Herc (NYSE:HRI) Announces Quarterly Earnings Results, Beats Expectations By $0.99 EPS

Posted by Francis Steltz on Oct 27th, 2026

Herc (NYSE:HRI – Get Free Report) issued its quarterly earnings data on Tuesday. The transportation company reported $3.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.92 by $0.99, FiscalAI reports. The firm had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Herc had a net margin of 1.01% and a return on equity of 10.33%. The business’s revenue was up 4.6% on a year-over-year basis. During the same period last year, the company earned $2.22 earnings per share.

Here are the key takeaways from Herc’s conference call:

Third-quarter performance was strong: equipment rental revenue rose nearly 12% on less than 2% average OEC fleet growth, while dollar utilization increased 360 basis points and adjusted REBITDA margin expanded to 44.2%.
Herc raised its full-year outlook, targeting approximately $4.513 billion of equipment rental revenue and $2.13 billion of adjusted REBITDA, both about 2% above prior guidance, supported by robust mega-project demand and growing revenue synergies.
Management plans to invest an additional roughly $150 million of net fleet CapEx, primarily in specialty equipment tied to identified, multi-year mega-project assignments; executives said the assets should begin contributing to REBITDA in the fourth quarter and strengthen the 2027 earnings base.
CEO Larry Silber will transition to executive chairman on January 1, 2027, with longtime executive Aaron Birnbaum becoming CEO; management characterized the change as a planned succession reflecting leadership continuity.
Core rental REBITDA margin declined 70 basis points to 45.2%, as operating-cost inflation, higher incentive compensation, and fuel and freight costs more than offset rental growth and pricing improvements. Local markets remain stable but commercial construction is still pressured by interest-rate sensitivity, while management said pricing has not yet fully offset inflation.

Herc Stock Performance

NYSE:HRI opened at $140.90 on Tuesday. The firm has a market cap of $4.71 billion, a PE ratio of 95.85 and a beta of 2.04. The company has a debt-to-equity ratio of 4.22, a quick ratio of 1.10 and a current ratio of 1.10. The business has a 50 day moving average price of $140.38 and a 200-day moving average price of $139.59. Herc has a fifty-two week low of $88.45 and a fifty-two week high of $188.35.

Herc Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd were given a $0.70 dividend. The ex-dividend date was Wednesday, September 2nd. This represents a $2.80 annualized dividend and a yield of 2.0%. Herc’s payout ratio is presently 190.48%.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on HRI shares. JPMorgan Chase & Co. raised Herc from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $165.00 to $175.00 in a research report on Thursday, September 10th. Weiss Ratings restated a “hold (c)” rating on shares of Herc in a research note on Monday. Zacks Research upgraded shares of Herc from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 14th. Citigroup reduced their price objective on shares of Herc from $175.00 to $150.00 and set a “buy” rating for the company in a research note on Monday, October 12th. Finally, Wells Fargo & Company decreased their target price on Herc from $218.00 to $176.00 and set an “overweight” rating on the stock in a research note on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Herc currently has a consensus rating of “Moderate Buy” and an average target price of $174.86.

View Our Latest Research Report on HRI

Herc Company Profile

(Get Free Report)

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.