The massive adjusted EPS beat and reaffirmed guidance signal strong operational momentum post-HE acquisition. Expect positive price action today. Monitor upcoming quarterly results for continued margin improvement and debt reduction progress.
Price Chart
Executive Summary
Herc Holdings reported Q1 2026 adjusted EPS of $0.21, a massive beat vs consensus of -$1.01, on revenue of $1.139B (+7.5% beat). Equipment rental revenue grew 33% YoY driven by the HE acquisition. Full-year 2026 guidance was affirmed. The stock is likely to rally on the significant earnings surprise and reaffirmed outlook.
Key Financial Metrics
Key Facts
- Adjusted EPS $0.21 vs consensus -$1.01 (120.8% beat)
- Total revenue $1.139B vs consensus $1.06B (7.5% beat)
- Equipment rental revenue $981M, up 33% YoY
- Adjusted EBITDA $448M, up 33%, margin flat at 39.3%
- Full-year 2026 guidance affirmed: equipment rental revenue $4.275B-$4.4B, adjusted EBITDA $2.0B-$2.1B
- GAAP net loss of $24M ($0.72 loss per share) widened from $18M loss in prior year
- Free cash flow $94M, nearly doubled from $49M in prior year
- Net leverage 3.96x, high due to acquisition debt
Financial Impact
Adjusted EPS beat consensus by $1.22 (120.8%) and revenue beat by $79M (7.5%); guidance unchanged
Risk Factors
- High net leverage (3.96x) limits financial flexibility
- GAAP net loss persists due to acquisition-related costs
- Integration risks and macroeconomic uncertainty could impact demand
- Guidance not raised despite large beat, suggesting cautious outlook
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001364479-26-000084 |
| Document: herc2026q1-earningsprese.htm | 0001364479-26-000084 |
| Document: hri-20260428.htm | 0001364479-26-000084 |
| Document: 0001364479-26-000084-index-headers.html | 0001364479-26-000084 |
| Document: 0001364479-26-000084-index.html | 0001364479-26-000084 |
| Document: 0001364479-26-000084.txt | 0001364479-26-000084 |
| 8-K Data (Synthetic) | 0001364479-26-000084 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 5w ago | Insider Buy | $158.00 $144.07 | ▼ −8.82% | ▼ −10.13% | $137.15 (−13.19%) |
Aug 19, 2026 6w ago | 8-K | $168.10 $138.76 | ▼ −17.45% | ▼ −15.50% | $137.15 (−18.41%) |
Jul 28, 2026 9w ago | 8-K | $148.24 $156.09 | ▲ +5.30% | ▲ +1.91% | $137.15 (−7.48%) |
Apr 28, 2026 22w ago | 8-K | $133.28 $137.23 | ▲ +2.96% | ▼ −2.49% | $137.15 (+2.91%) |
Mar 27, 2026 27w ago | DEFA14A | $100.34 $124.61 | ▲ +24.19% | ▲ +11.45% | $137.15 (+36.69%) |
Feb 28, 2026 30w ago | Institutional Cluster | $140.91 $96.87 | ▼ −31.25% | ▼ −23.32% | $137.15 (−2.66%) |
US Market Status
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