Herc Holdings Inc. (NYSE:HRI) reported fourth-quarter 2024 sales growth of 14.4% year over year to $951 million, beating the analyst consensus estimate of $924.28 million.

Revenue growth was driven by $91 million in rental growth from 2.1% pricing and 11.6% volume increases. Adjusted EPS was $3.58, up from $3.24 but below the analyst consensus estimate of $3.94.

Direct operating expenses rose to $324 million (38.6% of rental revenue) from $287 million (38.4%).

Adjusted EBITDA grew 15% YoY to $438 million, with the margin slightly rising to 46.1% from 46.0%.

Net debt stood at $4 billion as of December 31, 2024, with 2.5x net leverage, unchanged from the prior year. Liquidity totaled $1.9 billion, including cash and unused ABL commitments.

Herc’s net cash provided by operating activities for fiscal 2024 totaled $1.225 billion, up from $1.086 billion a year ago. Free cash flow was $314 million.

As of Dec. 31, the company’s total fleet was $7 billion at OEC. Average fleet OEC was up 13% YoY in the quarter, and 11% for the year, while the average fleet age rose slightly to 46 months from 45 months. 

2025 Outlook (excluding Cinelease): Herc expects equipment rental revenue growth guidance of 4% – 6% and adjusted EBITDA of $1.575 billion – $1.650 billion.

The company sees net rental equipment capex of $400 million—$600 million and gross capex of $700 million—$900 million. It aims to expand market share through fleet investments, strategic acquisitions, and cross-selling, with the Cinelease sale expected to close in 2025.

Price Action: HRI shares are trading higher by 1.26% at $210.37 on the last check Thursday.

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