Herc says H&E integration now complete

Herc Rentals said the integration of H&E Equipment was completed in the first quarter of the year, with year-on-year revenues for the quarter 32% up at US$1.14 billion.

The company said it expected annual revenue synergies – additional sales beyond what the companies would have achieved independently – would be between $100 million and $120 million this year, while cost synergies will be around $125 million by the end of 2026.

EBITDA profit for the quarter was up 32.5% at $448 million, equating to an EBITDA margin of 39.3%.

Herc said it will spend in the range of $0.8bn to $1.1bn on new fleet in 2026.

Larry Silber, HERC’s chief executive officer, said the full integration of H&E was a “defining milestone” for the business; “we are already capturing the strategic benefits we anticipated: 25% more specialty locations, a stronger and deeper sales network, expanded share in local and regional accounts, and greater density in top metropolitan markets, where construction activity is most resilient.”

He said the demand environment was “constructive”, with stable local markets and strong national account activity, fueled by continued mega project growth.

“While we are mindful of broader macroeconomic uncertainties, including ongoing geopolitical tensions, we remain confident in our proven playbook: driving network efficiency through scale, delivering value through our broad product mix and expert solutions, accelerating customer efficiency and safety through ongoing enhancements to our ProControl platform, maintaining a sharp focus on productivity, and deploying capital with discipline”, said Silber.

The company said gross CapEx in fleet would be between $800 million and $1.1 billion during 2026, which compares to $1.1 billion in 2025.