A month has gone by since the last earnings report for Herc Holdings (HRI). Shares have added about 4.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Herc Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Herc Holdings Q1 Earnings Beat Estimates
Herc Holdings Inc. reported impressive first-quarter 2026 results wherein both earnings and revenues beat the Zacks Consensus Estimate.
Quarterly earnings per share of 21 cents beat the Zacks Consensus Estimate of a loss of $1.02 and declined 84% year over year. Revenues of $1.14 billion outpaced the Zacks Consensus Estimate of $1.01 billion and grew 32.3% year over year. The increase was driven by a 33% rise in equipment rental revenues, resulting from the larger fleet size after the H&E acquisition and higher volume from mega projects.
HRI’s Segmental Highlights
The equipment rental revenues of $981 million, accounting for 86% of total revenues, grew 32.8% year over year at the end of the first quarter of 2026. Sales of rental equipment increased 31.4% year over year to $138 million during the period, continuing to align the mix with customer demand.
Sales of new equipment, parts and supplies revenues totaled $13 million, increasing 18.2% year over year. Meanwhile, Service and other revenues grew 16.7% year over year to $7 million at the end of the March-end quarter.
Other Q1 Details of HRI
Total operating expenses in the reported quarter increased $293 million from the year-ago quarter to $1.6 billion.
Adjusted EBITDA increased 33% to $448 million compared to $338 million in the prior-year period, while adjusted EBITDA margin was flat year over year at 39.3%.
Herc Holdings exited the first quarter with cash and cash equivalents of $43 million compared with $52 million at 2025-end. Long-term debt was $7.96 billion compared with $8.02 billion at the prior-quarter end.
During the reported quarter, HRI declared its quarterly dividend of 70 cents and paid it to shareholders of record as of Feb. 18, 2026, on March 4, 2026.
Remaining Aspects of HRI’s 2026 Guidance
For the full-year 2026, Herc Holdings expects Equipment rental revenues to range from $4.275-$4.4 billion. The adjusted EBITDA is expected to be in the band of $2 - $2.1 billion.
Net rental equipment capital expenditures and Gross capex are anticipated to be between $500 million and $800 million and $800 million to $1.1 billion, respectively.
The H&E acquisition is expected to strengthen HRI’s market position through expanded specialty operations, enhanced sales capabilities and broader exposure to resilient metropolitan markets.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in estimates revision.
The consensus estimate has shifted 33.96% due to these changes.
VGM Scores
Currently, Herc Holdings has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Herc Holdings has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Herc Holdings is part of the Zacks Transportation - Equipment and Leasing industry. Over the past month, Ryder (R), a stock from the same industry, has gained 1.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Ryder reported revenues of $3.13 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $2.54 for the same period compares with $2.46 a year ago.
Ryder is expected to post earnings of $3.69 per share for the current quarter, representing a year-over-year change of +11.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Ryder. Also, the stock has a VGM Score of B.
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Herc Holdings Inc. (HRI): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).