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Herc Holdings Inc. (HRI-9.00%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The report details the company's financial performance, highlighting an increase in equipment rental revenue to $3.2 billion, an 11% rise from the previous year. This growth was driven by a 9.3% increase in equipment on rent and a 3.2% improvement in pricing.
Sales of rental equipment decreased by $35 million, or 10%, reflecting a strategic fleet rotation plan. The margin on these sales was 28%, slightly higher than the previous year's 27%.
Direct operating expenses rose by 13% to $1.3 billion, attributed to higher personnel-related expenses, increased facilities costs due to new locations, and higher maintenance and delivery expenses.
Depreciation of rental equipment increased by 6% to $679 million, due to an expanded fleet size. Non-rental depreciation and amortization also rose by 13%, reflecting recent acquisitions.
Interest expense grew by 16% to $260 million, stemming from higher average debt balances used to fund acquisitions and equipment investments.
The company recorded a $194 million loss on assets held for sale, specifically related to the Cinelease studio entertainment business, which is actively marketed for sale.
The income tax provision was $80 million, with an effective tax rate of 27%, up from 22% in the previous year, due to non-deductible goodwill impairment and reduced stock-based compensation benefits.
Net income for the year was $211 million, down from $347 million in 2023, reflecting the impact of increased expenses and the loss on assets held for sale.
Herc Holdings ended the year with $83 million in cash and cash equivalents, and had $1.8 billion of unused borrowing capacity under its credit facilities.
The company completed nine acquisitions, adding 28 branches, and opened 23 new locations, supporting its strategy to expand in urban markets across North America.
The report also notes the company's commitment to sustainability and technology, with investments in digital platforms and initiatives to reduce greenhouse gas emissions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Herc Holdings Inc. annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.