Herc Holdings: Still Holding Onto This Buy Rating

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryHerc Holdings remains a ‘buy’ despite a 31.8% stock decline and profit headwinds post-H&E Equipment Services acquisition.HRI’s revenue surged to $4.38 billion in 2025, but net income fell sharply due to higher operating costs, depreciation, and interest expense.Management targets 2026 EBITDA of $2.0–$2.1 billion, driven by $125 million in cost synergies and $100–$200 million in revenue synergies.Valuation is compelling versus peers, though net leverage is elevated; management aims to reduce leverage to 2–3x by the end of next year.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Fahroni/iStock via Getty Images Over a year ago, in February of 2025, I wrote my last article about equipment rental company Herc Holdings (HRI). From a purely fundamental standpoint, the company had been doing well leading upThis article was written byDaniel Jones36.8K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.