H&E Equipment Services Announces Q4 and Full Year 2024 Results, Upcoming Acquisition by Herc Holdings
BATON ROUGE, La., Feb. 21, 2025 – H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E” or the “Company”), a leading provider of equipment rentals and services, reported its financial results for the fourth quarter and full year ended December 31, 2024. Simultaneously, the Company announced its agreement to be acquired by Herc Holdings Inc. (NYSE: HRI), a leading North American equipment rental company.
Financial Highlights
For the fourth quarter, H&E reported revenue of $423.5 million, a 12% increase compared to the same period in 2023. Net income for the quarter was $32.3 million, up from $21.9 million in the previous year. Full-year 2024 revenue was $1.5 billion, a 13% increase from 2023, with net income of $132.8 million, a 28% increase from the previous year.
Acquisition by Herc Holdings
Under the terms of the agreement, Herc Holdings will acquire H&E in an all-cash transaction valued at approximately $1.3 billion, including the assumption of debt. The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals. Upon completion, H&E will become a subsidiary of Herc Holdings, and its common stock will no longer be traded on the NASDAQ.
Impact on Customers
The merger of H&E and Herc Holdings is expected to create a leading equipment rental company with a combined 120 years of industry experience and a broader range of equipment offerings. This expanded portfolio will enable the combined company to serve customers more effectively and efficiently, with a larger geographic footprint and a more comprehensive range of services.
- Improved equipment availability: With a larger fleet, the combined company will be better positioned to meet the rental demands of its customers.
- Increased service capabilities: The merger will result in a more extensive network of service centers, allowing for quicker response times and more comprehensive repair services.
- Greater geographic reach: The combined company will have a more extensive presence in key markets, enabling it to better serve customers in various industries and regions.
Impact on the World
The merger of H&E and Herc Holdings represents a significant consolidation in the equipment rental industry. The combined company will have a strong presence in the North American market, with a broader range of equipment offerings and a larger geographic footprint. This merger could lead to increased competition and potential price pressures in the industry, as well as potential job losses due to the consolidation of operations.
Conclusion
In summary, H&E Equipment Services reported strong financial results for the fourth quarter and full year 2024, while also announcing its agreement to be acquired by Herc Holdings. The merger is expected to create a leading equipment rental company with a broader range of offerings and a larger geographic footprint. This consolidation could have significant implications for customers, including improved equipment availability, increased service capabilities, and greater geographic reach. However, it may also result in increased competition and potential job losses. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals.
