A North American equipment rental company, Herc Holdings rents out machinery like aerial lifts, earthmoving machines, power generators, and climate-control units to construction firms, manufacturers, governments, and even entertainment productions. It began in 1965 as Hertz Equipment Rental Corporation, the rental arm of the car-rental giant, and was spun off as an independent company in 2016. The name "Herc" is just an acronym for that original Hertz Equipment Rental Corporation — not a nod to the mythical strongman, though the coincidence fits.
Herc Holdings reports Q1 2026 net loss of $24M, affirms full-year guidance
Total revenues increased 32% to $1,139 million in Q1 2026, driven by a 33% increase in equipment rental revenue to $981 million.
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Net loss was $24 million ($0.72 per diluted share), compared to a net loss of $18 million ($0.63 per diluted share) in the prior-year period.
Adjusted EBITDA increased 33% to $448 million, with adjusted EBITDA margin flat at 39.3%.
Free cash flow nearly doubled to $94 million from $49 million in the prior-year period.
The company affirmed its full-year 2026 guidance: equipment rental revenue of $4.275-$4.4 billion, adjusted EBITDA of $2.0-$2.1 billion, and net rental equipment capital expenditures of $500-$800 million.
2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits
Herc Holdings director John M. Engquist will not stand for re-election at 2026 annual meeting
His decision was not due to any disagreement with the Company on matters relating to its operations, policies, or practices.
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On January 28, 2026, John M. Engquist informed the Board of Directors of his intent not to stand for re-election at the 2026 annual meeting of stockholders.
The departure is effective at the 2026 annual meeting, with no specific date provided in the filing.
5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
Herc Holdings issues $1.2B in new senior notes to redeem 2027 notes
Herc Holdings issued $600M of 5.750% senior notes due 2031 and $600M of 6.000% senior notes due 2034 under an Indenture dated December 16, 2025.
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Net proceeds, with other borrowings, were used to redeem all $1.2B of its outstanding 5.50% Senior Notes due 2027 at 100% plus accrued interest.
The new notes are senior unsecured obligations guaranteed by domestic subsidiaries, including Herc Rentals Inc.
The company also entered into Amendment No. 1 to its Credit Agreement, reducing interest rate margins to 1.75% for Term SOFR loans and 0.75% for Base Rate loans, effective December 10, 2025.
The 2027 Notes Indenture was satisfied and discharged following the redemption.
1.01 Entry into a Material Definitive Agreement · 1.02 Termination of a Material Definitive Agreement · 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement · 9.01 Financial Statements and Exhibits
On December 2, 2025, Herc Holdings priced $600 million of 5.750% senior unsecured notes due 2031 and $600 million of 6.000% senior unsecured notes due 2034.
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The notes will be guaranteed on a senior unsecured basis by the company's domestic subsidiaries, including Herc Rentals Inc.
Net proceeds, along with ABL credit facility borrowings, will be used to redeem all $1.2 billion of its 5.50% Senior Notes due 2027 and pay related fees and expenses.
The offering is expected to close on or about December 16, 2025, subject to customary conditions.
The notes were offered under Rule 144A and Regulation S and are not registered under the Securities Act.
8.01 Other Events · 9.01 Financial Statements and Exhibits