No slowing down for Herc
By Lindsey Anderson20 October 2022
Herc Rentals has tacked on yet another record-breaking quarter, reporting a 36% increase in rental revenues for the three months ending Sept. 30 to $706.2 million. The company’s total revenues were up 35.4% to $745.1 million, as well.
“Demand from our customers continues to be strong as we close out 2022,” said Larry Silber, president and CEO. “We continue to benefit from tight equipment inventory and believe a secular shift from ownership to rental is accelerating. With the steady announcement of new industrial, alternative energy and infrastructure projects, we believe we are well-positioned to generate continued revenue growth in 2023 and beyond.”
Year-to-date, Herc has added 41 new locations across the U.S., 24 of which came via 16 acquisitions and 17 as greenfields.
The company said feet investments and new locations are contributing to growth in fast-growing urban markets. As a result, Herc has raised its full year net rental CapEx guidance to $1 billion to $1.1 billion (from the previous $900 million to $1.12 billion.) It also raised its full year 2022 adjusted EBITDA to $1.220 to $1.250 billion (from the previous $1.195 to $1.245 billion.)
As of September 30, the company’s total fleet was approximately $5.4 billion at OEC, up from $4.1 billion at OEC for the same period last year.
Looking to 2023, Herc said federally funded projects are forecasted to accelerate and the rental company also sees growth opportunities in mega projects and additional government and privately funded projects.