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Herc Holdings Q3 revenue slightly beats on improved fleet efficiency

By Reuters News


Overview

  • U.S. equipment rental firm's Q3 revenue rose 5%, a slight beat versus analyst expectations

  • Adjusted EPS for Q3 was $3.91, beating analyst expectations

  • Company raised full-year 2026 revenue and adjusted EBITDA guidance


Outlook

  • Herc Holdings raises 2026 equipment rental revenue outlook to $4.475 bln-$4.55 bln

  • Company lifts 2026 adjusted EBITDA guidance to $2.10 bln-$2.15 bln

  • Herc Holdings now sees 2026 net rental equipment capex at $1.0 bln-$1.1 bln


Result Drivers

  • FLEET EFFICIENCY - Co attributed higher equipment rental revenue to improved fleet efficiency, disciplined deployment, pricing gains and specialty mix

  • MEGA-PROJECTS AND SPECIALTY - Co said robust mega-project volume and double-digit growth in specialty solutions business drove results

  • ACQUISITION SYNERGIES - Co said revenue synergies from H&E acquisition, specialty branch ramp-up and cross-selling contributed to Q3 growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$1.36 bln

$1.35 bln (7 Analysts)

Q3 Adjusted EPS

Beat

$3.91

$2.90 (8 Analysts)

Q3 Adjusted Net Income

$131 mln

Q3 Net Income

$104 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Herc Holdings Inc. is $170.00, about 33.7% above its October 26 closing price of $127.13

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 27 - UPS Q3 revenue rises 6.7%, lifts 2026 outlook

  • Oct 26 - Canada's Celestica Q3 revenue jumps 83% on higher customer demand, operating leverage; raises 2026 outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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