Herc Rentals Q2 Revenue Up 35%

Herc Rentals has announced its Q2 financial results, highlighted by a 35.1 percent increase in equipment rental revenue.

Equipment rental revenue was $605.4 million and total revenues were $640.4 million in the second quarter of 2022, compared to $448.0 million and $490.9 million, respectively, for the same period last year. The company reported net income of $72.2 million, or $2.38 per diluted share, in the second quarter of 2022, compared to $47.1 million, or $1.55 per diluted share, in the same 2021 period. Second quarter 2022 adjusted net income was $74.8 million, or $2.47 per diluted share, compared to $47.6 million, or $1.57 per diluted share, in 2021.

"We continued to see strong demand for our equipment rental services across all of our geographic regions," said Larry Silber, president and CEO. "Our rental revenue increased 35.1 percent over the prior year, while average fleet increased 32.1 percent to $4.9 billion. Dollar utilization increased to 42.5 percent in the second quarter as market demand supported strong sequential and year-over-year rate growth. Adjusted EBITDA increased 36.8 percent to $284.2 million and adjusted EBITDA margin expanded 210 basis points to 44.4 percent in the quarter."

Key first half 2022 highlights:

Equipment rental revenue increased 33.5 percent to $1,132.2 million compared to $848.4 million in the prior-year period.
Total revenues increased 27.8 percent to $1,207.7 million compared to $944.7 million in the prior-year period. The year-over-year increase of $263.0 million was related to an increase in equipment rental revenue of $283.8 million, offset primarily by lower sales of rental equipment of $27.5 million. The reduction in sales of rental equipment resulted from strong rental demand and the strategic management of the fleet to maximize fleet size and minimize the sales of rental equipment.
Pricing increased 4.9 percent compared to the same period in 2021.

Source: Herc Rentals