Overview
- Herc guided to 2026 rental revenue growth of 13%–17%, Adjusted EBITDA of $2.0–2.1 billion, free cash flow of $400–600 million, and about $950 million in gross capital spending (roughly $650 million net).
- The company expects $100–120 million in incremental revenue synergies and plans to recognize $125 million in cost synergies during 2026.
- Integration is materially advanced with acquired branches on Herc’s technology stack, the field structure expanded to 10 U.S. regions, and roughly 80% of branch optimization on track to be completed next month.
- Herc is consolidating general rental equipment to make room for roughly a 25% increase in stand-alone or co-located specialty branches.
- Pro forma leverage is about 3.9x with a stated goal to return to a 2x–3x range by year-end 2027, following a year in which Q4 rental revenue rose about 24% and adjusted EBITDA increased 19%.