Herc Holdings Inc. · NYSE:HRI
Herc — Q4 2025 Earnings Presentation
29 slides from Herc's earnings presentation, Feb 17, 2026
Slide 1: Scaling for Sustainable Growth
Scaling for Sustainable Growth Q4 AND FULL YEAR 2025 EARNINGS CONFERENCE CALL February 17, 2026
Slide 2: Herc Rentals Team and Agenda
Herc Rentals Team and Agenda Agenda Safe Harbor FY 2025 Overview Q4 Operations Review Q4 Financial Review 2026 Outlook Larry Silber Aaron Birnbaum Mark Humphrey Leslie Hunziker Q&A Chief Executive Officer President Senior Vice President & Senior Vice President Chief Financial Officer Investor Relati
Slide 3: Safe Harbor Statements and Non-GAAP Financial Measures
Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section Further information on the risks that may affect our business is included in filings we 21E of the Securities Exchange Act, as amended
Slide 4: 2025 Overview
2025 Overview Larry Silber Chief Executive Officer Herc Holdings Inc. NYSE: HRI Q4 2025 4
Slide 5: Integration Progress Ramps Up
Integration Progress Ramps Up 4 Key Focus Areas for Seasonal Shoulder Periods: 1. Branch Network Optimization– Increasing specialty footprint by 25% • Q4:25 80% complete; synergy contribution ramps through '26 2. Fleet Optimization–Age, category classes, brands • Complete: Rightsized fleet and re-al
Slide 6: Focusing on Safety
Focusing on Safety Onboarded over 2,500 new team members into Herc Health & Safety programs Full Year 2025: Continuing focus on Perfect Days • All branches reported > 97% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations T
Slide 7: FY 2025: Delivering on Growth Strategies
FY 2025: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • Completed largest acquisition in industry, integration on track with strong execution Strategies to Accelerate • ~30% increase YoY in branch locations, adding density in the key Gulf Coast,
Slide 8: Financial Review
Financial Review Mark Humphrey Senior Vice President and Chief Financial Officer
Slide 9: Q4 and FY 2025 Financial Results
Q4 and FY 2025 Financial Results Three Months Ended December 31, Year Ended December 31, 2025 vs 2024 % 2025 vs 2024 % 2025 2024 2025 2024 $ in millions, except per share data Change Change Equipment Rental Revenue $1,039 $839 23.8% $3,770 $3,189 18.2% Total Revenues $1,209 $951 27.1% $4,376 $3,568
Slide 10: Optimizing Fleet Mix and Lifecycle Performance
Optimizing Fleet Mix and Lifecycle Performance 2025 Fleet Expenditures at OEC1 $9.5 billion at OEC1,2 $ in millions 2024 2025 Specialty Other $1,077 $1,077 21% 18% $344 $314 $366 $423 $266 Fleet $200 $167 $74 Composition 22% 26% Q1 Q2 Q3 Q4 FY Material Aerial Handling Fleet Disposals at OEC1,2 13% $
Slide 11: Disciplined Capital Management
Disciplined Capital Management Ample liquidity2 of $1.9B Maturities provides financial flexibility $2,047 As of December 31, 2025 $ in millions Net leverage3 of 3.95x New ABL Credit Facility Refinanced $1.2 billion 2027 Notes, extended maturity into 2034 Adjusted free cash flow3 of $521M for full ye
Slide 12: 2026 Outlook
2026 Outlook Metric 2025 Actual 2026 Guidance Equipment Rental Revenue $3.8 billion $4.275 billion to $4.4 billion Adjusted EBITDA $1.8 billion $2.0 billion to $2.1 billion Net Rental Equipment Expenditures $649 million $500 million to $800 million Gross Capex $1.1 billion $800 million to $1.1 billi
Slide 13: Operations Review
Operations Review Aaron Birnbaum President Herc Holdings Inc. NYSE: HRI Q4 2025 13
Slide 14: Operational Progress in 1H:26 Unlocks 2H:26 Growth Momentum
Operational Progress in 1H:26 Unlocks 2H:26 Growth Momentum 2H:25 1H:26 2H:26 Integration New Foundation Acceleration • Expanded regional management • 30% larger business by fleet, • 2026 growth-fleet onboarding & organizational design people, locations • New specialty locations gaining • Sales terr
Slide 15: Delivering Growth and Resiliency through Diversification
Delivering Growth and Resiliency through Diversification Contractors 38% 2025 Revenue 25% Industrial 2025 Local vs. Local 51% National 49% National by Customer1 5% Revenue Mix Other 14% 18% Commercial Facilities Infrastructure & Government • Local market expected stable - Infrastructure, government
Slide 16: Capitalizing on Growth Trends Across Diverse Customer Base
Capitalizing on Growth Trends Across Diverse Customer and Project Base Infrastructure Commercial Contractors (38%) Industrial (25%) Other (5%) & Gov. Direct (18%) Facilities (14%) • Electrical • Agriculture • Aerospace • Airports • Banks • Sporting Events • General Contractors • Chemical Processing
Slide 17: Continued Strength in Key End Markets
Continued Strength in Key End Markets Industrial Spending1 Mega Project Starts3 $ in billions $586 $575 $ in billions $652 $562 $562 $531 $542 $573 $527 $457 $290 $298 $352 $314 21 22 23 24 25 26E 27E 28E 29E 30E 23 24 25 26E Non-Residential Starts2 Infrastructure Starts2 $ in billions $386 $392 $ i
Slide 18: Purpose, Vision, Mission and Values
Purpose, Vision, Mission and Values Purpose: We equip our customers and communities to build a brighter future Herc Holdings Inc. NYSE: HRI Q4 2025 18
Slide 19: Appendix
Appendix oe a aw .
Slide 20: Glossary of Terms Commonly Use in the Industry
Glossary of Terms Commonly Use in the Industry OEC: Original Equipment Cost which is an operating measure based on the guidelines of the American Rental Association (ARA), which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs
Slide 21: Reconciliation of Net Income to Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through EBITDA, Adjusted EBITDA, and REBITDA—EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental e
Slide 22: Reconciliation of Net Income to Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through Three Months Ended December 31, Year Ended December 31, $ in millions 2025 2024 2025 2024 Net income (loss) $ 24 $ (46) $ 1 $ 211 Income tax (benefit) provision (7) 3 — 8
Slide 23: REBITDA Margin and Flow-Through Quarterly Trend
REBITDA Margin and Flow-Through Quarterly Trend $ in millions Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Net income (loss) $ 65 $ 70 $ 122 $ (46) $ 211 $ (18) $ (35) $ 30 $ 24 $ 1 Income tax provision (benefit) 16 23 38 3 80 10 (11) 8 (7) — Interest expense, net
Slide 24: REBITDA Margin and Flow-Through Annual Trend
REBITDA Margin and Flow-Through Annual Trend $ in millions 2020 2021 2022 2023 2024 2025 Net income $ 74 $ 224 $ 330 $ 347 $ 211 $ 1 Income tax provision 20 67 104 100 80 — Interest expense, net 93 86 122 224 260 416 Depreciation of rental equipment 403 420 536 643 679 856 Non-rental depreciation an
Slide 25: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share Adjusted Net Income and Adjusted Earnings Per Diluted Share—Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and restructuring related charges, spin-off costs, loss on exting
Slide 26: Calculation of Net Leverage Ratio
Calculation of Net Leverage Ratio Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplemental to and not a substitute for financial information pr
Slide 27: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Free cash flow is not a recognized term under GAAP and should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP. Further, since all companies do not use identical calculations, our definition and presentation
Slide 28: Historical Fleet at OEC
Historical Fleet at OEC1 $ in millions FY 2020 FY 2021 FY 2022 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Beginning Balance $ 3,822 $ 3,589 $ 4,381 $ 5,637 $ 6,328 $ 6,416 $ 6,714 $ 7,088 $ 6,328 $ 7,044 $ 6,879 $ 9,858 $ 9,600 $ 7,044 Expenditures 348 72
Slide 29: For additional information, please contact:
For additional information, please contact: Leslie Hunziker SVP Investor Relations, Communications & Sustainability leslie.hunziker@hercrentals.com 239-301-1675 Herc Holdings Inc. NYSE: HRI Q4 2025 29