Herc Holdings (NYSE:HRI) reported robust top-line growth for the first quarter ended March 31, 2026, as the company continues to capitalize on strong demand across the North American construction and industrial markets.
The Bonita Springs-based equipment rental leader posted total revenues of $1.139 billion, a 32% increase compared to the first quarter of 2025.
The primary driver of the quarter’s performance was equipment rental revenue, which surged 33% to reach $981 million.
This growth reflects the company’s strategic fleet expansion and high utilization rates amid ongoing infrastructure projects and industrial activity.
Adjusted EBITDA also saw a 33% climb to $448 million, maintaining a steady adjusted EBITDA margin of 39%.
While the company reported a GAAP net loss of $24 million ($0.72 per diluted share)—largely due to increased interest expenses and depreciation related to its record fleet investments—it maintained positive underlying profitability.
On an adjusted basis, Herc reported net income of $7 million, or $0.21 per diluted share.
A significant highlight of the quarter was the company's cash generation capability.
Free cash flow for the period reached $94 million, nearly doubling the $49 million generated in the prior-year period.
This liquidity provides Herc with the flexibility to continue its aggressive capital expenditure program while maintaining a healthy balance sheet.