Herc Holdings Inc. · NYSE:HRI
Herc — Q2 2025 Earnings Presentation
33 slides from Herc's earnings presentation, Jul 29, 2025
Slide 1: Scaling for Sustainable Growth
Scaling for Sustainable Growth Q2 2025 EARNINGS CONFERENCE CALL July 29, 2025
Slide 2: Herc Rentals Team and Agenda
Herc Rentals Team and Agenda Agenda Safe Harbor Q2 2025 Overview Q2 Operations Review Q2 Financial Review 2025 Outlook Larry Silber Aaron Birnbaum Mark Humphrey Leslie Hunziker Q&A President & Chief Senior Vice President Senior Vice President Senior Vice President Executive Officer & Chief Operating
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: Second Quarter 2025 Overview
Second Quarter 2025 Overview Larry Silber President and Chief Executive Officer Herc Holdings Inc. NYSE: HRI Q2 2025 4
Slide 5: H&E Acquisition Closed June 2, 2025
H&E Acquisition Closed June 2, 2025 • Successfully raised $4.4B in debt at 6.8% WACD, despite bond market volatility • Extensive planning set stage for effective Day 1 integration launch • People • Processes ◦ Stabilized employee base ◦ Training for standardization ◦ Remapped organizational structur
Slide 6: Q2 2025: Delivering on Growth Strategies
Q2 2025: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale Strategies to Accelerate • Completed acquisition of H&E Equipment Services; integration of 162 branches ROIC and Increase underway • Opened 8 previously planned greenfield locations Sharehold
Slide 7: Operations Review
Operations Review Aaron Birnbaum Senior Vice President and Chief Operating Officer Herc Holdings Inc. NYSE: HRI Q2 2025 7
Slide 8: Focusing on Safety
Focusing on Safety Continuing focus on Perfect Days • Q2 25 all branches reported > 96% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations Total TTM Recordable Incident Rate is 0.92 — favorable to industry standard of 1.0 P
Slide 9: Delivering Growth and Resiliency through Diversification
Delivering Growth and Resiliency through Diversification Contractors 37% Q2 Revenue by 25% Industrial Q2 Local vs. 47% National Customer1 Local 53% National 7% Revenue Mix Other 14% 17% Commercial Facilities Infrastructure & Government • Local growth restricted by interest rate environment ◦ Infrast
Slide 10: Optimizing Fleet Mix and Lifecycle Performance
Optimizing Fleet Mix and Lifecycle Performance Fleet Expenditures at OEC1 $9.9 billion at OEC1,2 $ in millions Other Specialty 2024 2025 20% 18% $344 $366 $314 $167 $200 Fleet $74 Composition 22% 26% Material Q1 Q2 Q3 Q4 Handling Aerial 1 14% Fleet Disposals at OEC $ in millions 2024 2025 Earthmovin
Slide 11: Continued Strength in Key End Markets
Continued Strength in Key End Markets Industrial Spending1 Mega Project Starts3 $ in billions $527 $531 $533 $525 $ in billions $601 $513 $454 $345 $288 $293 $317 $326 — — $314 — $308 — — — — — — — — — — — — — — —— 18 19 20 21 22 23 24 25E 26E 27E 28E 23 24 25E Non-Residential Starts2 $553 Infrastru
Slide 12: Capitalizing on Growth Trends Across Diverse Customer and Project Base
Capitalizing on Growth Trends Across Diverse Customer and Project Base Infrastructure Commercial Contractors (37%) Industrial (25%) Other (7%) & Gov. Direct (17%) Facilities (14%) • Electrical • Agriculture • Aerospace • Airports • Banks • Sporting Events • General Contractors • Chemical Processing
Slide 13: Financial Review
Financial Review Mark Humphrey Senior Vice President and Chief Financial Officer
Slide 14: Q2 2025 Financial Results
Q2 2025 Financial Results Three Months Ended June 30, Six Months Ended June 30, 2025 vs 2024 % 2025 vs 2024 % 2025 2024 2025 2024 $ in millions, except per share data Change Change Equipment Rental Revenue $870 $765 13.7% $1,609 $1,484 8.4% Total Revenues $1,002 $848 18.2% $1,863 $1,652 12.8% Net In
Slide 15: Equipment Rental Revenue Contribution
Equipment Rental Revenue Contribution Q2 25 Equipment rental revenue +14% as reported; Pro forma1 -2% YoY • Cinelease Q2 25 decline in rental revenue reflects continued entertainment industry softness • Q2 25 Equipment rental revenue contribution from ongoing business: ◦ Herc legacy branches +4% YoY
Slide 16: Q2 2025 Financial Results Excluding Cinelease Studio Entertainment
Q2 2025 Financial Results Excluding Cinelease Studio Entertainment1 Three Months Ended June 30, Six Months Ended June 30, 2025 vs 2024 % 2025 vs 2024 2025 2024 2025 2024 $ in millions Change % Change Core Equipment Rental Revenue $854 $739 15.6% $1,578 $1,429 10.4% Core Total Revenues $984 $819 20.1
Slide 17: Disciplined Capital Management
Disciplined Capital Management Ample liquidity2 of $1.6 billion Maturities provides financial flexibility As of June 30, 2025 $ in millions Net leverage3 of 3.8x Adjusted free cash flow3 of $270 ABL Credit million for first half 2025 Facility 2027 Senior $2,389 Quarterly dividend of $0.70 per 2033 S
Slide 18: 2025 Outlook (Excluding Cinelease)
2025 Outlook (Excluding Cinelease) Metric Updated 2025 Guidance Equipment Rental Revenue $3.7 billion to $3.9 billion Adjusted EBITDA $1.8 billion to $1.9 billion Net Rental Equipment Expenditures $400 million to $600 million Gross Capex $900 million to $1.1 billion Key Assumptions: • Accelerated im
Slide 19: 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 Q2 2025 19
Slide 20: Appendix
Appendix oe a aw .
Slide 21: 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 22: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental 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, provision (benefit) for income taxes, interest expense, net, depreciation of rental equipmen
Slide 23: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental 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 June 30, Six Months Ended June 30, $ in millions 2025 2024 2025 2024 Net income (loss) $ (35) $ 70 ($53) $135 Income tax provision (benefit) (11) 23 (1
Slide 24: Reconciliation of Net Income to Adj. EBITDA, Excluding Studio Entertainment (Q2)
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through, Excluding Studio Entertainment Three Months Ended June 30, 2025 2024 $ in millions Herc Studio Entertainment Herc, excl Studio Herc Studio Entertainment Herc, excl Studi
Slide 25: Reconciliation of Net Income to Adj. EBITDA, Excluding Studio Entertainment (Six Months)
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through, Excluding Studio Entertainment Six Months Ended June 30, 2025 2024 $ in millions Herc Studio Entertainment Herc, excl Studio Herc Studio Entertainment Herc, excl Studio
Slide 26: Pro forma Equipment Rental Revenue and Total Revenues Reconciliation
Pro forma Equipment Rental Revenue and Total Revenues Reconciliation The reconciliations below include (i) the results of Herc, excluding Cinelease, plus the standalone, pre-acquisition results of H&E, (ii) the standalone results of Herc, excluding Studio and H&E and (iii) the standalone results of
Slide 27: 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 Net income (loss) $ 65 $ 70 $ 122 $ (46) $ 211 $ (18) $ (35) Income tax provision (benefit) 16 23 38 3 80 10 (11) Interest expense, net 61 63 69 67 260 62 86 Depreciation of rental e
Slide 28: REBITDA Margin and Flow-Through Annual Trend
REBITDA Margin and Flow-Through Annual Trend $ in millions 2020 2021 2022 2023 2024 Net income $ 74 $ 224 $ 330 $ 347 $ 211 Income tax provision 20 67 104 100 80 Interest expense, net 93 86 122 224 260 Depreciation of rental equipment 403 420 536 643 679 Non-rental depreciation and amortization 63 6
Slide 29: Reconciliation of Net Income and Adjusted Earnings Per Diluted Share
Reconciliation of 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 related costs, restructuring and restructuring related charges, spin-off costs, loss on extingui
Slide 30: 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 31: 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 32: 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 Beginning Balance $ 3,822 $ 3,589 $ 4,381 $ 5,637 $ 6,328 $ 6,416 $ 6,714 $ 7,088 $ 6,328 $ 7,044 $ 6,879 Expenditures 348 725 1,218 1,218 167 344 366 200 1,077 74 314 Dispo
Slide 33: 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 Q2 2025 33