42.4 % 10.0 % 43.4 % YOY Change in REBITDA $33 $7 $26 $55 ($8) $63 YOY Change in Equipment rental, service and other revenues $65 $9 $56 $129 ($3) $132 YOY REBITDA Flow-Through 50.8 % 77.8 % 46.4 % 42.6 % 266.7 % 47.7 %

 
Q1 2024Herc Holdings Inc. NYSE: HRI 26 REBITDA Margin and Flow-Through Quarterly Trend $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Net income $67 $76 $113 $91 $347 $65 Income tax provision 8 27 33 32 100 16 Interest expense, net 48 54 60 62 224 61 Depreciation of rental equipment 152 161 167 163 643 160 Non-rental depreciation and amortization 26 28 29 29 112 29 EBITDA 301 346 402 377 1,426 331 Non-cash stock-based compensation charges 4 5 6 3 18 5 Transaction related costs 2 1 2 3 8 3 Other 1 — — (1) — — Adjusted EBITDA 308 352 410 382 1,452 339 Less: Gain (loss) on sales of rental equipment 25 27 25 17 94 23 Less: Gain (loss) on sales of new equipment, parts and supplies 3 3 4 3 13 3 Rental Adjusted EBITDA (REBITDA) $280 $322 $381 $362 $1,345 $313 Total revenues $740 $802 $908 $831 $3,282 $804 Less: Sales of rental equipment 71 83 124 68 346 69 Less: Sales of new equipment, parts and supplies 8 10 11 9 38 9 Equipment rental, service and other revenues $661 $709 $773 $754 $2,898 $726 REBITDA Margin 42.4 % 45.4 % 49.3 % 48.0 % 46.4 % 43.1 % YOY REBITDA Flow-Through 42.6 % 48.5 % 76.3 % 64.7 % 53.0 % 50.8 %

 
Q1 2024Herc Holdings Inc. NYSE: HRI 27 REBITDA Margin and Flow-Through Annual Trend $ in millions 2019 2020 2021 2022 2023 Net income $47 $74 $224 $330 $347 Income tax provision 16 20 67 104 100 Interest expense, net 174 93 86 122 224 Depreciation of rental equipment 410 403 420 536 643 Non-rental depreciation and amortization 62 63 68 95 112 EBITDA 709 653 865 1,187 1,426 Non-cash stock-based compensation charges 19 16 23 27 18 Restructuring 8 1 — — — Impairment 4 15 3 3 — Transaction related costs — — 4 7 8 Loss on disposal of business — 3 — — — Other 1 1 — 3 — Adjusted EBITDA 741 689 895 1,227 1,452 Less: Gain (loss) on sales of rental equipment (1) (5) 19 36 94 Less: Gain (loss) on sales of new equipment, parts and supplies 11 8 10 15 13 Rental Adjusted EBITDA (REBITDA) $731 $686 $866 $1,176 $1,345 Total revenues $1,999 $1,780 $2,073 $2,740 $3,282 Less: Sales of rental equipment 243 198 113 125 346 Less: Sales of new equipment, parts and supplies 44 28 31 36 38 Equipment rental, service and other revenues $1,712 $1,554 $1,929 $2,579 $2,898 REBITDA Margin 42.7 % 44.2 % 44.8 % 45.7 % 46.4 % YOY REBITDA Flow-Through 169.3 % 27.9 % 47.5 % 48.1 % 53.0 %

 
Q1 2024Herc Holdings Inc. NYSE: HRI 28 Reconciliation of Net Income and Adjusted Earnings Per Diluted Share $ in millions Three Months Ended March 31, 2024 2023 Net income $65 $67 Transaction related costs 3 2 Other — 1 Tax impact of adjustments(1) (1) (1) Adjusted net income $67 $69 Diluted common shares 28.4 29.4 Adjusted earnings per diluted share $2.36 $2.35 Adjusted Net Income and Adjusted Earnings Per Diluted Share - Adjusted Net Income represents the sum of net income, transaction related costs, restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, gain (loss) on the disposal of a business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. (1) The tax rate applied for adjustments is 25.5% in the three months ended March 31, 2024 and 25.7% in the three months ended March 31, 2023 and reflects the statutory rates in the applicable entities.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 29 Calculation of Net Leverage Ratio $ in millions Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Long-Term Debt, Net $3,215 $3,493 $3,665 $3,673 $3,753 (Plus) Current maturities of long-term debt 12 12 14 15 15 (Plus) Unamortized debt issuance costs 5 5 5 5 5 (Less) Cash and Cash Equivalents (40) (37) (71) (71) (63) Net Debt 3,192 3,473 3,613 3,622 3,710 Trailing Twelve-Month Adjusted EBITDA 1,298 1,366 1,431 1,452 1,483 Net Leverage 2.5 x 2.5 x 2.5 x 2.5 x 2.5 x Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The Company’s definition of this measure may differ from similarly titled measures used by other companies.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 30 Reconciliation of Free Cash Flow Three Months Ended March 31, Year Ended December 31, $ in millions 2024 2023 2023 2022 2021 Net cash provided by operating activities $240 $235 $1,086 $917 $743 Rental equipment expenditures (181) (332) (1,320) (1,168) (594) Proceeds from disposal of rental equipment 61 49 325 121 107 Net Fleet Capital Expenditures (120) (283) (995) (1,047) (487) Non-rental capital expenditures (30) (33) (156) (104) (47) Proceeds from disposal of property and equipment 2 3 15 7 5 Other — — (15) (23) — Free Cash Flow 92 (78) (65) (250) 214 Acquisitions, net of cash acquired (148) (138) (430) (515) (431) (Increase) decrease in Net Debt, excluding financing activities ($56) ($216) ($495) ($765) ($217) Free cash flow is not a recognized term under GAAP and should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP. Further, since all companies do not use identical calculations, our definition and presentation of this measure may not be comparable to similarly titled measures reported by other companies. Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non- discretionary expenditures.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 31 Historical Fleet at OEC1 $ in millions FY 2019 FY 2020 FY 2021 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Beginning Balance $3,777 $3,822 $3,589 $4,381 $5,637 $5,915 $6,211 $6,217 $5,637 $6,328 Expenditures 627 348 725 1,218 348 400 274 196 1,218 167 Disposals (593) (552) (281) (322) (144) (186) (309) (174) (813) (150) Acquisitions — 28 346 395 77 88 55 83 303 76 Foreign Currency / Other 11 (57) 2 (35) (3) (6) (14) 6 (17) (5) Ending Balance $3,822 $3,589 $4,381 $5,637 $5,915 $6,211 $6,217 $6,328 $6,328 $6,416 Proceeds as a percent of OEC 40.9 % 37.0 % 41.8 % 44.4 % 51.5 % 47.0 % 39.4 % 44.3 % 44.2 % 49.5 % 1. Original equipment cost based on ARA guidelines.

 
Q1 2024Herc Holdings Inc. NYSE: HRI 32 For additional information, please contact: Leslie Hunziker SVP Investor Relations, Communications & Sustainability leslie.hunziker@hercrentals.com 239-301-1675