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HRI Herc+22.8%Stock moveEarnings and guidance

Herc Holdings Stock Jumps 23% After Record Third-Quarter Results and Raised 2026 Guidance

The equipment rental company raised its full-year 2026 revenue, adjusted EBITDA and capex guidance for the second time this year, citing mega-project demand.

By Zintick Team · Editor: Kratik Mehta
Published

Construction worker wearing safety work at high uniform on scaffolding at construction site on during sunset,Working at heigh
Photo: Sakura Image Inc/Shutterstock.com

Key points

  • Herc Holdings rose 22.8% on Oct. 27, 2026, after raising full-year 2026 guidance in its third-quarter results
  • Q3 equipment rental revenue rose 12% to a record $1,254 million
  • Adjusted EBITDA guidance raised to $2.10 billion to $2.15 billion
  • Net income was $104 million, or $3.10 per diluted share

Herc Holdings Inc. (NYSE: HRI) rose 22.8% on Tuesday, Oct. 27, 2026, closing at $156.06 from a previous close of $127.13, while the S&P 500 ETF (SPY) gained 0.56% that session. Volume ran at 3.4 times its normal level. The move followed the company's third-quarter results and a raised outlook, both released before the open in an 8-K filed at 6:31 a.m. ET.

Equipment rental revenue jumped 12%

In the press release furnished with the 8-K, Herc reported record equipment rental revenue of $1,254 million, up 12%, and record total revenues of $1,364 million, up 5%. Net income was $104 million, or $3.10 per diluted share, against $30 million, or $0.90, a year earlier. Adjusted net income was $131 million, or $3.91 per diluted share. Adjusted EBITDA rose 9% to a record $603 million, and its margin widened 190 basis points to 44.2%.

Chief Executive Larry Silber attributed the result to robust mega-project volume and double-digit growth in the specialty solutions business, while revenue synergies from the H&E acquisition were an increasing contributor.

Guidance raised again

The company raised its 2026 equipment rental revenue guidance to $4.475 billion to $4.550 billion from $4.375 billion to $4.475 billion. Adjusted EBITDA guidance moved to $2.10 billion to $2.15 billion from $2.05 billion to $2.125 billion. Net rental equipment capital expenditures were raised to $1.0 billion to $1.1 billion from $850 million to $950 million. Silber said growth in the large-project pipeline, including data centers, infrastructure, manufacturing and energy projects, continues to exceed the company's expectations.

Costs rose alongside revenue

Direct operating expenses reached 42.4% of equipment rental revenue, up from 41.6%, which the company tied to higher transportation and fuel expenses and to field incentive pay. Net debt was $8.0 billion at a 3.90x net leverage ratio, and the company reported about $2.1 billion of liquidity as of Sept. 30, 2026.

The company's quarterly 10-Q was filed at 6:36 a.m. ET.

Sources

Written with AI from SEC filings and market data, and checked against those sources before publishing. Our editorial standards.

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Filings, figures and price history are on the Herc page.