Herc shifts to ‘high gear’
22 October 2021
Larry Silber, Herc Rentals CEO, said the business was shifting into ”high gear” after reporting a 20.5% increase in revenues to US$550.4 million for the three months to 30 September. Net profits rose 80% to $72.3 million.
The US rental business reported rental revenues up by 29.2% to $519.6 million driven by a 2.8% average price increase year-on-year and an increase in dollar utilisation to a record level of 46.0%, up from 37.6% in the same quarter last year.
Herc said it was seeing steady demand and a positive operating environment.
The company continues to expand its fleet, with gross rental equipment spending of $447.0 million in the first nine months of the year, an increase of 64%. Net fleet spending for the year will be between $500 and $550 million, rising to $820-1120 million next year.
“We shared our 2021 to 2024 annual goals for organic CAGR growth of 12% to 15% in rental revenue and 17% to 20% in adjusted EBITDA at our recent Investor Day,” said Silber.
“We have strong momentum and intend to invest in new locations, fleet and acquisitions to enhance our urban density and improve our operating leverage and scale.”