Herc Holdings Inc

United Rentals and Herc Holdings both raised their 2026 outlooks as large multiyear projects across infrastructure, data centers, power and manufacturing drove stronger-than-expected equipment rental demand. United Rentals reported second-quarter 2026 total revenues up 12% year over year to $4.4 billion, with rental revenues up nearly 13% to $3.8 billion and adjusted EPS up 22% to $12.76, and now expects full-year total revenues of $17.5 billion to $17.8 billion and adjusted EBITDA of $7.98 billion to $8.13 billion. Herc, which completed its integration of H&E Equipment Services in the first quarter of 2026, saw second-quarter pro forma equipment rental revenues rise 2% and raised its targeted share of the U.S. mega-project rental opportunity to 20% from 15%. At the midpoint, Herc expects 2026 equipment rental revenues of roughly $4.43 billion and adjusted EBITDA of about $2.09 billion, with pro forma rental revenue growth of nearly 5% on roughly flat average fleet investment. United Rentals carries a Zacks Rank #3 (Hold) while Herc holds a Zacks Rank #1 (Strong Buy), though United Rentals retains advantages in scale, free cash flow and lower leverage.

Herc Holdings Inc. was the largest contributor to the Gabelli Focused Growth and Income Fund in the second quarter of 2026, surging approximately 45% as the market re-rated the shares following first quarter results that far exceeded expectations. The Fund, which declined 1.61% in the quarter, held Herc Holdings at 2.5% of net assets as of June 30, 2026. Equipment rental revenue rose 33% to $981 million, adjusted EBITDA increased 33% to $448 million, and adjusted earnings of $0.21 per diluted share came in well ahead of consensus estimates. Management affirmed full year 2026 guidance of $4.275–$4.4 billion in equipment rental revenue and $2.0–$2.1 billion in adjusted EBITDA, supported by strong national account activity and a growing mega-project pipeline. Herc pays a quarterly dividend of $0.70 per share, or $2.80 annualized.

J.P. Morgan reshuffled its ratings on major equipment-rental companies on Thursday, upgrading Herc Holdings to Overweight from Neutral with a December 2027 price target of $175 while downgrading United Rentals to Neutral from Overweight with a $1,170 target. Analyst Tami Zakaria also maintained an Underweight rating on Sunbelt Rentals but raised its December 2027 price target to $79 from a previous December 2026 target of $71, as the bank introduced its 2028 earnings forecasts. J.P. Morgan expects the Federal Reserve to raise interest rates once before the end of 2026, which could further postpone a recovery in smaller, locally driven construction markets, though elevated financing costs above 6% may push contractors to rent rather than buy equipment. The bank sees Herc Holdings as offering the most upside, citing improving fleet utilization after its acquisition of H&E Equipment Services, with projected 2026 adjusted EBITDA still about 10% below the combined companies' pre-transaction earnings, and forecasts Herc revenue rising from $5 billion in 2026 to $5.8 billion in 2028 with adjusted earnings reaching $15.11 a share in 2028. United Rentals remains the industry's best operator, but J.P. Morgan cited valuation and a shrinking acquisition pipeline, forecasting revenue of $17.8 billion in 2026, $19.4 billion in 2027 and $21.1 billion in 2028, with earnings projected at $63.35 a share in 2028. Sunbelt Rentals reported fiscal first-quarter adjusted earnings of $1.18 a share, beating the consensus estimate of $1.04, on revenue that rose 11% to $3.12 billion, and raised its adjusted EBITDA outlook to between $4.92 billion and $5.12 billion from a previous range of $4.85 billion to $5.05 billion.

Herc Holdings Inc. announced that its Board of Directors has declared a regular quarterly dividend of $0.70 per share. The dividend is payable on September 16, 2026, to shareholders of record as of September 2, 2026. Herc Holdings operates through its Herc Rentals Inc. subsidiary and is one of North America's leading equipment rental suppliers.