H&E Rentals Reports First Quarter 2025 Results
H&E Rentals reported challenging Q1 2025 results, with total revenues declining 14.0% to $319.5 million compared to Q1 2024. The company faced headwinds from weak local market demand and merger-related pressures.
Key financial highlights:
- Equipment rental revenues decreased 7.2% to $274.0 million
- Net loss of $6.2 million, with adjusted net income of $1.2 million excluding merger expenses
- Adjusted EBITDA fell 18.9% to $131.2 million
- Average rental rates declined 2.0% year-over-year
- Time utilization dropped to 60.3% from 63.6%
Despite challenges, H&E continued its branch expansion strategy, opening four locations in Q1 and one in Q2. The company remains optimistic about its planned merger with Herc Rentals, expecting enhanced operating resilience across broader markets and geographies upon completion.
H&E Rentals ha riportato risultati difficili nel primo trimestre del 2025, con un calo dei ricavi totali del 14,0% a 319,5 milioni di dollari rispetto al primo trimestre del 2024. L'azienda ha affrontato difficoltà dovute a una domanda locale debole e a pressioni legate alla fusione.
Punti finanziari chiave:
- I ricavi da noleggio attrezzature sono diminuiti del 7,2%, raggiungendo 274,0 milioni di dollari
- Perdita netta di 6,2 milioni di dollari, con un utile netto rettificato di 1,2 milioni di dollari escludendo le spese di fusione
- EBITDA rettificato in calo del 18,9% a 131,2 milioni di dollari
- I tassi medi di noleggio sono diminuiti del 2,0% su base annua
- L'utilizzo del tempo è sceso al 60,3% dal 63,6%
Nonostante le difficoltà, H&E ha proseguito la sua strategia di espansione delle filiali, aprendo quattro sedi nel primo trimestre e una nel secondo. L'azienda rimane ottimista riguardo alla fusione pianificata con Herc Rentals, prevedendo una maggiore resilienza operativa su mercati e territori più ampi al completamento dell'operazione.
H&E Rentals reportó resultados desafiantes en el primer trimestre de 2025, con ingresos totales que disminuyeron un 14,0% hasta 319,5 millones de dólares en comparación con el primer trimestre de 2024. La empresa enfrentó dificultades debido a una débil demanda local y presiones relacionadas con la fusión.
Puntos financieros clave:
- Los ingresos por alquiler de equipos disminuyeron un 7,2% hasta 274,0 millones de dólares
- Pérdida neta de 6,2 millones de dólares, con un ingreso neto ajustado de 1,2 millones de dólares excluyendo gastos de fusión
- EBITDA ajustado cayó un 18,9% hasta 131,2 millones de dólares
- Las tarifas promedio de alquiler bajaron un 2,0% interanual
- La utilización del tiempo cayó al 60,3% desde el 63,6%
A pesar de los desafíos, H&E continuó con su estrategia de expansión de sucursales, abriendo cuatro ubicaciones en el primer trimestre y una en el segundo. La empresa se mantiene optimista sobre su fusión planificada con Herc Rentals, esperando una mayor resiliencia operativa en mercados y geografías más amplias una vez completada.
H&E Rentals는 2025년 1분기 실적에서 어려움을 겪었으며, 2024년 1분기 대비 총매출이 14.0% 감소한 3억 1,950만 달러를 기록했습니다. 회사는 지역 시장 수요 부진과 인수합병 관련 압박에 직면했습니다.
주요 재무 하이라이트:
- 장비 임대 수익이 7.2% 감소한 2억 7,400만 달러
- 순손실 620만 달러, 인수합병 비용을 제외한 조정 순이익은 120만 달러
- 조정 EBITDA는 18.9% 감소한 1억 3,120만 달러
- 평균 임대 요율은 전년 대비 2.0% 하락
- 시간 활용률은 63.6%에서 60.3%로 하락
어려움에도 불구하고 H&E는 지점 확장 전략을 지속하여 1분기에 4곳, 2분기에 1곳을 신규 개설했습니다. 회사는 Herc Rentals와의 계획된 합병에 대해 낙관적이며, 합병 완료 시 더 넓은 시장과 지역에서 운영 탄력성이 강화될 것으로 기대하고 있습니다.
H&E Rentals a annoncé des résultats difficiles pour le premier trimestre 2025, avec un chiffre d'affaires total en baisse de 14,0 % à 319,5 millions de dollars par rapport au premier trimestre 2024. L'entreprise a été confrontée à des vents contraires liés à une faible demande locale et à des pressions liées à la fusion.
Points financiers clés :
- Les revenus de location d'équipements ont diminué de 7,2 % pour atteindre 274,0 millions de dollars
- Perte nette de 6,2 millions de dollars, avec un bénéfice net ajusté de 1,2 million de dollars hors frais de fusion
- L'EBITDA ajusté a chuté de 18,9 % pour s'établir à 131,2 millions de dollars
- Les tarifs moyens de location ont baissé de 2,0 % en glissement annuel
- L'utilisation du temps est passée de 63,6 % à 60,3 %
Malgré ces défis, H&E a poursuivi sa stratégie d'expansion des agences, ouvrant quatre sites au premier trimestre et un au deuxième trimestre. L'entreprise reste optimiste quant à sa fusion prévue avec Herc Rentals, anticipant une résilience opérationnelle renforcée sur des marchés et des zones géographiques plus larges une fois la fusion finalisée.
H&E Rentals meldete herausfordernde Ergebnisse für das erste Quartal 2025, mit einem Rückgang der Gesamtumsätze um 14,0 % auf 319,5 Millionen US-Dollar im Vergleich zum ersten Quartal 2024. Das Unternehmen sah sich Gegenwinden durch schwache lokale Marktnachfrage und fusionbedingte Belastungen ausgesetzt.
Wichtige finanzielle Highlights:
- Umsätze aus Gerätevermietung sanken um 7,2 % auf 274,0 Millionen US-Dollar
- Nettoverlust von 6,2 Millionen US-Dollar, mit einem bereinigten Nettogewinn von 1,2 Millionen US-Dollar ohne Fusionskosten
- Bereinigtes EBITDA fiel um 18,9 % auf 131,2 Millionen US-Dollar
- Durchschnittliche Mietraten gingen im Jahresvergleich um 2,0 % zurück
- Die Zeitauslastung sank von 63,6 % auf 60,3 %
Trotz der Herausforderungen setzte H&E seine Filialexpansionsstrategie fort und eröffnete im ersten Quartal vier Standorte sowie einen im zweiten Quartal. Das Unternehmen bleibt optimistisch hinsichtlich der geplanten Fusion mit Herc Rentals und erwartet nach Abschluss eine verbesserte operative Widerstandsfähigkeit in größeren Märkten und Regionen.
- Planned merger with Herc Rentals expected to close mid-2025, expanding market reach and operational resilience
- Branch expansion continues with 4 new locations in Q1 and 1 in Q2 2025
- Regular quarterly dividend of $0.275 maintained
- Rental fleet growth of 3.8% YoY to $2.9 billion
- Interest expense decreased to $16.0M from $18.4M YoY
- Revenue declined 14.0% to $319.5M YoY
- Net loss of $6.2M in Q1 2025 vs net income of $25.9M in Q1 2024
- Equipment rental revenues decreased 7.2% to $274.0M
- Rental rates declined 2.0% YoY and 1.3% sequentially
- Time utilization dropped to 60.3% from 63.6% YoY
- Dollar utilization decreased to 33.1% from 37.0%
- Gross margin declined to 38.7% from 44.4% YoY
- Rental gross margins decreased to 43.6% from 48.5%
- SG&A expenses as percentage of revenue increased to 34.9% from 30.8%
Insights
H&E reports significant financial deterioration with net loss, 14% revenue decline, and 95% drop in adjusted income amid weak market conditions.
H&E Equipment Services' Q1 2025 results reveal substantial deterioration across all key financial metrics. Revenues fell
The financial deterioration extends throughout the business. Adjusted EBITDA dropped
Operational metrics showed similar weakness. Time utilization decreased to
Despite these challenges, H&E maintained its quarterly dividend of
Q1 results reflect market weakness and merger disruption, with H&E pursuing branch expansion and Herc merger for long-term resilience.
H&E's Q1 performance explicitly reflects significant market challenges, with the company citing "weak local market demand" as a primary factor. The
The company specifically notes that "merger announcements in the quarter created pressure on the performance of the business," indicating operational disruption related to the pending Herc Rentals transaction. Despite these headwinds, H&E continued with branch expansion that was "already planned and underway," opening four locations in Q1 and one in early Q2.
Rental metrics clearly demonstrate market weakness: the
H&E maintains a fleet age advantage, with an average age of 43.2 months compared to the industry average of 49.3 months. The company views its planned merger with Herc Rentals, expected to close mid-year 2025, as strategic positioning to "elevate operating resiliency across a broader network of end markets, geographies, products and customer solutions," specifically noting this would be "advantageous when managing the slower phases of the business cycle."
BATON ROUGE, La., April 29, 2025 (GLOBE NEWSWIRE) -- H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”, d/b/a "H&E Rentals") today reported financial results for the first quarter ended March 31, 2025.
In the seasonally softer first quarter, which included one less calendar day, demand from local markets remained weak. In addition to the challenging demand trend, merger announcements in the quarter created pressure on the performance of the business. These factors contributed to a
The Company’s branch expansion strategy continued with only those openings that were already planned and underway for the first and second quarters, including four openings in the first quarter, followed by one opening so far in the second quarter. These openings, combined with our existing operations, allow H&E to compete more effectively for new business opportunities.
We believe the merger with Herc Rentals will further elevate operating resiliency across a broader network of end markets, geographies, products and customer solutions, which is advantageous when managing the slower phases of the business cycle. The Company remains enthusiastic about the merger and looks forward to an expected mid-year 2025 close of the transaction.
FIRST QUARTER 2025 SUMMARY WITH A COMPARISON TO FIRST QUARTER 2024
- Revenues declined
14.0% to$319.5 million compared to$371.4 million . - Net loss was
$6.2 million . Excluding transaction expenses, adjusted net income was$1.2 million compared to net income of$25.9 million . The effective income tax rate was24.1% , or27.4% adjusted for transaction expenses, and compared to26.5% . - Adjusted EBITDA totaled
$131.2 million , a decrease of18.9% compared to$161.7 million . Adjusted EBITDA margins were41.1% of revenues compared to43.6% . - Total equipment rental revenues were
$274.0 million , a decrease of$21.3 million , or7.2% , compared to$295.3 million . Rental revenues were$242.9 million , a decrease of$18.9 million , or7.2% , compared to$261.7 million . - Sales of rental equipment decreased
50.3% to$23.9 million compared to$48.1 million . - Total gross margin declined to
38.7% compared to44.4% . - Total equipment rental gross margins were
38.2% compared to43.3% . Rental gross margins were43.6% compared to48.5% . - Average time utilization (based on original equipment cost) was
60.3% compared to63.6% . The Company’s rental fleet, based on original equipment cost, closed the first quarter of 2025 at approximately$2.9 billion . - Average rental rates, excluding acquisitions completed over the last twelve months, declined
2.0% compared to the first quarter of 2024, and1.3% on a sequential quarterly basis. - Dollar utilization was
33.1% compared to37.0% . - Average rental fleet age on March 31, 2025, was 43.2 months compared to an industry average age of 49.3 months.
- Paid regular quarterly cash dividend of
$0.27 5 per share of common stock.
FINANCIAL DISCUSSION FOR FIRST QUARTER 2025
Revenue
Total revenues were
Gross Profit
Gross profit totaled
Rental Fleet
The original equipment cost of the Company’s rental fleet as of March 31, 2025 was approximately
Dollar utilization in the first quarter of 2025 was
Selling, General and Administrative Expenses
Selling, General, and Administrative ("SG&A") expenses for the first quarter of 2025 were
Income (Loss) from Operations
Loss from operations for the first quarter of 2025 was
Interest Expense
Interest expense was
Net Income (Loss)
Net loss in the first quarter of 2025 was
Adjusted EBITDA
Adjusted EBITDA in the first quarter of 2025 totaled
Non-GAAP Financial Measures
This press release contains certain non-GAAP (generally accepted accounting principles) measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share and the disaggregation of equipment rental revenues and cost of sales numbers) detailed below. EBITDA and Adjusted EBITDA are non-GAAP measures as defined under the rules of the Securities and Exchange Commission ("SEC"). We define Adjusted EBITDA for the periods presented as EBITDA adjusted for non-cash stock-based compensation expense and transaction expenses. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues.
We use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin in our business operations to, among other things, evaluate the performance of our business, develop budgets and measure our performance against those budgets. We also believe that analysts and investors use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures to evaluate a company’s overall operating performance. However, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin have material limitations as analytical tools and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. We consider them useful tools to assist us in evaluating performance because it eliminates items related to components of our capital structure, taxes and non-cash charges. The items that we have eliminated in determining EBITDA for the periods presented are interest expense, income taxes, depreciation of fixed assets (which includes rental equipment and property and equipment) and amortization of intangible assets. For Adjusted EBITDA, we eliminate non-cash items such as non-cash stock-based compensation expense and any other non-recurring items described above applicable to the particular period. However, some of these eliminated items are necessary to our business. For example, (i) interest expense is a necessary element of our costs and ability to generate revenue because we incur a significant amount of interest expense related to our outstanding indebtedness; (ii) payment of income taxes is a necessary element of our costs; (iii) depreciation is a necessary element of our costs and ability to generate revenue because rental equipment is the single largest component of our total assets and we recognize a significant amount of depreciation expense over the estimated useful life of this equipment; and (iv) stock compensation expense while non-cash, is an element of our costs. Any measure that eliminates components of our capital structure and costs associated with carrying significant amounts of fixed assets on our consolidated balance sheet has material limitations as a performance measure. In light of the foregoing limitations, we do not rely solely on EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as performance measures and also consider our GAAP results. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are not measurements of our financial performance or liquidity under GAAP and, accordingly, should not be considered alternatives to net income (loss), operating income (loss) or any other measures derived in accordance with GAAP. Because EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly titled measures used by other companies.
We use Adjusted Income (Loss) from Operations, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share ("Adjusted Income (Loss) Measures") in our business operations to, among other things, analyze our financial performance on a comparative period basis without the effects of significant one-time, non-recurring items. We define the Adjusted Income (Loss) Measures for the periods presented as Income (Loss) from Operations, Net Income (Loss) and Net Income (Loss) per Share, respectively, adjusted for transaction expenses. Additionally, we believe Adjusted Income (Loss) Measures, in combination with financial results calculated in accordance with GAAP, provide investors with useful information and additional perspective concerning future profitability. However, Adjusted Income (Loss) Measures are not measurements of our financial performance under GAAP and, accordingly, should not be considered in isolation or as alternatives to GAAP Income (Loss) from Operations, Net Income (Loss) and Net Income (Loss) per Share. Because Adjusted Income (Loss) Measures may not be calculated in the same manner by all companies, these measures may not be comparable to other similarly titled measures used by other companies.
We have presented in a supplemental schedule the disaggregation of our equipment rental revenues to provide further detail in evaluating the period over period performance of our rental business relative to equipment rental gross profit and equipment rental gross margin and believe these non-GAAP measures may be useful to investors for this reason. However, you should not consider this in isolation, or as substitutes for analysis of our results as reported under GAAP.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the financial tables accompanying this earnings release.
Conference Call
The Company will not hold a conference call to discuss first quarter 2025 reported results.
About H&E Rentals
Founded in 1961, H&E is one of the largest rental equipment companies in the nation. The Company’s fleet is comprised of aerial work platforms, earthmoving, material handling, and other general and specialty lines. H&E serves a diverse set of end markets in many high-growth geographies and has branches throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest and Mid-Atlantic regions.
Forward-Looking Statements
Statements contained in this press release that are not historical facts, including statements about H&E’s beliefs and expectations, are “forward-looking statements” within the meaning of the federal securities laws. Statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend,” “foresee” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) general economic and geopolitical conditions in North America and elsewhere throughout the globe and construction and industrial activity in the markets where we operate in North America; (2) our ability to forecast trends in our business accurately, and the impact of economic downturns and economic uncertainty on the markets we serve (including as a result of current uncertainty due to inflation and increasing interest rates); (3) the impact of conditions in the global credit and commodity markets and their effect on construction spending and the economy in general; (4) trends in oil and natural gas which could adversely affect the demand for our products and services; (5) our inability to obtain equipment and other supplies for our business from our key suppliers on acceptable terms or at all, as a result of supply chain disruptions, insolvency, financial difficulties, supplier relationships or other factors; (6) increased maintenance and repair costs as our fleet ages and decreases in our equipment’s residual value; (7) risks related to a global pandemic and similar health concerns, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response to the pandemic, material delays and cancellations of construction or infrastructure projects, labor shortages, supply chain disruptions and other impacts to the business; (8) our indebtedness; (9) risks associated with the expansion of our business and any potential acquisitions we may make, including any related capital expenditures, or our ability to consummate such acquisitions; (10) our ability to integrate any businesses or assets we acquire; (11) competitive pressures; (12) security breaches, cybersecurity attacks, increased adoption of artificial intelligence technologies, failure to protect personal information, compliance with data protection laws and other disruptions in our information technology systems; (13) adverse weather events or natural disasters; (14) risks related to climate change and climate change regulation; (15) compliance with laws and regulations, including those relating to environmental matters, corporate governance matters and tax matters, as well as any future changes to such laws and regulations; (16) our ability to complete the pending transaction as contemplated by the Agreement and Plan of Merger with Herc Holdings Inc., the parties’ ability to satisfy the conditions to the consummation of the cash tender offer and the other conditions set forth in the Merger Agreement; (17) risks associated with substantial costs and management resources required to consummate the exchange offer and merger; (18) the impact of certain interim covenants that we are subject to under the Herc Holdings Inc. Merger Agreement, including those that might discourage a potential third-party acquirer; (19) business uncertainties and contractual restrictions we are subject to during the pendency of the exchange offer and merger, that could disrupt our business and affect our relationships with existing and prospective employees, suppliers and other business partners; (20) risks associated with failure to consummate the merger; and (21) other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release, whether as a result of any new information, future events or otherwise. These statements are based on the current beliefs and assumptions of H&E’s management, which in turn are based on currently available information and important, underlying assumptions. Investors, potential investors, security holders and other readers are urged to consider the above-mentioned factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
| H&E EQUIPMENT SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (Amounts in thousands, except per share amounts) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Equipment rentals | $ | 274,032 | $ | 295,325 | ||||
| Sales of rental equipment | 23,919 | 48,115 | ||||||
| Sales of new equipment | 7,425 | 10,412 | ||||||
| Parts, service and other | 14,079 | 17,505 | ||||||
| Total revenues | 319,455 | 371,357 | ||||||
| Cost of revenues: | ||||||||
| Rental depreciation | 94,952 | 91,398 | ||||||
| Rental expense | 41,998 | 43,407 | ||||||
| Rental other | 32,286 | 32,623 | ||||||
| 169,236 | 167,428 | |||||||
| Sales of rental equipment | 9,803 | 17,829 | ||||||
| Sales of new equipment | 6,023 | 8,639 | ||||||
| Parts, service and other | 10,799 | 12,596 | ||||||
| Total cost of revenues | 195,861 | 206,492 | ||||||
| Gross profit | 123,594 | 164,865 | ||||||
| Selling, general and administrative expenses | 111,581 | 114,278 | ||||||
| Transaction expenses | 9,791 | — | ||||||
| Gain on sales of property and equipment, net | 3,623 | 1,433 | ||||||
| Income (loss) from operations | 5,845 | 52,020 | ||||||
| Other income (expense): | ||||||||
| Interest expense | (15,997 | ) | (18,366 | ) | ||||
| Other, net | 1,978 | 1,552 | ||||||
| Total other expense, net | (14,019 | ) | (16,814 | ) | ||||
| Income (loss) from operations before provision (benefit) for income taxes | (8,174 | ) | 35,206 | |||||
| Provision (benefit) for income taxes | (1,966 | ) | 9,317 | |||||
| Net income (loss) | $ | (6,208 | ) | $ | 25,889 | |||
| Net income (loss) per common share: | ||||||||
| Basic | $ | (0.17 | ) | $ | 0.72 | |||
| Diluted | $ | (0.17 | ) | $ | 0.71 | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 36,362 | 36,196 | ||||||
| Diluted | 36,362 | 36,562 | ||||||
| H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| Cash | $ | 10,322 | $ | 16,413 | ||||
| Rental equipment, net | 1,753,700 | 1,841,855 | ||||||
| Total assets | 2,678,060 | 2,795,530 | ||||||
| Total debt(1) | 1,368,385 | 1,453,311 | ||||||
| Total liabilities | 2,074,178 | 2,173,050 | ||||||
| Stockholders' equity | 603,882 | 622,480 | ||||||
| Total liabilities and stockholders' equity | $ | 2,678,060 | $ | 2,795,530 | ||||
| (1) | Total debt consists of the aggregate amounts on the senior unsecured notes, senior secured credit facility, and finance lease obligations. | |
| H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share amounts) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2025 | 2025 | |||||||||||
| As Reported | Adjustment | As Adjusted | ||||||||||
| Gross profit | $ | 123,594 | $ | — | $ | 123,594 | ||||||
| Selling, general and administrative expenses | 111,581 | — | 111,581 | |||||||||
| Transaction expenses | 9,791 | (9,791 | ) | (2) | — | |||||||
| Gain on sale of property and equipment, net | 3,623 | — | 3,623 | |||||||||
| Income (loss) from operations | 5,845 | 9,791 | 15,636 | |||||||||
| Interest expense | (15,997 | ) | — | (15,997 | ) | |||||||
| Other income, net | 1,978 | — | 1,978 | |||||||||
| Income (loss) from operations before provision (benefit) for income taxes | (8,174 | ) | 9,791 | 1,617 | ||||||||
| Provision (benefit) for income taxes | (1,966 | ) | 2,409 | 443 | ||||||||
| Net income (loss) | $ | (6,208 | ) | $ | 7,382 | $ | 1,174 | |||||
| Net Income (Loss) Per Common Share: | ||||||||||||
| Basic - Weighted average common shares outstanding: | 36,362 | 36,362 | 36,362 | |||||||||
| Basic - Net income (loss) per common share(1) | $ | (0.17 | ) | $ | 0.20 | $ | 0.03 | |||||
| Diluted - Weighted average common shares outstanding: | 36,362 | 36,735 | 36,735 | |||||||||
| Diluted - Net income (loss) per common share(1) | $ | (0.17 | ) | $ | 0.20 | $ | 0.03 | |||||
| (1) | Because of the method used in calculating per share data, the summation of the above per share data may not necessarily total to the as adjusted per share data. | |
| (2) | Adjustment relates to transaction expenses incurred. | |
| H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Income (Loss) | $ | (6,208 | ) | $ | 25,889 | |||
| Interest Expense | 15,997 | 18,366 | ||||||
| Provision (benefit) for income taxes | (1,966 | ) | 9,317 | |||||
| Depreciation | 108,199 | 101,898 | ||||||
| Amortization of intangibles | 2,598 | 2,487 | ||||||
| EBITDA | $ | 118,620 | $ | 157,957 | ||||
| Non-cash stock-based compensation expense | 2,811 | 3,788 | ||||||
| Transaction expense | 9,791 | — | ||||||
| Adjusted EBITDA | $ | 131,222 | $ | 161,745 | ||||
| H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| RENTAL | ||||||||
| Equipment rentals(1) | $ | 242,871 | $ | 261,741 | ||||
| Rental other | 31,161 | 33,584 | ||||||
| Total equipment rentals | 274,032 | 295,325 | ||||||
| RENTAL COST OF SALES | ||||||||
| Rental depreciation | 94,952 | 91,398 | ||||||
| Rental expense | 41,998 | 43,407 | ||||||
| Rental other | 32,286 | 32,623 | ||||||
| Total rental cost of sales | 169,236 | 167,428 | ||||||
| RENTAL REVENUES GROSS PROFIT | ||||||||
| Equipment rentals | 105,921 | 126,936 | ||||||
| Rentals other | (1,125 | ) | 961 | |||||
| Total rental revenues gross profit | $ | 104,796 | $ | 127,897 | ||||
| RENTAL REVENUES GROSS MARGIN | ||||||||
| Equipment rentals | 43.6 | % | 48.5 | % | ||||
| Rentals other | -3.6 | % | 2.9 | % | ||||
| Total rental revenues gross margin | 38.2 | % | 43.3 | % | ||||
| (1) | Pursuant to SEC Regulation S-X, the Company's equipment rental revenues are aggregated and presented in our unaudited condensed consolidated statements of operations in this press release as a single line item, “Equipment Rentals.” The above table disaggregates the Company's equipment rental revenues for discussion and analysis purposes only. | |
Contacts:
Leslie S. Magee
Chief Financial Officer
225-298-5261
lmagee@he-equipment.com
Jeffrey L. Chastain
Vice President of Investor Relations
225-952-2308
jchastain@he-equipment.com
FAQ
How much did H&E Rentals (HEES) revenue decline in Q1 2025?
What is the status of H&E Rentals merger with Herc Rentals in 2025?
What caused H&E Rentals (HEES) net loss in Q1 2025?
How much did H&E Rentals (HEES) rental rates change in Q1 2025?
What is H&E Rentals (HEES) Q1 2025 dividend payment?
What was H&E Rentals (HEES) equipment utilization rate in Q1 2025?
