The strong beat and raised guidance are a clear positive catalyst. Traders should watch for continued execution on HE acquisition synergies and mega-project momentum. The raised capex guidance ($850M-$950M net) signals management's confidence in demand, which could drive further upside if utilization continues to improve.
Price Chart
Executive Summary
Herc Holdings reported Q2 2026 adjusted EPS of $1.43, a 95% beat vs the $0.73 consensus, on total revenues of $1.204B (+20% YoY). The company raised its full-year 2026 guidance for equipment rental revenue to $4.375B-$4.475B and adjusted EBITDA to $2.05B-$2.125B, signaling confidence in post-HE acquisition momentum and robust mega-project demand. The strong beat and raised guidance are a clear positive catalyst for the stock.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted EPS of $1.43 beat consensus of $0.73 by 95%
- Total revenues of $1.204B increased 20% YoY, driven by 23% equipment rental revenue growth
- Full-year 2026 equipment rental revenue guidance raised to $4.375B-$4.475B (from $4.275B-$4.4B)
- Full-year 2026 adjusted EBITDA guidance raised to $2.05B-$2.125B (from $2.0B-$2.1B)
- Adjusted EBITDA of $487M increased 19% YoY with margin flat at 40.4%
- Dollar utilization improved to 39.3% from 38.3% in the prior-year period
- Net leverage improved to 3.95x from 3.96x in Q1 2026
- Free cash flow for the first half of 2026 was $202M, nearly double the $103M in the prior year
Financial Impact
EPS beat of $0.70 (95%) on consensus of $0.73; revenue beat of ~$74M (6.5%) on consensus of $1.13B; guidance raised by $100M-$175M at the midpoint for equipment rental revenue and $25M-$50M for adjusted EBITDA
Risk Factors
- Fuel inflation and transportation costs remain a headwind, pressuring margins
- Net leverage remains elevated at 3.95x, limiting financial flexibility
- Integration of the HE acquisition and realization of synergies carry execution risk
- Macroeconomic uncertainty and geopolitical tensions could impact construction spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001364479-26-000108 |
| Document: herc2026q2-earningsprese.htm | 0001364479-26-000108 |
| Document: hri-20260728.htm | 0001364479-26-000108 |
| Document: 0001364479-26-000108-index-headers.html | 0001364479-26-000108 |
| Document: 0001364479-26-000108-index.html | 0001364479-26-000108 |
| Document: 0001364479-26-000108.txt | 0001364479-26-000108 |
| 8-K Data (Synthetic) | 0001364479-26-000108 |
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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