Herc Holdings: Will Its Focus On The Specialty Markets Pay Off?

Herc Holdings, Inc. reported mixed results in their third-quarter earnings call for 2025, underpinned by achievements in integration and challenges related to the broader economic environment. The earnings call emphasized the successful integration of H&E Equipment Services, which Herc acquired, highlighting significant progress in aligning systems and operations. Within just 90 days, Herc transitioned H&E’s operations from SAP to Herc’s customized platforms, demonstrating operational efficiency and technological strategy. From a positive standpoint, the acquisition bolstered Herc’s scale, providing a competitive edge in mega projects and specialty solutions, particularly significant given the current bifurcated market where local markets suffer due to high interest rates while national, mega-scale projects see robust activity. The integration has increased Herc’s geographic and product line diversification, fortifying its resilience against market fluctuations.