Herc Holdings Inc. · NYSE:HRI
Herc — Q3 2025 Earnings Presentation
28 slides from Herc's earnings presentation, Oct 28, 2025
Slide 1: Scaling for Sustainable Growth
Scaling for Sustainable Growth Q3 2025 EARNINGS CONFERENCE CALL October 28, 2025
Slide 2: Herc Rentals Team and Agenda
Herc Rentals Team and Agenda Agenda Safe Harbor Q3 2025 Overview Q3 Operations Review Q3 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: Third Quarter 2025 Overview
Third Quarter 2025 Overview Larry Silber President and Chief Executive Officer Herc Holdings Inc. NYSE: HRI Q3 2025 4
Slide 5: Integration Update
Integration Update Completed: • Sales & Territory Optimization Q2/Q3 ◦ Optimized sales territories to reflect increased scale ◦ Enhanced field leadership structure • Systems Integration Q3 ◦ Seamless execution, best-in-class timeline ◦ All systems transferred: ERP, CRM, pricing, BI, logistics, fleet
Slide 6: Q3 2025: Delivering on Growth Strategies
Q3 2025: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • ~40% increase YoY in branch locations, adding density in the key Gulf Coast, Strategies to Accelerate Mountain West and Southeast regions • Opened 6 previously planned greenfield locations
Slide 7: Operations Review
Operations Review Aaron Birnbaum Senior Vice President and Chief Operating Officer Herc Holdings Inc. NYSE: HRI Q3 2025 7
Slide 8: Focusing on Safety
Focusing on Safety Onboarded over 2,500 new team members into Herc Health & Safety programs Continuing focus on Perfect Days • Q3 25 all branches reported > 97% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations Total TTM R
Slide 9: Delivering Growth and Resiliency through Diversification
Delivering Growth and Resiliency through Diversification Contractors 41% Q3 Revenue by 23% Industrial Q3 Local vs. National 48% Customer1 Local 52% National 6% Revenue Mix Other 14% 16% Commercial Facilities Infrastructure & Government • Local growth restricted by high interest-rate environment ◦ In
Slide 10: Continued Strength in Key End Markets
Continued Strength in Key End Markets Industrial Spending1 Mega Project Starts3 $652 $ in billions $559 $555 $ in billions $545 $530 $530 $526 $457 $290 $297 $352 $308 $314 20 21 22 23 24 25E 26E 27E 28E 29E 23 24 25E Non-Residential Starts2 Infrastructure Starts2 $ in billions $372 $374 $ in billio
Slide 11: Optimizing Fleet Mix and Lifecycle Performance
Optimizing Fleet Mix and Lifecycle Performance Fleet Expenditures at OEC1 $9.6 billion at OEC1,2 $ in millions Other Specialty 2024 2025 21% 17% $423 $344 $366 $314 $167 $200 Fleet $74 Composition 22% 27% Material Q1 Q2 Q3 Q4 Handling Aerial Fleet Disposals at OEC1,3 13% $ in millions 2024 2025 Eart
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 (41%) Industrial (23%) Other (6%) & Gov. Direct (16%) 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: Q3 2025 Financial Results
Q3 2025 Financial Results Three Months Ended September 30, Nine Months Ended September 30, 2025 vs 2024 % 2025 vs 2024 % 2025 2024 2025 2024 $ in millions, except per share data Change Change Equipment Rental Revenue $1,122 $866 29.6% $2,731 $2,350 16.2% Total Revenues $1,304 $965 35.1% $3,167 $2,61
Slide 15: Disciplined Capital Management
Disciplined Capital Management Maturities Ample liquidity2 of $1.8B As of September 30, 2025 provides financial flexibility $ in millions $2,258 Net leverage3 of 3.8x ABL Credit Facility Adjusted free cash flow3 of $342M for nine months ended 2025 Quarterly dividend of $0.70 per $1,650 share, paid o
Slide 16: Reaffirming 2025 Outlook
Reaffirming 2025 Outlook Metric 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: • Gross capex includes incremental
Slide 17: 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 Q3 2025 17
Slide 18: Appendix
Appendix oe a aw .
Slide 19: 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 20: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin
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 21: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through Three Months Ended September 30, Nine Months Ended September 30, $ in millions 2025 2024 2025 2024 Net income (loss) $ 30 $ 122 $ (23) $ 257 Income tax provision 8 38 7 7
Slide 22: 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 Net income (loss) $ 65 $ 70 $ 122 $ (46) $ 211 $ (18) $ (35) $ 30 Income tax provision (benefit) 16 23 38 3 80 10 (11) 8 Interest expense, net 61 63 69 67 260 62 86 134 Depre
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 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 Expenditures 348 725 1,218 1,218 167 344 366 200 1,
Slide 28: 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 Q3 2025 28