Herc Rentals Earnings: Herc Continues to Grow Its Top Line Thanks to Solid Rental Demand

Herc Rentals reported solid top-line growth in the first quarter. Rental revenue increased 24% year on year, thanks to strong demand. Customers have been pushed to the rental channel over the past couple of years, given the supply constraints in new equipment manufacturing. The tight supply market has certainly been challenging to navigate, but Herc has proved to be resilient. Herc and the large rental players have worked hard to acquire fleet to meet demand. Over time, we expect rental demand to moderate, but 2023 is still shaping up to be a strong year. We’re projecting Herc to grow sales by 19% year on year, while operating margins expand by 130 basis points to 21.7%.