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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 22, 2025
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 22, 2025, Herc Holdings Inc. (the “Company”) issued a press release regarding its financial results for its first quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
On April 22, 2025, the Company will conduct an earnings webcast relating to the Company’s financial results for the first quarter of 2025. 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 22, 2025

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EX-99.1 2 herc2025q1-pressrelease.htm EX-99.1 Document


Herc Holdings Reports First Quarter 2025 Results and
Affirms 2025 Full Year Guidance

First Quarter 2025 Highlights
–Record equipment rental revenue of $739 million, an increase of 3%
–Record total revenues of $861 million, an increase of 7%
–Reported net loss of $18 million or $0.63 per share driven primarily by the H&E acquisition transaction costs
–Adjusted EBITDA of $339 million was flat year-over-year with adjusted EBITDA margin of 39.4%
–Free cash flow of $49 million for the three months ended March 31, 2025

Bonita Springs, Fla., April 22, 2025 -- Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended March 31, 2025.
“As expected, the 2025 operating landscape continues to be a tale of two disparate economic trends,” said Larry Silber, president and chief executive officer. “Our national account business is growing, fueled by federal and private funding for large construction projects like data centers, manufacturing onshoring and LNG facilities. At the same time, while facility maintenance, municipal, and infrastructure projects are supporting the local markets, other more interest-rate sensitive projects continue to be on hold, restricting overall local account growth.

“Against this uneven backdrop, Herc’s diversified business model helps drive resiliency,” said Silber. “With growth in mega project activity and incremental revenue benefits from last year’s acquisitions, we delivered financial results that were in line with our expectations for the seasonally low first quarter. And we remain on pace to outperform the overall equipment rental market again this year as Team Herc continues to identify opportunities to deliver value for our customers, while managing our fleet and capital strategically and with discipline.

“As it relates to the H&E acquisition, with the closing date targeted for mid-year, our operators and salesforce remain focused on running the day-to-day business, and our integration team is actively preparing for the migration of Herc systems and processes. We are excited to bring together two strong cultures that focus on growth and share priorities for customer service and safety.”

2025 First Quarter Financial Results

•Total revenues increased 7% to $861 million compared to $804 million in the prior-year period. The year-over-year increase of $57 million related to an increase in equipment rental revenue of $20 million, reflecting uneven demand across end markets and incremental revenue from prior year greenfields and acquisitions. Sales of rental equipment increased by $36 million during the period.

•Dollar utilization decreased to 37.6% in the first quarter compared to 39.7% in the prior-year period.

•Direct operating expenses were $327 million, or 44.2% of equipment rental revenue, compared to $307 million, or 42.7% in the prior-year period. The increase as a percent of rental revenue related to lower fixed cost absorption due to the normal seasonality associated with the first quarter, particularly facilities costs due to greenfield and acquisition locations and higher insurance costs year-over-year.


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•Depreciation of rental equipment increased 8% to $172 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 14% to $33 million primarily due to an increase in non-rental asset depreciation resulting from the growth of the business.

•Selling, general and administrative expenses were $118 million compared to $112 million in the prior-year period. As a percent of rental revenue, selling, general and administrative expenses were nearly flat year-over-year.

•Transaction expenses were $74 million compared to $3 million in the prior-year period. The increase related to costs incurred for the H&E acquisition, primarily a $64 million termination fee paid to United Rentals on behalf of H&E.

•Interest expense remained relatively flat at $62 million compared with $61 million in the prior-year period.

•Net loss was $18 million compared to net income of $65 million in the prior-year period. Adjusted net income decreased 45% to $37 million, or $1.30 per diluted share, compared to $67 million, or $2.36 per diluted share, in the prior-year period. The income tax provision in the first quarter was primarily driven by the non-deductible transaction costs related to the H&E acquisition.

•Adjusted EBITDA remained flat at $339 million and adjusted EBITDA margin was 39.4% compared to 42.2% in the prior-year period.

Rental Fleet
•Net rental equipment capital expenditures were as follows (in millions):
Three Months Ended March 31,
2025 2024
Rental equipment expenditures $ 187  $ 181 
Proceeds from disposal of rental equipment (94) (61)
Net rental equipment capital expenditures $ 93  $ 120 
•As of March 31, 2025, the Company's total fleet was approximately $6.9 billion at OEC.

•Average fleet at OEC in the first quarter increased 9% compared to the prior-year period.

•Average fleet age was 47 months as of March 31, 2025 and 2024.

Disciplined Capital Management
•The Company opened 3 new greenfield locations during the three months ended March 31, 2025.

•Net debt was $4.0 billion as of March 31, 2025, with net leverage of 2.5x unchanged from the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately $1.9 billion of liquidity as of March 31, 2025.

•The Company declared its quarterly dividend of $0.70, an increase of 5%, paid to shareholders of record as of February 18, 2025 on March 4, 2025.


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2025 Outlook—Excluding Cinelease
The Company is affirming its full year 2025 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges, excluding Cinelease studio entertainment and lighting and grip equipment rental business. The sale process for the Cinelease studio entertainment business is ongoing and a transaction is expected to be completed in 2025.
Equipment rental revenue growth:
4% to 6%
Adjusted EBITDA:
$1.575 billion to $1.650 billion
Net rental equipment capital expenditures:
$400 million to $600 million
Gross capex:
$700 million to $900 million
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 2025 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 2025 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 453 locations across North America, and 2024 total revenues were approximately $3.6 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.

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).

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Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. 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. You should not place undue reliance on the forward-looking statements. 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. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; and (10) our significant indebtedness; and (11) our ability to complete the acquisition of H&E Equipment Services, Inc. and our ability to realize the anticipated benefits of the proposed transaction. 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, free cash flow and certain results 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 supplemental schedules that accompany this release.

Contact:
Leslie Hunziker
Senior Vice President,
Investor Relations, Communications & Sustainability
Leslie.hunziker@hercrentals.com
239-301-1675

(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,
  2025 2024
Revenues:
Equipment rental $ 739  $ 719 
Sales of rental equipment 105  69 
Sales of new equipment, parts and supplies 11  9 
Service and other revenue 6  7 
Total revenues 861  804 
Expenses:
Direct operating 327  307 
Depreciation of rental equipment 172  160 
Cost of sales of rental equipment 76  46 
Cost of sales of new equipment, parts and supplies 8  6 
Selling, general and administrative 118  112 
Transaction expenses 74  3 
Non-rental depreciation and amortization 33  29 
Interest expense, net 62  61 
Other expense (income), net (1) (1)
Total expenses 869  723 
Income (loss) before income taxes (8) 81 
Income tax provision (10) (16)
Net income (loss) $ (18) $ 65 
Weighted average shares outstanding:
Basic 28.5  28.3 
Diluted 28.5  28.4 
Earnings (loss) per share:
Basic $ (0.63) $ 2.30 
Diluted $ (0.63) $ 2.29 

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HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
March 31, 2025 December 31, 2024
ASSETS (unaudited)  
Cash and cash equivalents $ 48  $ 83 
Receivables, net of allowances 554  589 
Prepaid expenses 69  47 
Other current assets 20  40 
Current assets held for sale 18  17 
Total current assets 709  776 
Rental equipment, net 4,085  4,225 
Property and equipment, net 567  554 
Right-of-use lease assets 869  852 
Intangible assets, net 564  572 
Goodwill 682  670 
Other long-term assets 8  8 
Long-term assets held for sale 221  220 
Total assets $ 7,705  $ 7,877 
LIABILITIES AND EQUITY    
Current maturities of long-term debt and financing obligations $ 22  $ 21 
Current maturities of operating lease liabilities 39  39 
Accounts payable 161  248 
Accrued liabilities 237  239 
Current liabilities held for sale 15  15 
Total current liabilities 474  562 
Long-term debt, net 4,026  4,069 
Financing obligations, net 99  101 
Operating lease liabilities 862  842 
Deferred tax liabilities 771  800 
Other long-term liabilities 57  47 
Long-term liabilities held for sale 58  60 
Total liabilities 6,347  6,481 
Total equity 1,358  1,396 
Total liabilities and equity $ 7,705  $ 7,877 

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HERC HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In millions)
Three Months Ended March 31,
  2025 2024
Cash flows from operating activities:
Net income (loss) $ (18) $ 65 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of rental equipment 172  160 
Depreciation of property and equipment 22  19 
Amortization of intangible assets 11  10 
Amortization of deferred debt and financing obligations costs 1  1 
Stock-based compensation charges 6  5 
Provision for receivables allowances 14  12 
Deferred taxes (29) 9 
Gain on sale of rental equipment (29) (23)
Other —  3 
Changes in assets and liabilities:
Receivables 20  (7)
Other assets (20) (6)
Accounts payable (18) (2)
Accrued liabilities and other long-term liabilities 39  (6)
Net cash provided by operating activities 171  240 
Cash flows from investing activities:
Rental equipment expenditures (187) (181)
Proceeds from disposal of rental equipment 94  61 
Non-rental capital expenditures (33) (30)
Proceeds from disposal of property and equipment 4  2 
Acquisitions, net of cash acquired (11) (148)
Net cash used in investing activities (133) (296)
Cash flows from financing activities:
Proceeds from revolving lines of credit and securitization 520  385 
Repayments on revolving lines of credit and securitization (561) (302)
Principal payments under finance lease and financing obligations (5) (5)
Dividends paid (21) (20)
Other financing activities, net (6) (10)
Net cash provided by (used in) financing activities (73) 48 
Effect of foreign exchange rate changes on cash and cash equivalents —  — 
Net change in cash and cash equivalents during the period (35) (8)
Cash and cash equivalents at beginning of period 83  71 
Cash and cash equivalents at end of period $ 48  $ 63 

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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,
2025 2024
Net income (loss) $ (18) $ 65 
Income tax provision 10  16 
Interest expense, net 62  61 
Depreciation of rental equipment 172  160 
Non-rental depreciation and amortization 33  29 
EBITDA 259  331 
Non-cash stock-based compensation charges 6  5 
Transaction related costs 74  3 
Adjusted EBITDA $ 339  $ 339 
Total revenues 861  804 
Adjusted EBITDA $ 339  $ 339 
Adjusted EBITDA margin 39.4  % 42.2  %


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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, 2025
Three Months Ended March 31, 2024
Herc Studio Ex-Studio Herc Studio Ex-Studio
Equipment rental revenue $ 739  $ 15  $ 724  $ 719  $ 29  $ 690 
Total revenues 861  17  844  804  30  774 
Total expenses 869  17  852  723  21  702 
Income (loss) before income taxes (8) —  (8) 81  9  72 
Income tax (provision) benefit (10) —  (10) (16) (2) (14)
Net income (loss) (18) —  (18) 65  7  58 
Income tax provision 10  —  10  16  2  14 
Interest expense, net 62  —  62  61  —  61 
Depreciation of rental equipment 172  —  172  160  —  160 
Non-rental depreciation and amortization 33  —  33  29  —  29 
EBITDA 259  —  259  331  9  322 
Non-cash stock-based compensation charges 6  —  6  5  —  5 
Transaction related costs 74  1  73  3  1  2 
Adjusted EBITDA 339  1  338  339  10  329 
Less: Gain (loss) on sales of rental equipment 29  1  28  23  —  23 
Less: Gain (loss) on sales of new equipment, parts and supplies 3  —  3  3  1  2 
Rental Adjusted EBITDA (REBITDA) $ 307  $ —  $ 307  $ 313  $ 9  $ 304 
Total revenues $ 861  $ 17  $ 844  $ 804  $ 30  $ 774 
Adjusted EBITDA $ 339  $ 1  $ 338  $ 339  $ 10  $ 329 
Adjusted EBITDA margin 39.4  % 5.9  % 40.0  % 42.2  % 33.3  % 42.5  %
Total revenues $ 861  $ 17  $ 844  $ 804  $ 30  $ 774 
Less: Sales of rental equipment 105  1  104  69  —  69 
Less: Sales of new equipment, parts and supplies 11  1  10  9  1  8 
Equipment rental, service and other revenues $ 745  $ 15  $ 730  $ 726  $ 29  $ 697 
Equipment rental, service and other revenues $ 745  $ 15  $ 730  $ 726  $ 29  $ 697 
Adjusted REBITDA $ 307  $ —  $ 307  $ 313  $ 9  $ 304 
Adjusted REBITDA margin 41.2  % —  % 42.1  % 43.1  % 31.0  % 43.6  %


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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,
2025 2024
Net income (loss) $ (18) $ 65 
Transaction related costs 74  3 
Tax impact of adjustments(1)
 (19) (1)
Adjusted net income $ 37  $ 67 
Diluted shares outstanding 28.5  28.4 
Adjusted earnings per diluted share $ 1.30  $ 2.36 
(1) The tax rate applied for adjustments is 25.5% 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,
2025 2024
Net cash provided by operating activities $ 171  $ 240 
Rental equipment expenditures (187) (181)
Proceeds from disposal of rental equipment 94  61 
Net rental equipment expenditures (93) (120)
Non-rental capital expenditures (33) (30)
Proceeds from disposal of property and equipment 4  2 
Free cash flow $ 49  $ 92 
Acquisitions, net of cash acquired (11) (148)
Decrease (increase) in net debt, excluding financing activities $ 38  $ (56)

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EX-99.2 3 herc2025q1-earningsprese.htm EX-99.2 herc2025q1-earningsprese
Scaling for Sustainable Growth Q1 2025 EARNINGS CONFERENCE CALL April 22, 2025

 
Q1 2025Herc Holdings Inc. NYSE: HRI 2 Herc Rentals Team and Agenda Agenda Safe Harbor Q1 2025 Overview Q1 Operations Review Q1 Financial Review 2025 Outlook Q&ALarry 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 2025Herc Holdings Inc. NYSE: HRI 3 Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. 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. You should not place undue reliance on the forward-looking statements. 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. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions;(10) our significant indebtedness; and (11) our ability to complete the acquisition of H&E Equipment Services, Inc. and our ability to realize the anticipated benefits of the proposed transaction. 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 2025Herc Holdings Inc. NYSE: HRI 4 Q1 2025: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • Executed merger agreement to acquire H&E Equipment Services; 160 locations • Opened 3 previously planned greenfield locations Enhance fleet mix • Focused on specialty fleet to support mega projects, cross-selling and end-market expansion Support customers’ efficiency goals through data and telematics • Advanced our industry leading digital capabilities: ProControl by Herc Rentals™ Prioritize Capital and Invest Responsibly • Continued disciplined investments in fleet • Declared regular dividend 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 2025Herc Holdings Inc. NYSE: HRI 5 Market and Transaction Updates • Demand Environment ◦ Local vs National • 2025 Tariff Implications ◦ Primarily domestic sourced • H&E Closing Timeline ◦ HSR ◦ S-4 Registration ◦ Tender Offer • H&E Integration Planning

 
Q1 2025Herc Holdings Inc. NYSE: HRI 6 Operations Review Aaron Birnbaum Senior Vice President and Chief Operating Officer

 
Q1 2025Herc Holdings Inc. NYSE: HRI 7 Focusing on Safety Continuing focus on Perfect Days • Q1 25 all branches reported > 96% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations Total TTM Recordable Incident Rate is 0.93 — favorable to industry standard of 1.0 Proven safety record is a must-have for customers Herc's Safety Program is integrated into all acquisitions

 
Q1 2025Herc Holdings Inc. NYSE: HRI 8 Delivering Growth and Resiliency through Diversification Q1 Local vs. National Revenue Mix 47% 53% NationalQ1 Revenue by Customer1 37% 26% 18% 14% 5% Local Commercial Facilities Contractors Infrastructure & Government Other Industrial • Local account revenue 53% of total vs 55% in 1Q24; local growth restricted by interest rate environment ◦ Infrastructure projects and recent acquisitions help offset slowdown in commercial sector • National account revenue continues to benefit from general growth and mega project activity ◦ Growth from mix of existing projects ramping up and new projects launching in 2025 ◦ Project pipeline remains strong; supported by private- and 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 2025Herc 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, 2025, includes Cinelease $167 $344 $366 $200 $74 2024 2025 Q1 Q2 Q3 Q4 Fleet Expenditures at OEC1 $ in millions $150 $139 $199 $235$234 2024 2025 Q1 Q2 Q3 Q4 Fleet Disposals at OEC1 $ in millions 24% 24% 11% 19% 22% • Focus on fleet efficiency: ◦ Disciplined expenditures for rotation, mega projects, specialty equipment ◦ Dispositions to align utilization and cull 2024 acquisition fleet • Q1 25 disposals generated proceeds of ~45% of OEC ◦ Strong execution of sales channel-management strategy ◦ Average age of fleet disposals in the quarter of 88 months • Average fleet age of 47 months at March 31, 2025 $6.9 billion at OEC1,2 Fleet Composition Specialty Aerial Earthmoving Material Handling Other

 
Q1 2025Herc Holdings Inc. NYSE: HRI 10 Continued Strength in Key End Markets 1.Source: IIR as of March 2025 2.Source: Dodge Analytics U.S. as of March 2025 3.Source: Dodge Analytics U.S. as of March 2025; mega project defined as total dollar value exceeding $250 million Industrial Spending1 $317 $328 $309 $298 $352 $457 $519 $503 $495 $471 $466 18 19 20 21 22 23 24 25E 26E 27E 28E $ in billions Non-Residential Starts2 $298 $314 $261 $305 $442 $417 $447 $482 $489 $518 $552 18 19 20 21 22 23 24 25E 26E 27E 28E $ in billions — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Infrastructure Starts2 $191 $212 $194 $209 $257 $303 $330 $357 $376 $390 $387 18 19 20 21 22 23 24 25E 26E 27E 28E $ in billions — — — — — — — — — — — — — — — — — — Mega Project Starts3 $228 $216 $547 23 24 25E $ in billions

 
Q1 2025Herc 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 • TV, Film & Radio • Live Events Contractors (37%) Industrial (26%) Commercial Facilities (14%) Other (5%) • 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 (18%) Herc Rentals is Well Positioned with Current Trending Opportunities EV/BatteryChip 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 2025Herc Holdings Inc. NYSE: HRI 13 Q1 2025 Financial Results * NM - Not Meaningful 1. For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 19 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 2025 2024 2025 vs 2024 % Change Equipment Rental Revenue $739 $719 2.8% Total Revenues $861 $804 7.1% Net Income (Loss) $(18) $65 (127.7)% Earnings Per Diluted Share $(0.63) $2.29 (127.5)% Adjusted Net Income1 $37 $67 (44.8)% Adjusted Earnings Per Diluted Share1 $1.30 $2.36 (44.9)% Adjusted EBITDA1 $339 $339 —% Adjusted EBITDA Margin1 39.4% 42.2% (280) bps REBITDA1,2 $307 $313 (1.9)% REBITDA Margin1,2 41.2% 43.1% (190) bps REBITDA YoY Flow-Through1,2 (31.6)% 50.8% NM* Average Fleet3 (YoY) 9.2% 10.1% Dollar Utilization3 37.6% 39.7% (210) bps ROIC 9.5% 10.0% (50) bps

 
Q1 2025Herc Holdings Inc. NYSE: HRI 14 Q1 2025 Financial Results Excluding Cinelease Studio Entertainment1 * NM - Not Meaningful 1. Results excluding the Cinelease studio entertainment business is referred to as "core" business. For a reconciliation to the most comparable GAAP financial measures, see the Appendix beginning on Slide 19 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 2025 2024 2025 vs 2024 % Change Core Equipment Rental Revenue $724 $690 4.9% Core Total Revenues $844 $774 9.0% Core Net Income ($18) $58 (131.0)% Core Adjusted EBITDA $338 $329 2.7% Core Adjusted EBITDA Margin 40.0% 42.5% (250) bps Core REBITDA2 $307 $304 1.0% Core REBITDA Margin2 42.1% 43.6% (150) bps Core REBITDA YoY Flow-Through2 9.1% 46.4% NM* Core Average Fleet3 (YoY) 9.7% 11.3% Core Dollar Utilization3 38.4% 40.2% (180) bps Core ROIC 9.8% 10.9% (110) bps

 
Q1 2025Herc Holdings Inc. NYSE: HRI 15 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 19 Maturities As of March 31, 2025 $ in millions $1,200 $800 $1,620 $359 2025 2026 2027 2028 2029 $75 Finance Leases 2025-2032 2027 Senior Unsecured Notes ABL Credit Facility AR Facility1 2029 Senior Unsecured Notes ABL Credit Facility Ample liquidity2 of $1.9 billion provides financial flexibility Net leverage3 of 2.5x, within target range of 2.0x to 3.0x Free cash flow of $49 million for first quarter 2025 Quarterly dividend increased 5% to $0.70 per share, paid on March 4, 2025 Credit Ratings: Moody's CFR Ba2; S&P BB March 2025 Moody's and S&P maintain corporate rating

 
Q1 2025Herc Holdings Inc. NYSE: HRI 16 Affirming 2025 Outlook (Excluding Cinelease) Key Assumptions for Full-Year 2025 excluding Cinelease: • Local markets remain relatively flat; prior-year acquisitions and mega projects drive growth • Fleet efficiency remains a priority • Net fleet capex supports replacement fleet, mega projects, specialty equipment growth • Used equipment market normalizing; continue the shift to higher-margin retail/wholesale sales channels • Expect to be free cash flow positive • Ongoing focus on operating leverage to improve margins • Interest expense roughly flat YoY, dependent on rate actions • Tax rate ~25%; expect to be first-time cash tax payer Metric 2024 Actual 2025 Guidance Equipment Rental Revenue 10% 4% to 6% Adjusted EBITDA $1.562 billion $1.575 billion to $1.650 billion Net Rental Equipment Expenditures $760 million $400 to $600 million Gross Capex $1.048 billion $700 to $900 million

 
Q1 2025Herc Holdings Inc. NYSE: HRI 17 Scaling Herc's Premier Platform for Superior Value Creation • Immediately accelerates Herc's proven strategy • Substantial revenue and cost synergies with superior cash flow conversion characteristics • Capital efficiency through optimization of fleet • Increase presence in key regions and enhanced geographic diversification • Leverage Herc's industry leading technologies • Shared commitment to excellence H&E Transaction Overview

 
Q1 2025Herc Holdings Inc. NYSE: HRI 18 Purpose, Vision, Mission and Values Purpose: We equip our customers and communities to build a brighter future

 
Appendix

 
Q1 2025Herc Holdings Inc. NYSE: HRI 20 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 2025Herc Holdings Inc. NYSE: HRI 21 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 ~4% 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 2025Herc Holdings Inc. NYSE: HRI 22 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 24, 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 2025Herc 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 Three Months Ended March 31, $ in millions 2025 2024 Net income (loss) $ (18) $ 65 Income tax provision 10 16 Interest expense, net 62 61 Depreciation of rental equipment 172 160 Non-rental depreciation and amortization 33 29 EBITDA 259 331 Non-cash stock-based compensation charges 6 5 Transaction related costs 74 3 Adjusted EBITDA 339 339 Less: Gain (loss) on sales of rental equipment 29 23 Less: Gain (loss) on sales of new equipment, parts and supplies 3 3 Rental Adjusted EBITDA (REBITDA) $ 307 $ 313 Total revenues $ 861 $ 804 Less: Sales of rental equipment 105 69 Less: Sales of new equipment, parts and supplies 11 9 Equipment rental, service and other revenues $ 745 $ 726 Total revenues $ 861 $ 804 Adjusted EBITDA $ 339 $ 339 Adjusted EBITDA Margin 39.4 % 42.2 % Equipment rental, service and other revenues $ 745 $ 726 REBITDA $ 307 $ 313 REBITDA Margin 41.2 % 43.1 % YOY Change in REBITDA $ (6) YOY Change in Equipment rental, service and other revenues $ 19 YOY REBITDA Flow-Through (31.6) %

 
Q1 2025Herc 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, Excluding Studio Entertainment Three Months Ended March 31, 2025 2024 $ in millions Herc Studio Entertainment Herc, excl Studio Herc Studio Entertainment Herc, excl Studio Equipment rental revenue $ 739 $ 15 $ 724 $ 719 $ 29 $ 690 Total revenues 861 17 844 804 30 774 Total expenses 869 17 852 723 21 702 Income (loss) before income taxes (8) — (8) 81 9 72 Income tax (provision) benefit (10) — (10) (16) (2) (14) Net income (loss) (18) — (18) 65 7 58 Income tax provision (benefit) 10 — 10 16 2 14 Interest expense, net 62 — 62 61 — 61 Depreciation of rental equipment 172 — 172 160 — 160 Non-rental depreciation and amortization 33 — 33 29 — 29 EBITDA 259 — 259 331 9 322 Non-cash stock-based compensation charges 6 — 6 5 — 5 Transaction related costs 74 1 73 3 1 2 Adjusted EBITDA 339 1 338 339 10 329 Less: Gain (loss) on sales of rental equipment 29 1 28 23 — 23 Less: Gain (loss) on sales of new equipment, parts and supplies 3 — 3 3 1 2 Rental Adjusted EBITDA (REBITDA) $ 307 $ — $ 307 $ 313 $ 9 $ 304 Total revenues $ 861 $ 17 $ 844 $ 804 $ 30 $ 774 Less: Sales of rental equipment 105 1 104 69 — 69 Less: Sales of new equipment, parts and supplies 11 1 10 9 1 8 Equipment rental, service and other revenues $ 745 $ 15 $ 730 $ 726 $ 29 $ 697 Total revenues $ 861 $ 17 $ 844 $ 804 $ 30 $ 774 Adjusted EBITDA $ 339 $ 1 $ 338 $ 339 $ 10 $ 329 Adjusted EBITDA Margin 39.4 % 5.9 % 40.0 % 42.2 % 33.3 % 42.5 % Equipment rental, service and other revenues $ 745 $ 15 $ 730 $ 726 $ 29 $ 697 REBITDA $ 307 $ — $ 307 $ 313 $ 9 $ 304 REBITDA Margin 41.2 % — % 42.1 % 43.1 % 31.0 % 43.6 % YOY Change in REBITDA $ (6) $ (9) $ 3 $ 33 $ 7 $ 26 YOY Change in Equipment rental, service and other revenues $ 19 $ (14) $ 33 $ 65 $ 9 $ 56 YOY REBITDA Flow-Through (31.6) % 64.3 % 9.1 % 50.8 % 77.8 % 46.4 %

 
Q1 2025Herc Holdings Inc. NYSE: HRI 25 REBITDA Margin and Flow-Through Quarterly Trend $ in millions Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Net income (loss) $ 65 $ 70 $ 122 $ (46) $ 211 $ (18) Income tax provision 16 23 38 3 80 10 Interest expense, net 61 63 69 67 260 62 Depreciation of rental equipment 160 165 174 180 679 172 Non-rental depreciation and amortization 29 30 33 35 127 33 EBITDA 331 351 436 239 1,357 259 Non-cash stock-based compensation charges 5 4 7 1 17 6 Transaction related costs 3 3 3 2 11 74 Loss on assets held for sale — — — 194 194 — Other — 2 — 2 4 — Adjusted EBITDA 339 360 446 438 1,583 339 Less: Gain (loss) on sales of rental equipment 23 20 15 29 87 29 Less: Gain (loss) on sales of new equipment, parts and supplies 3 4 3 3 13 3 Rental Adjusted EBITDA (REBITDA) $ 313 $ 336 $ 428 $ 406 $ 1,483 $ 307 Total revenues $ 804 $ 848 $ 965 $ 951 $ 3,568 $ 861 Less: Sales of rental equipment 69 65 81 96 311 105 Less: Sales of new equipment, parts and supplies 9 10 9 9 37 11 Equipment rental, service and other revenues $ 726 $ 773 $ 875 $ 846 $ 3,220 $ 745 REBITDA Margin 43.1 % 43.5 % 48.9 % 48.0 % 46.1 % 41.2 % YOY REBITDA Flow-Through 50.8 % 21.9 % 46.1 % 47.8 % 42.9 % (31.6)%

 
Q1 2025Herc Holdings Inc. NYSE: HRI 26 REBITDA Margin and Flow-Through Annual Trend $ in millions 2020 2021 2022 2023 2024 Net income $ 74 $ 224 $ 330 $ 347 $ 211 Income tax provision 20 67 104 100 80 Interest expense, net 93 86 122 224 260 Depreciation of rental equipment 403 420 536 643 679 Non-rental depreciation and amortization 63 68 95 112 127 EBITDA 653 865 1,187 1,426 1,357 Non-cash stock-based compensation charges 16 23 27 18 17 Restructuring 1 — — — — Impairment 15 3 3 — — Transaction related costs — 4 7 8 11 Loss on assets held for sale / disposal of business 3 — — — 194 Other 1 — 3 — 4 Adjusted EBITDA 689 895 1,227 1,452 1,583 Less: Gain (loss) on sales of rental equipment (5) 19 36 94 87 Less: Gain (loss) on sales of new equipment, parts and supplies 8 10 15 13 13 Rental Adjusted EBITDA (REBITDA) $ 686 $ 866 $ 1,176 $ 1,345 $ 1,483 Total revenues $ 1,780 $ 2,073 $ 2,740 $ 3,282 $ 3,568 Less: Sales of rental equipment 198 113 125 346 311 Less: Sales of new equipment, parts and supplies 28 31 36 38 37 Equipment rental, service and other revenues $ 1,554 $ 1,929 $ 2,579 $ 2,898 $ 3,220 REBITDA Margin 44.2 % 44.8 % 45.7 % 46.4 % 46.1 % YOY REBITDA Flow-Through 27.9 % 47.5 % 48.1 % 53.0 % 42.9 %

 
Q1 2025Herc Holdings Inc. NYSE: HRI 27 Reconciliation of Net Income and Adjusted Earnings Per Diluted Share Three Months Ended March 31, $ in millions 2025 2024 Net income (loss) $ (18) $ 65 Transaction related costs 74 3 Tax impact of adjustments(1) (19) (1) Adjusted net income $ 37 $ 67 Diluted common shares 28.5 28.4 Adjusted earnings per diluted share $ 1.30 $ 2.36 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% and reflects the statutory rates in the applicable entities.

 
Q1 2025Herc Holdings Inc. NYSE: HRI 28 Calculation of Net Leverage Ratio $ in millions Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Long-Term Debt, Net $ 3,753 $ 3,864 $ 4,163 $ 4,069 $ 4,026 (Plus) Current maturities of long-term debt 15 15 15 17 17 (Plus) Unamortized debt issuance costs 5 13 13 12 11 (Less) Cash and Cash Equivalents (63) (70) (142) (83) (48) Net Debt $ 3,710 $ 3,822 $ 4,049 $ 4,015 $ 4,006 Trailing Twelve-Month Adjusted EBITDA 1,483 1,491 1,527 1,583 1,583 Net Leverage 2.5 x 2.6 x 2.7 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 2025Herc Holdings Inc. NYSE: HRI 29 Reconciliation of Free Cash Flow Three Months Ended March 31, Year Ended December 31, $ in millions 2025 2024 2024 2023 2022 Net cash provided by operating activities $ 171 $ 240 $ 1,225 $ 1,086 $ 917 Rental equipment expenditures (187) (181) (1,048) (1,320) (1,168) Proceeds from disposal of rental equipment 94 61 288 325 121 Net Fleet Capital Expenditures (93) (120) (760) (995) (1,047) Non-rental capital expenditures (33) (30) (161) (156) (104) Proceeds from disposal of property and equipment 4 2 10 15 7 Other — — — (15) (23) Free Cash Flow 49 92 314 (65) (250) Acquisitions, net of cash acquired (11) (148) (600) (430) (515) (Increase) decrease in Net Debt, excluding financing activities $ 38 $ (56) $ (286) $ (495) $ (765) 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 2025Herc Holdings Inc. NYSE: HRI 30 Historical Fleet at OEC1 $ in millions FY 2020 FY 2021 FY 2022 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Beginning Balance $ 3,822 $ 3,589 $ 4,381 $ 5,637 $ 6,328 $ 6,416 $ 6,714 $ 7,088 $ 6,328 $ 7,044 Expenditures 348 725 1,218 1,218 167 344 366 200 1,077 74 Disposals (552) (281) (322) (813) (150) (139) (199) (235) (723) (234) Acquisitions 28 346 395 303 76 100 200 19 395 — Foreign Currency / Other (57) 2 (35) (17) (5) (7) 7 (28) (33) (5) Ending Balance $ 3,589 $ 4,381 $ 5,637 $ 6,328 $ 6,416 $ 6,714 $ 7,088 $ 7,044 $ 7,044 $ 6,879 Proceeds as a percent of OEC 37.0 % 41.8 % 44.4 % 44.2 % 49.5 % 47.9 % 42.4 % 42.4 % 44.9 % 44.8 % 1. Original equipment cost based on ARA guidelines.

 
Q1 2025Herc Holdings Inc. NYSE: HRI 31 For additional information, please contact: Leslie Hunziker SVP Investor Relations, Communications & Sustainability leslie.hunziker@hercrentals.com 239-301-1675