Herc Holdings Inc. (HRI) AI Stock Analysis

Herc Holdings Inc., headquartered in Bonita Springs, Florida, operates as an equipment rental supplier across the United States and internationally. The company rents equipment including aerial platforms, earthmoving machinery, material handling solutions, trucks, trailers, air compressors, compaction equipment, and lighting systems. It also provides ProSolutions specialty services such as power generation, climate control, remediation, pump solutions, and trench shoring, alongside ProContractor tools. Additionally, Herc Holdings offers repair, maintenance, equipment management, safety training, transport, cleaning, refueling, labor, and sales of used equipment and contractor supplies across diverse non-residential and industrial end markets.

Herc Holdings expanded annual revenue from $2.07B in FY2021 to $4.38B in FY2025, recording a 5-year revenue CAGR of 19.7%. However, gross margin compressed from 36.5% in FY2021 to 28.2% in FY2025, while operating margin fell from 21.5% to 15.3%. Annual net income dropped from $224.0M in FY2021 and a peak of $347.0M in FY2023 down to $1.0M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 20.2% year-over-year, while quarterly earnings declined 79.0% year-over-year. TTM revenue reached $4.86B with a profit margin of 1.0% and EPS of $1.53.

As of June 30, 2026, Herc Holdings held $43.0M in cash and short-term investments against $9.46B in total debt, resulting in net debt of $9.42B and a debt-to-equity ratio of 5.01. Total assets were $13.72B and shareholders' equity stood at $1.89B, with a current ratio of 1.10. Operating cash flow was $1.12B in FY2025, but capital expenditures of $1.25B led to free cash flow of -$135.0M. During FY2025, the company deployed $87.0M toward dividends and $8.0M toward share buybacks.

HRI closed at $121.57 on October 16, 2026, down 16.8% year-to-date and 4.2% over the past year, compared to a 16.8% 1-year gain for the S&P 500 (SPY). Over five years, the stock fell 25.4% while SPY rose 83.0%. The company carries a trailing P/E of 79.5x, well above the 24.8x median of its US-listed Industrials peers. Conversely, its forward P/E of 12.2x and EV/EBITDA of 7.6x trade below the peer medians of 17.2x and 13.9x, respectively. Herc Holdings has a price-to-sales ratio of 0.8x versus the peer median of 1.5x.

Herc Holdings pays an annual forward dividend of $2.80 per share, representing a dividend yield of 2.30% with a payout ratio of 47.2%. Dividends are distributed on a quarterly frequency, and the company has maintained consecutive dividend payments for 6 years. The most recent ex-dividend date was September 2, 2026.

Wall Street analyst coverage consists of 6 Strong Buy, 3 Buy, 1 Hold, and 1 Sell ratings. The mean price target is $182.67, representing a 50.3% premium over the last close of $121.57. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $7.10 and revenue of $4.95B. For FY2027, 11 analysts project EPS of $10.90, reflecting 53.5% growth, and revenue of $5.37B. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 27, 2026.

This page is an AI-written research summary of Herc Holdings Inc. (HRI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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