Herc Boosts Rental Revenue by 24%

Herc Holdings reported fiscal 2021 rental revenue of $1.91 billion, up 23.8 percent over 2020 when revenue was $1.78 billion. Net income for the year was $224.1 million.

Total revenue was $2.07 billion for the year, up 16.4 percent. The company said they increase “was related primarily to an increase in equipment rental revenue of $366.7 million, partially offset by the reduction in sales of rental equipment of $85.4 million.”

The company reported the reduction of sales was a result of “the strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment.”

Net rental equipment capital expenditures for 2021 were $486.9 million. Gross rental equipment capital expenditures were $593.8 million compared to $344.1 million in the comparable prior-year period. Proceeds from disposals were $106.9 million compared to $192.5 million last year.

Total fleet value was approximately $4.4 billion at original equipment cost (OEC). Average fleet at OEC in the fourth quarter increased year-over-year by 14.9 percent compared to the prior-year period.

Average fleet age was 49 months as of December 31, 2021, compared to 46 months in the comparable prior-year period.

Source: Herc Holdings