HERC Rental Revenue Jumps 36% in Q3
HERC reported record equipment rental revenue of $706.2 million for the third quarter, up 35.9 percent from the $519.6 million reported in the same period of 2021.
Total revenue for the company was $745.1 million, up 35.4 percent from $550.4 million. It raised its guidance for the year, including an increase in capital expenditures (capex) from a range of $900 million to $1.12 billion to a new range of $1.0 billion to $1.10 billion.
HERC capital expenditures
Net rental equipment capex for the third quarter was $774.6 million, up from $360.9 million in Q3 2021. Proceeds from disposals were $66.6 million, compared to $86.1 million in 2021. At the end of the quarter, total fleet value was $5.4 billion, 35 percent greater than the same period in 2021. Average fleet age was also up at the end of Q3, to 49 months from 48 months in 2021.
“Demand from our customers continues to be strong as we close out 2022,” Larry Silber, president/CEO, in a prepared statement. “We continue to benefit from tight equipment inventory and believe a secular shift from ownership to rental is accelerating. With the steady announcement of new industrial, alternative energy and infrastructure projects, we believe we are well-positioned to generate continued revenue growth in 2023 and beyond.”
The company said pricing increased 6.2 percent compared to Q3 2021.
Source: HERC