Herc Holdings Inc. (HRI) SEC Filings & Earnings Calls

Fuel inflation pressuring margins

“Fuel inflation was a macroeconomic headwind; direct operating expenses as % of equipment rental revenue increased to 45.8% from 43.6%.”

Integration costs from H&E acquisition

“Operating expenses elevated due to H&E acquisition and related greenfields that take more time to mature.”

Higher interest expense from acquisition debt

“Interest expense increased to $126M from $86M due to new debt issued in June 2025 to fund H&E acquisition.”

Integration and synergy risk from H&E acquisition

“Direct operating expenses were 46.0% of equipment rental revenue in 2026, compared to 43.9% in the prior-year period. The increase as a percent of rental revenue is primarily related to the impact of the H&E acquisition and related greenfields that take more time to mature.” · word for word

Elevated leverage and interest expense

“Interest expense, net increased $40 million, or 47%, during the second quarter of 2026 when compared with the second quarter of 2025 due to the new debt issued to fund the H&E acquisition in June 2025.” · word for word

Local market demand moderation

“On a pro forma basis including the standalone, pre-acquisition results of H&E, equipment rental revenue was flat year-over-year primarily reflecting growth in average OEC on rent, partially offset by ongoing moderation in certain local markets where H&E's customer base had historically been more concentrated.” · word for word

High leverage from acquisition debt

“Total debt $7,985 million at March 31, 2026, with interest expense up 106% YoY.”

Integration risk from H&E acquisition

“Goodwill of $2,861 million and customer relationships intangible of $1,311 million subject to impairment risk.”

Net loss of $24M driven by acquisition-related costs including interest expense of $128M (up from $62M) and amortization of intangibles

“Net loss was $24 million ... Interest expense was $128 million compared with $62 million in the prior-year period, reflecting the new debt issued in June 2025 to fund the H&E acquisition.”

Operating expenses as % of equipment rental revenue elevated due to H&E acquisition and greenfield maturation

“Operating expenses as a percent of equipment rental revenue were elevated during the period primarily related to the impact of the H&E acquisition and related greenfields that take more time to mature.” · word for word

Integration Risk from H&E Acquisition

“REBITDA margin was primarily impacted in 2025 by acquisition-related redundant costs preceding integration.” · word for word

Elevated Interest Rate Environment

“Local markets continue to be impacted by the elevated interest rate environment and continued economic uncertainty” · word for word

Economic Uncertainty

“Local markets continue to be impacted by the elevated interest rate environment and continued economic uncertainty” · word for word

High leverage and debt service burden

“As of December 31, 2025, we had total outstanding debt of approximately $8.1 billion” · word for word

Interest rate exposure on floating-rate debt

“A significant portion of our indebtedness bears interest at floating rates” · word for word

Borrowing base fluctuation risk

“The amount of borrowings permitted at any time under our revolving credit facility is limited to a periodic borrowing base valuation of the collateral thereunder.” · word for word

Union labor disruption risk

“Failure to negotiate a new labor agreement when required could result in a work stoppage.” · word for word

Integration risk from H&E acquisition; lower utilization due to fleet optimization.

“Dollar utilization was 37.5% in the fourth quarter compared to 40.6% in the prior-year period, primarily due to lower utilization of the acquired fleet ahead of fleet optimization initiatives.” · word for word

Elevated operating expenses as a percentage of revenue due to integration costs and market moderation.

“Operating expenses as a percent of equipment rental revenue were elevated during the period due to lower fixed cost absorption as a result of the ongoing moderation in certain local markets and acquisition-related redundancies” · word for word

Higher interest expense from debt facilities for acquisition.

“Interest expense was $134 million compared with $67 million in the prior-year period, reflecting the new debt facilities issued in June 2025 to fund the H&E acquisition.” · word for word

Increased debt load from new issuance.

“Issuance of $1.2 billion in new notes increases total debt.”

Refinancing risk; new notes may have different terms; post-acquisition integration ongoing.

“proposed private offering of senior unsecured notes ... to redeem all $1,200 million ... of 5.50% Senior Notes due 2027” · word for word

Redemption conditional on completion of financing; if financing fails, notes remain outstanding.

“Redemption conditioned upon the completion of a financing on terms and conditions satisfactory to the Company.”

Acquisition integration costs and fleet optimization may continue to pressure near-term margins.

“Transaction expenses were $38 million; adjusted EBITDA margin declined to 42.3% from 46.2%.”

Higher interest expense from new debt facilities increases financial leverage.

“Interest expense was $134 million compared with $69 million in the prior-year period.” · word for word

Prolonged high interest rates tempering local market growth.

“Local market growth is tempered by prolonged high interest rates.” · word for word

Acquisition integration risk

“acquisition disruption at H&E, particularly within the salesforce, prior to the close of the acquisition has contributed to the year-over-year decline, however, through initiatives post-close, this has stabilized in the third quarter.” · word for word

Interest expense increase

“Interest expense, net increased $65 million, or 94%, during the third quarter of 2025 when compared with the third quarter of 2024 due to the new debt facilities issued to fund the H&E acquisition at a weighted average effective interest rate of 6.8%.” · word for word

Market demand moderation

“ongoing moderation in certain local markets where H&E's customer base was heavily concentrated.” · word for word