HRI earnings analysis
What we found in HRI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Herc reported Q2 revenue of $1.204 billion and GAAP diluted EPS of $0.57. Equipment rental revenue rose 23% to $1.072 billion and adjusted EBITDA increased 19% to $487 million, supporting increases in 2026 rental-revenue and adjusted-EBITDA outlooks. The principal offset is a substantial step-up in anticipated net rental equipment capex to $850 million-$950 million, while the supplied filing text does not provide sufficient figures to quantify quarterly margins, balance-sheet changes, or free cash flow.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially and year over year
- Second-quarter revenue was $1.204 billion, up approximately $64 million (5.6%) from $1.140 billion in 2026Q1 and approximately $204 million (20.4%) from $1.000 billion in 2025Q2.
- Rental segment delivered 23% growth
- Equipment rental revenue reached $1.072 billion, increasing 23% year over year and supplying the principal driver of the $1.204 billion quarterly revenue total.
- Adjusted EBITDA grew to $487 million
- Adjusted EBITDA increased 19% year over year to $487 million, indicating earnings expansion alongside the 23% increase in equipment rental revenue.
- Full-year rental-revenue outlook raised
- Management raised 2026 equipment rental revenue outlook to $4.375 billion-$4.475 billion, from $4.275 billion-$4.400 billion previously.
- Adjusted EBITDA outlook increased
- The company increased its 2026 adjusted EBITDA outlook to $2.050 billion-$2.125 billion, from $2.000 billion-$2.100 billion previously.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP EPS missed consensus
- GAAP diluted EPS was $0.57, below the $0.66 consensus estimate, despite quarterly revenue of $1.204 billion.
- Higher capex raises cash-flow demands
- The increased capital plan calls for $850 million-$950 million of net rental equipment capex in 2026, versus prior guidance of $500 million-$800 million, raising funding and free-cash-flow execution requirements.
- No material risk-factor updates
- The 10-Q states that there were no material changes to risk factors disclosed in the 2025 Form 10-K as of June 30, 2026; therefore, the filing does not identify a newly changed or newly quantified risk factor.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.57
- Segment
- Equipment rental revenue: $1.072 billion, up 23% year over year.
What they said about what is next.
The company raised 2026 equipment-rental-revenue guidance to $4.375 billion-$4.475 billion and adjusted EBITDA guidance to $2.050 billion-$2.125 billion. It also increased planned net rental equipment capex to $850 million-$950 million. No GAAP EPS outlook was disclosed in the filing materials provided.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 28, 2026
- Herc reported Q1 2026 total revenue of $1,139 million, beating the consensus of $1,052,926,872 and increasing ~$278 million (32.3%) versus Q1 2025 revenue of $861 million. GAAP diluted loss was $(0.72) per share (miss…
- 10-K · February 17, 2026
- Herc expanded scale in 2025 via the acquisition of H&E (adding ~160 locations and over 2,500 team members) and ended the year with a large rental fleet (original equipment cost $9.5 billion) and 602 locations in North…
- 10-K · February 13, 2025
- Herc positions itself as a leading North American equipment rental provider with scale (451 locations) and an estimated 4% market share, supported by a $7.0 billion original equipment cost fleet (average age 46 months).…
- 10-Q · October 22, 2024
- Herc Holdings reported Q3 2024 revenue of $965 million and diluted EPS of $4.28. Revenue and margins improved year-over-year driven by equipment rental growth, resulting in operating margin expansion to 23.7%; the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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