Herc’s momentum continues in Q1
20 April 2023
Herc Rentals has reported another record-breaking quarter, reporting total equipment rental revenue of $654 million, an increase of 24%, and record total revenues of $740 million, up 30%, for the three months ending March 31.
Larry Silber, president and CEO, said higher rental rates offset inflation while demand across the company’s end markets and regions is seasonally strong and “benefiting from the multi-year fiscal stimulus, re-shoring and mega projects, as well as long-term industrial maintenance contracts for on-site fleet management.”
Herc also upped its guidance range for the full year, with the company now expecting 18 to 26% growth over 2022’s full-year results, and expects CapEx to range between $1.0 to $1.2 billion. For the first quarter, the company made three acquisitions (for a total of six locations) while opening three new greenfields, as well.
Silber said, “While macro concerns are focused on residential and commercial construction, we have very diversified end markets, with growing share in manufacturing and reshoring projects, the private and government spend in infrastructure, as well as industrial MRO, which is required in all economic environments. Investments to capitalize on these opportunities are strategic and disciplined, whether it be in fleet, people or acquisitions. As a tenured market leader with a strong reputation, a comprehensive product and service offering, broad capabilities and one of the leading teams in the industry, we will continue to execute on our strategies to win new business and deliver profitable growth.”