$HRI

HERC HOLDINGS INC

CIK:0001364479|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues	$ 1,204	$ 1,002	$ 2,343	$ 1,863
Expenses:
Direct operating	491	379	944	706
Depreciation of rental equipment	242	195	484	367
Cost of sales of rental equipment	86	86	195	162
Cost of sales of new equipment, parts and supplies	8	10	17	18
Selling, general and administrative	155	127	301	245
Transaction expenses	3	73	8	147
Non-rental depreciation and amortization	75	45	148	78
Interest expense, net	126	86	254	148
Loss on assets held for sale	0	49	0	49
Other income, net	(6)	(2)	(9)	(3)
Total expenses	1,180	1,048	2,342	1,917
Income (loss) before income taxes	24	(46)	1	(54)
Income tax benefit (provision)	(5)	11	(6)	1
Net income (loss)	$ 19	$ (35)	$ (5)	$ (53)
Weighted average shares outstanding:
Basic (in shares)	33.4	30.0	33.4	29.2
Diluted (in shares)	33.5	30.0	33.4	29.2
Income (loss) per share:
Basic (in USD per share)	$ 0.57	$ (1.17)	$ (0.15)	$ (1.82)
Diluted (in USD per share)	$ 0.57	$ (1.17)	$ (0.15)	$ (1.82)
Equipment rental
Revenues:
Total revenues	$ 1,072	$ 870	$ 2,053	$ 1,609
Sales of rental equipment
Revenues:
Total revenues	110	106	248	211
Sales of new equipment, parts and supplies
Revenues:
Total revenues	12	17	25	28
Service and other revenue
Revenues:
Total revenues	$ 10	$ 9	$ 17	$ 15

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (5)	$ (53)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of rental equipment	484	367
Depreciation of property and equipment	65	47
Amortization of intangible assets	83	31
Amortization of deferred debt and financing obligations costs	6	3
Stock-based compensation charges	8	12
Provision for receivables allowances	51	31
Loss on assets held for sale	0	49
Deferred taxes	(11)	(58)
Gain on sale of rental equipment	(53)	(49)
Other	8	5
Changes in assets and liabilities, net of effects from acquisitions:
Receivables	(98)	3
Other assets	18	(14)
Accounts payable	21	(6)
Accrued liabilities and other long-term liabilities	14	44
Net cash provided by operating activities	591	412
Cash flows from investing activities:
Rental equipment expenditures	(557)	(421)
Proceeds from disposal of rental equipment	230	183
Non-rental capital expenditures	(82)	(80)
Proceeds from disposal of property and equipment	20	9
Acquisitions, net of cash acquired	0	(4,251)
Net cash used in investing activities	(389)	(4,560)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	3,467
Proceeds from revolving lines of credit and securitization	1,026	3,361
Repayments on revolving lines of credit and securitization	(1,170)	(2,645)
Principal payments under finance lease and financing obligations	(16)	(10)
Payment of debt issuance costs	0	(9)
Dividends paid	(47)	(41)
Net settlement on vesting of equity awards	(8)	(7)
Proceeds from employee stock purchase plan	4	2
Net cash provided by (used in) financing activities	(211)	4,118
Effect of foreign exchange rate changes on cash and cash equivalents	0	0
Net change in cash and cash equivalents during the period	(9)	(30)
Cash and cash equivalents at beginning of period	52	83
Cash and cash equivalents at end of period	43	53
Supplemental disclosure of cash flow information:
Cash paid for interest	232	119
Cash paid for income taxes, net	6	17
Supplemental disclosure of non-cash investing activity:
Purchases of rental equipment in accounts payable	139	47
Non-rental capital expenditures in accounts payable	0	6
Disposal of rental equipment in accounts receivable	0	12
Supplemental disclosure of non-cash investing and financing activity:
Issuance of common stock for H&E acquisition	0	584
Equipment acquired through finance lease	$ 23	$ 3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 43	$ 52
Receivables, net of allowances of $27 and $31, respectively	805	769
Prepaid expenses	52	72
Other current assets	60	63
Total current assets	960	956
Rental equipment, net	5,899	5,880
Property and equipment, net	863	868
Right-of-use lease assets	1,494	1,489
Intangible assets, net	1,599	1,665
Goodwill	2,859	2,873
Other long-term assets	43	45
Total assets	13,717	13,776
Current liabilities:
Current maturities of long-term debt and financing obligations	32	32
Current maturities of operating lease liabilities	57	56
Accounts payable	482	337
Accrued liabilities	300	305
Total current liabilities	871	730
Long-term debt, net	7,885	8,021
Financing obligations, net	93	95
Operating lease liabilities	1,491	1,479
Deferred tax liabilities	1,434	1,446
Other long-term liabilities	53	57
Total liabilities	11,827	11,828
Commitments and contingencies (Note 12)
Equity:
Preferred stock, $0.01 par value, 13.3 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value, 133.3 shares authorized, 38.3 and 38.2 shares issued and 33.4 and 33.3 shares outstanding	0	0
Additional paid-in capital	2,452	2,448
Retained earnings	496	547
Accumulated other comprehensive loss	(131)	(120)
Treasury stock, at cost, 4900000 shares and 4900000 shares	(927)	(927)
Total equity	1,890	1,948
Total liabilities and equity	$ 13,717	$ 13,776