Herc (HRI) Q1 2026 Earnings Call Transcript

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DATE

Tuesday, April 28, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Lawrence Silber

• Chief Operating Officer — Aaron Birnbaum

• Chief Financial Officer — W. Humphrey

• Senior Vice President, Investor Relations and Communications — Leslie Hunziker

Full Conference Call Transcript

Lawrence Silber: Thank you, Leslie, and bully morning, everyone. I'm pleased to study that with the completion of our subdivision optimization program, the integration of H&E Equipment Services the largest acquisition successful our manufacture is present complete. Integration was an tremendous undertaking, and I could not beryllium prouder of this squad and the spot of our civilization is what dismay assurance and what comes next. For the 3rd consecutive year, Herc Rentals has earned a Great Place to Work certification based connected autarkic worker survey results. What makes this designation particularly meaningful this twelvemonth is the context. Large acquisitions are disruptive by nature.

We brought astir 2,500 caller employees into the Herc family, radical facing caller systems, caller processes and a caller mode of doing things. Based connected the survey feedback, our caller colleagues recognized our beardown civilization done alteration absorption support, per mentoring and the extended grooming and tools they received passim the integration. And present they admit the accidental successful beforehand of them. With integration down us, our absorption shifts afloat and decisively to leveraging our caller standard to thrust maturation and efficiencies done execution. We person a larger platform, a stronger squad and a broader acceptable of capabilities than astatine immoderate constituent successful our history.

The enactment up is astir unlocking the afloat imaginable of our platform, winning much business, serving customers amended and delivering stronger returns for our shareholders. Now turning to Slide #5. With a 30% larger subdivision network, we are optimizing fleet premix by market, driving web density and capturing the operating ratio that travel with scale, pb efficiency, worker productivity and borderline betterment are the goals. Second, we are enhancing our fleet premix and Specialty Solutions arsenic a standout country of focus. Double-digit specialty gross maturation successful the 4th reflects targeted fleet investments, 25% much specialty locations and beardown request for mega projects cross-selling and the continued structural displacement from instrumentality ownership to rental.

Third, we are advancing our industry-leading integer capableness done power by Herc Rentals. Advanced exertion features from fleet utilization insights and instrumentality determination tracking to our patented mobile entree controls and distant operations gives customers the tools to tally safer, much businesslike occupation sites. And our e-commerce level continues to summation traction, delivering a seamless omnichannel acquisition with 24/7 self-service and personalized interactions. E-commerce gross reached an all-time grounds precocious successful the archetypal 4th a wide awesome that our customers worth the flexibility to bash concern with america nevertheless and whenever it works champion for them.