New York, Feb 18, 2026, 09:44 ET — Regular session
- Herc Holdings stock dropped at the open, piling on to losses from earlier this week’s results.
- The equipment rental company laid out its 2026 targets, moving ahead with the H&E integration.
- Analysts cut price targets, citing challenges from integration and questions around margin progress.
Herc Holdings Inc dropped 2.8% to $145.89 in early Wednesday trade, deepening losses that started after its 2026 guidance and new questions about costs after its latest deal.
This is a crucial moment for Herc, which is looking to justify its balance sheet expansion. After taking on debt to buy H&E, the company now faces investor scrutiny over whether those expected synergies will materialize quickly enough to safeguard margins.
Equipment rental names sometimes shadow moves in construction spending, though just as often, it’s the balance sheet that takes center stage. For Herc, the focus shifts next to how quickly it brings new assets into the fold, keeps its fleet working, and the amount of cash it manages to generate after capital expenses.
Herc posted a 24% gain in fourth-quarter equipment rental revenue, hitting $1.039 billion, while total revenue for the quarter jumped 27% to $1.209 billion. Adjusted EBITDA landed at $519 million. Looking ahead to 2026, the company is guiding for equipment rental revenue between $4.275 billion and $4.4 billion, and adjusted EBITDA in the $2.0 billion to $2.1 billion range. Year-end net debt was $8.1 billion, with net leverage at 3.95x. CEO Larry Silber described 2025 as “a pivotal year” and flagged the June H&E acquisition—the biggest in the industry, he said. (Business Wire)
Adjusted EBITDA strips out interest, taxes, depreciation, and amortization, plus any tweaks the company makes. Dollar utilization—a typical fleet stat tracking rental revenue against average original equipment cost—declined over the year, as the company focused on optimizing the newly acquired fleet.
KeyBanc trimmed its price target on Herc to $190 from $200 but maintained its Overweight rating. The firm pointed to ongoing integration challenges following Herc’s fourth-quarter numbers and its 2026 EBITDA targets. (Investing)
Baird trimmed its price target to $198 from $200 while keeping an Outperform call, noting that the business remains “choppy” but appears “close to turning better” after reviewing the quarter. (TipRanks)
Herc is in a business where size gives an edge and prices can swing fast if demand weakens in certain spots. Larger rivals are in the same boat—they need to keep their fleets busy, defend used-equipment prices, and juggle capital spending.
There’s a risk here. Integration savings could show up late, or local markets might weaken more, putting pressure on fixed costs and interest at once. With leverage running high, surprises become a bigger problem.
Herc management is set to address synergies, fleet plans, and what demand might look like in 2026 during remarks at the Barclays 43rd Annual Industrial Select Conference, scheduled for 11:35 a.m. ET Wednesday. (Hercrentals)
