Herc Rentals becomes latest US rental major to upgrade outlook

Herc Rentals is the third major rental business in the past month to increase its full-year guidance in its latest quarterly results.

The Florida-based company cited growth in its national accounts business, fueled by “robust mega project activity” as well as demand for its specialty rental products.

Earlier this month both EquipmentShare and United Rentals raised their outlooks for the full year 2026.

Herc Rentals will spend between $1.25 and $1.4 billion on fleet, gross, in 2026. (Photo: Herc Rentals)

Herc has significantly raised its expectations for gross capital expenditure on fleet this year, saying it will spend between US$1.25 billion and $1.4 billion. That is a 55% increase on the lower limit, which was previously $800 million.

Revenue for the second quarter was up 20% to $1.2 billion, driven by a 23% increase in rental revenues. It has a larger fleet post the H&E acquisition and more equipment on large projects.

Adjusted EBITDA increased 19% year-on-year to $487 million.

Larry Silber, CEO of Herc, said the integration of H&E was completed in the first quarter of the year; “Revenue synergies and cost synergies are tracking to plan. And while fuel inflation was a macroeconomic headwind in the quarter, we are taking additional actions to mitigate its impact.”

Silber said the H&E deal was well-timed given the growth in mega projects; “[it added] the scale, fleet capacity, talent and branch density to expand our role on large, complex projects and capture a greater share of this accelerating demand.”

He said momentum on multi-year projects gave the company a strong “line of sight” into the second half of the year.