H&E revenues decline as it prepares for Herc merger

H&E Indio in California, US. (Photo: H&E)

H&E Rentals has said that a seasonally softer first quarter coupled with weak demand from local markets led to a 7.2% decline in equipment rental revenues, down to $274.0 million.

Total revenues for the company, which is being acquired by Herc Rentals in a $5.3 billion deal, fell by 14.0% to $319.5 million compared to $371.4 million.

Adjusted EBITDA totaled $131.2 million, a decrease of 18.9% compared to $161.7 million in 2024.

Loss from operations for the first quarter was $5.8 million, including transaction expenses of $9.8 million related to the planned merger with Herc.

H&E said that although merger announcements in the quarter created pressure on the performance of the business, it believes that the Herc merger will “further elevate operating resiliency across a broader network of end markets, geographies, products and customer solutions.”

Looking ahead, it said it remains enthusiastic about the deal and expects it to close by mid-2025.

Elsewhere, despite what it describes as a challenging environment, H&E continued its branch expansion strategy throughout the first quarter, limiting new openings to those already planned and underway for the first and second quarters.

This included four branch openings in Q1 in Florida, Georgia, Arkansas and St. Louis West respectively. 

The company, which also recently opened a second facility in Iowa, said the additions along with existing footprint would position it to compete more effectively for new business opportunities.

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