Herc Holdings Inc. · NYSE:HRI
Herc — Q3 2026 Earnings Presentation
28 slides from Herc's earnings presentation, Oct 27, 2026
Slide 1: Scaling for Sustainable Growth
Scaling for Sustainable Growth Q3 2026 EARNINGS CONFERENCE CALL October 27, 2026
Slide 2: Herc Rentals Team and Agenda
Herc Rentals Team and Agenda Agenda Safe Harbor Q3 2026 Overview Q3 Operations Review Q3 Financial Review 2026 Outlook Larry Silber Aaron Birnbaum Mark Humphrey Leslie Hunziker Q&A Chief Executive Officer President Senior Vice President & Senior Vice President Chief Financial Officer Investor Relati
Slide 3: Safe Harbor Statements and Non-GAAP Financial Measures
Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section Further information on the risks that may affect our business is included in filings we 21E of the Securities Exchange Act, as amended
Slide 4: Third Quarter 2026 Overview
Third Quarter 2026 Overview Larry Silber Chief Executive Officer Herc Holdings Inc. NYSE: HRI Q3 2026 4
Slide 5: Q3 2026: Delivering on Growth Strategies
Q3 2026: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • Fleet investments support accelerating mega project growth, revenue synergies Strategies to Accelerate • Fleet efficiency strong: 12% rental revenue growth on 2% avg. OEC growth ROIC and In
Slide 6: Culture Drives Execution
Culture Drives Execution Safety-First Foundation One Team Herc Standardized Processes Technology Innovation • Protect people, • Shared values, • Common operating • Role-based training and customers and jobsites accountability and model across the digital adoption collaboration network • Reliable equ
Slide 7: Operations Review
Operations Review Aaron Birnbaum President Herc Holdings Inc. NYSE: HRI Q3 2026 7
Slide 8: Optimizing Fleet Mix and Lifecycle Performance
Optimizing Fleet Mix and Lifecycle Performance Fleet Expenditures at OEC1 $10.0 billion at OEC1 $ in millions 2025 2026 $582 Specialty Other $451 $423 24% 20% $314 $266 $183 Fleet $74 Composition Material 20% 25% Q1 Q2 Q3 Q4 Aerial Handling Fleet Disposals at OEC1,2 11% $ in millions 2025 2026 Earth
Slide 9: Delivering Growth and Resiliency through Diversification
Delivering Growth and Resiliency through Diversification Contractors 42% Q3 Revenue by Q3 Local vs. Customer1 24% Industrial Local 45% National 55% National 6% Revenue Mix Other 11% 17% Commercial Facilities Infrastructure & Government • Local market remains stable - Infrastructure, government and M
Slide 10: Capitalizing on Growth Trends Across Diverse Customer and Project Base
Capitalizing on Growth Trends Across Diverse Customer and Project Base Infrastructure Commercial Contractors (42%) Industrial (24%) Other (6%) & Gov. Direct (17%) Facilities (11%) • Electrical • Agriculture • Aerospace • Airports • Banks • Sporting Events • General Contractors • Chemical Processing
Slide 11: Continued Strength in Key End Markets
Continued Strength in Key End Markets Industrial Spending1 Mega Project Starts3 $ in billions $ in billions $742 $737 $722 $688 $695 $627 $776 $195 Scheduled $531 — — — — Starts pipeline $457 continues to $335 $528 build $352 Started $314 21 22 23 24 25 26E 27E 28E 29E 30E 25 26E 27E Non-Residential
Slide 12: Operational Progress in 1H:26 Unlocks 2H:26 Growth Momentum
Operational Progress in 1H:26 Unlocks 2H:26 Growth Momentum 2H:25 1H:26 2H:26 Integration New Foundation Acceleration • Expanded regional management • 30% larger business by fleet, • 2026 growth-fleet onboarding & organizational design people, locations • New specialty locations gaining • Sales terr
Slide 13: Financial Review
Financial Review Mark Humphrey Senior Vice President and Chief Financial Officer
Slide 14: Q3 2026 Financial Results
Q3 2026 Financial Results Three Months Ended September 30, Nine Months Ended September 30, 2026 vs 2025 % 2026 vs 2025 % 2026 2025 2026 2025 $ in millions, except per share data Change Change Equipment Rental Revenue $1,254 $1,122 11.8% $3,307 $2,731 21.1% Total Revenues $1,364 $1,304 4.6% $3,707 $3
Slide 15: Disciplined Capital Management
Disciplined Capital Management Maturities As of September 30, 2026 $1,950 Ample liquidity2 of $2.1B $ in millions provides financial flexibility ABL Credit Facility Net leverage3 of 3.90x Free cash flow3 of $133M for the nine months ended September 30, 2026 $1,650 Quarterly dividend of $0.70 per sha
Slide 16: Updating 2026 Outlook
Updating 2026 Outlook Metric 2025 Actual 2026 Previous Guidance 2026 Revised Guidance Equipment Rental Revenue $3.8B $4.375B to $4.475B $4.475B to $4.550B Adjusted EBITDA $1.8B $2.05B to $2.125B $2.10B to $2.15B Net Rental Equipment Expenditures $649M $850M to $950M $1.0B to $1.1B Gross Capex $1.1B
Slide 17: Purpose, Vision, Mission and Values
Purpose, Vision, Mission and Values Purpose: We equip our customers and communities to build a brighter future Herc Holdings Inc. NYSE: HRI Q3 2026 17
Slide 18: Appendix
Appendix oe a aw .
Slide 19: Glossary of Terms Commonly Use in the Industry
Glossary of Terms Commonly Use in the Industry OEC: Original Equipment Cost which is an operating measure based on the guidelines of the American Rental Association (ARA), which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs
Slide 20: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through EBITDA, Adjusted EBITDA, and REBITDA—EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental e
Slide 21: Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through Three Months Ended September 30, Nine Months Ended September 30, $ in millions 2026 2025 2026 2025 Net income (loss) $ 104 $ 30 $ 99 $ (23) Income tax provision (benefit)
Slide 22: REBITDA Margin and Flow-Through Quarterly Trend
REBITDA Margin and Flow-Through Quarterly Trend $ in millions Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Net income (loss) $ (18) $ (35) $ 30 $ 24 $ 1 $ (24) $ 19 $ 104 Income tax provision (benefit) 10 (11) 8 (7) — 1 5 16 Interest expense, net 62 86 134 134 416 128 126 126 Depr
Slide 23: REBITDA Margin and Flow-Through Annual Trend
REBITDA Margin and Flow-Through Annual Trend $ in millions 2021 2022 2023 2024 2025 Net income $ 224 $ 330 $ 347 $ 211 $ 1 Income tax provision 67 104 100 80 — Interest expense, net 86 122 224 260 416 Depreciation of rental equipment 420 536 643 679 856 Non-rental depreciation and amortization 68 95
Slide 24: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share
Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share Adjusted Net Income and Adjusted Earnings per Diluted Share—Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and transformation initiative costs, spin-off costs, loss on exti
Slide 25: Calculation of Net Leverage Ratio
Calculation of Net Leverage Ratio Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplemental to and not a substitute for financial information pr
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Free cash flow is not a recognized term under GAAP and should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP. Further, since all companies do not use identical calculations, our definition and presentation
Slide 27: Historical Fleet at OEC
Historical Fleet at OEC1 $ in millions FY 2022 FY 2023 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026 Q3 2026 Beginning Balance $ 4,381 $ 5,637 $ 6,328 $ 7,044 $ 6,879 $ 9,858 $ 9,600 $ 7,044 $ 9,523 $ 9,441 $ 9,619 Expenditures 1,218 1,218 1,077 74 314 423 266 1,077 183 451 582 Dis
Slide 28: For additional information, please contact:
For additional information, please contact: Leslie Hunziker SVP Investor Relations, Communications & Sustainability [email protected] 239-301-1675 Herc Holdings Inc. NYSE: HRI Q3 2026 28