H&E Equipment Services, Inc. (HEES): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico dos Serviços de Equipamentos, a H&E Equipment Services, Inc. (HEES) se destaca como um jogador fundamental, transformando como as empresas acessam e gerenciam máquinas críticas nos setores de construção e industriais. Seu inovador modelo de negócios Canvas revela uma abordagem sofisticada que vai além do aluguel simples de equipamentos, oferecendo um ecossistema abrangente de soluções que capacitam as empresas a otimizar suas capacidades operacionais. Desde opções de aluguel flexíveis a gerenciamento de frotas de ponta, a Hees criou uma estrutura estratégica que atende às necessidades complexas de equipamentos de diversas indústrias, tornando-as um divisor de jogos no cenário dos serviços de equipamentos.

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: Parcerias -chave

Fabricantes de construção e equipamentos industriais

A H&E Equipment Services mantém parcerias estratégicas com os principais fabricantes de equipamentos:

Fabricante	Tipo de equipamento	Detalhes da parceria
Caterpillar Inc.	Equipamento de construção pesada	Fornecedor de equipamentos primários desde 1961
Indústrias Genie	Plataformas de trabalho aéreas	Distribuidor exclusivo de aluguel e vendas
JLG Industries	Elevadores e equipamentos aéreos	Contrato de distribuição de longo prazo

Redes de aluguel e vendas

A H&E opera em vários estados dos EUA com uma extensa rede:

• Locais em 11 estados
• Louisiana (sede): 21 ramos
• Texas: 15 ramos
• Califórnia: 12 filiais
• Arizona: 8 ramos

Instituições financeiras

A H&E faz parceria com instituições financeiras para financiamento de equipamentos:

Instituição financeira	Tipo de financiamento	Linha de crédito total
Finanças de equipamentos Fargo Wells	Arrendamento de equipamentos	Linha de crédito rotativo de US $ 250 milhões
Bank of America	Capital de giro	Empréstimo a prazo de US $ 150 milhões

Fornecedores de peças de serviço e manutenção

As principais parcerias de manutenção e peças incluem:

• Fabricante de equipamentos originais (OEM) Fornecedores de peças diretas
• Provedores de peças de pós-venda de terceiros
• Fabricantes de componentes industriais especializados

Parceiros de transporte e logística

Parcerias de logística e transporte:

Parceiro de logística	Tipo de serviço	Movimento anual de equipamentos
XPO Logistics	Transporte de equipamentos	3.500 unidades de equipamento anualmente
TFS Trucking	Entrega de equipamentos regionais	2.100 unidades de equipamento anualmente

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: Atividades -chave

Serviços de aluguel de equipamentos para setores industriais e de construção

A partir do quarto trimestre 2023, a H&E Equipment Services operava uma frota de aluguel no valor de US $ 1,47 bilhão. A receita de aluguel de equipamentos da empresa para o ano de 2023 foi de US $ 1,03 bilhão, representando 70,2% da receita total da empresa.

Categoria de equipamentos de aluguel	Valor da frota	Contribuição da receita de aluguel
Equipamento de construção	US $ 892 milhões	60,7% da receita de aluguel
Equipamento industrial	US $ 578 milhões	39,3% da receita de aluguel

Vendas de equipamentos novos e usados

Em 2023, os serviços de equipamentos da H&E geraram US $ 385,2 milhões com as vendas de equipamentos, responsáveis ​​por 26,2% da receita total da empresa.

• Vendas de novos equipamentos: US $ 267,4 milhões
• Vendas de equipamentos usados: US $ 117,8 milhões

Serviços de manutenção e reparo

A receita de serviço e peças da empresa para 2023 foi de US $ 92,5 milhões, representando 6,3% da receita total.

Tipo de serviço	Receita	Porcentagem da receita total
Serviços de manutenção	US $ 62,3 milhões	4.2%
Serviços de reparo	US $ 30,2 milhões	2.1%

Distribuição de peças do equipamento

A H&E Equipment Services manteve um inventário abrangente de peças com um valor estimado de US $ 45,6 milhões em 2023.

Gerenciamento de frota e rastreamento de equipamentos

A empresa administrou uma frota total de 46.723 unidades de aluguel em 71 locais em 2023, com um Sistema de rastreamento em tempo real, cobrindo 100% de seu inventário de equipamentos.

Métricas de frota	2023 dados
Total de unidades de aluguel	46,723
Locais geográficos	71
Taxa média de utilização da frota	72.3%

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: Recursos -chave

Grande inventário de equipamentos de aluguel

A partir do quarto trimestre 2023, os serviços de equipamentos da H&E mantinham uma frota total de aluguel de equipamentos com um valor contábil líquido de US $ 1,37 bilhão. A composição da frota de equipamentos inclui:

Categoria de equipamento	Porcentagem de frota
Plataformas de trabalho aéreas	32%
Guindastes	25%
Equipamento de terraplenagem	22%
Manuseio de material	15%
Equipamento diverso	6%

Extensas instalações de serviço e manutenção

A H&E opera 86 locais totais de serviço em 12 estados no sul e oeste dos Estados Unidos a partir de 2023.

Força de trabalho de técnico qualificado

Força de trabalho total em 2023: 1.850 funcionários

• Técnicos de serviço: 680
• Profissionais de vendas e aluguel: 540
• Equipe administrativa e de gerenciamento: 630

Rede de distribuição geográfica

Cobertura de serviço nos estados:

• Texas
• Louisiana
• Califórnia
• Arizona
• Novo México
• Colorado
• Utah

Recursos financeiros e de crédito

Métricas financeiras para 2023:

Métrica financeira	Quantia
Receita total	US $ 1,63 bilhão
Total de ativos	US $ 2,41 bilhões
Linhas de crédito disponíveis	US $ 500 milhões
Caixa e equivalentes de dinheiro	US $ 87,3 milhões

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: proposições de valor

Soluções abrangentes de equipamentos para diversas necessidades da indústria

A H&E Equipment Services oferece soluções de equipamentos em vários setores, incluindo:

Setor da indústria	Tipos de equipamentos	Quota de mercado (%)
Construção	Guindastes, plataformas de trabalho aéreo	45.6%
Industrial	Equipamento de manuseio de materiais	22.3%
Energia	Equipamento de geração de energia	18.7%
Infraestrutura	Máquinas especializadas	13.4%

Opções flexíveis de aluguel e compra

Receita de aluguel para 2023:

• Aluguel de curto prazo: US $ 387,2 milhões
• Aluguel de longo prazo: US $ 214,5 milhões
• Receita de aluguel Total: US $ 601,7 milhões

Equipamentos de alta qualidade e bem mantidos

Estatísticas da frota de equipamentos:

Categoria de equipamento	Unidades totais	Idade média (anos)
Plataformas de trabalho aéreas	4,823	3.7
Guindastes	1,256	4.2
Equipamento de terraplenagem	3,412	3.9

Suporte responsivo ao cliente e conhecimento técnico

Métricas de atendimento ao cliente para 2023:

• Locais de serviço total: 87
• Tempo médio de resposta: 2,3 horas
• Classificação de satisfação do cliente: 92,4%

Acesso ao equipamento econômico

Indicadores de desempenho financeiro:

Métrica	2023 valor
Receita total	US $ 1,82 bilhão
Receita de aluguel	US $ 601,7 milhões
Vendas de equipamentos	US $ 412,3 milhões
Receita de serviço	US $ 206,5 milhões

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: relacionamentos com o cliente

Equipes diretas de gerenciamento de vendas e contas

A partir do quarto trimestre 2023, a H&E Equipment Services manteve uma força de vendas direta de 287 profissionais de gerenciamento de contas dedicadas. Geração total de receita da equipe de vendas: US $ 642,3 milhões em vendas anuais.

Métrica da equipe de vendas	2023 dados
Total de representantes de vendas	287
Receita média por representante	US $ 2,24 milhões
Taxa de retenção de clientes	84.6%

Plataformas de aluguel e vendas de equipamentos on -line

Receita da plataforma digital em 2023: US $ 213,7 milhões, representando 33,2% da receita total da empresa.

• Plataforma on -line Visitantes mensais exclusivos: 124.567
• Transações digitais processadas: 36.892 por trimestre
• Taxa de download de aplicativos móveis: 42.300 downloads anuais

Atendimento ao cliente personalizado

Investimento de infraestrutura de atendimento ao cliente em 2023: US $ 8,4 milhões.

Métrica de atendimento ao cliente	2023 desempenho
Representantes de atendimento ao cliente total	164
Tempo médio de resposta	17 minutos
Classificação de satisfação do cliente	4.7/5

Contratos de leasing de equipamentos de longo prazo

Receita de leasing de longo prazo para 2023: US $ 456,2 milhões.

• Duração média do contrato: 48 meses
• Contratos totais de leasing ativo: 2.341
• LEANÇA DE EQUIPAMENTO DE LEANÇA DE MERCADO: 16,7%

Serviços de suporte técnico e consulta

Receita de suporte técnico em 2023: US $ 87,6 milhões.

Métrica de suporte técnico	2023 dados
Equipe total de suporte técnico	92
Interações de suporte anual	47,213
Tempo médio de resolução de suporte	4,2 horas

H&E Equipment Services, Inc. (Hees) - Modelo de Negócios: Canais

Força de vendas direta

A partir de 2023, a H&E Equipment Services mantém uma força de vendas direta de 442 profissionais de vendas nos Estados Unidos. A equipe de vendas abrange 11 estados com concentração primária nas regiões sul e oeste.

Região de vendas	Número de representantes de vendas	Foco do equipamento primário
Região sul	203	Equipamento de construção
Região Ocidental	159	Equipamento industrial
Região Central	80	Segmentos de equipamento misto

Site da empresa e portais online

A H&E Equipment Services opera uma plataforma digital abrangente com as seguintes métricas de engajamento digital:

• Visitantes mensais do site: 127.500
• Solicitações de aluguel de equipamentos on -line: 3.750 por mês
• Listagens de inventário digital: 4.200 unidades de equipamentos

Filiais de aluguel de equipamentos

A partir de 2023, a H&E Equipment Services opera 86 filiais de aluguel em 11 estados.

Estado	Número de ramificações	Receita total da filial
Texas	22	US $ 187,3 milhões
Louisiana	12	US $ 93,6 milhões
Califórnia	16	US $ 142,5 milhões

Feiras e exposições da indústria

Os Serviços de Equipamento da H&E participam de 14 grandes feiras de comércio da indústria anualmente com as seguintes métricas de engajamento:

• Participação anual da Feira de Comércio: 14
• Leads médios gerados por show: 275
• Investimento anual total da feira: US $ 1,2 milhão

Plataformas de marketing e comunicação digital

Os canais de marketing digital para os serviços de equipamentos de H&E incluem:

Plataforma	Seguidores/conexões	Taxa de engajamento anual
LinkedIn	38,500	4.2%
Facebook	22,700	3.7%
Twitter	15,300	2.9%

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: segmentos de clientes

Empresas de construção

A partir do quarto trimestre de 2023, a H&E Equipment Services serve aproximadamente 4.500 empresas de construção em 11 estados do oeste e do sul dos EUA. A receita total de aluguel de equipamentos de construção para 2023 foi de US $ 1,2 bilhão.

Tipo de segmento	Número de clientes	Valor médio de aluguel de equipamentos
Construção residencial	1,250	US $ 375.000 por ano
Construção Comercial	2,100	US $ 625.000 por ano
Construção civil pesada	1,150	US $ 850.000 por ano

Fabricantes industriais

A H&E atende 2.300 clientes de fabricação industrial com soluções de aluguel de equipamentos especializados. O segmento industrial gerou US $ 450 milhões em receita para 2023.

• Participação de mercado de aluguel de equipamentos de fabricação: 12,5%
• Valor médio anual de aluguel de equipamentos: US $ 195.000
• Cobertura geográfica: 9 estados

Empresas de desenvolvimento de infraestrutura

O segmento de desenvolvimento de infraestrutura representa US $ 380 milhões em receita anual, com 850 clientes ativos em 2023.

Tipo de infraestrutura	Número de clientes	Valor médio de aluguel
Infraestrutura de transporte	350	$475,000
Infraestrutura energética	250	$625,000
Infraestrutura municipal	250	$285,000

Projetos governamentais e municipais

O segmento do governo gerou US $ 275 milhões em receita de aluguel de equipamentos para 2023, atendendo a 425 clientes municipais e governamentais.

• Clientes do governo federal: 125
• Clientes do governo do estado: 180
• Clientes municipais locais: 120
• Valor médio anual de aluguel: US $ 647.000

Pequenas a grandes empresas

O segmento de negócios diversificado gerou US $ 220 milhões em receita, atendendo a 3.100 empresas em vários setores em 2023.

Tamanho comercial	Número de clientes	Valor médio de aluguel
Pequenas empresas	1,800	$65,000
Empresas médias	900	$185,000
Grandes empresas	400	$425,000

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: estrutura de custos

Aquisição e manutenção de equipamentos

A partir de 2023 Relatório Anual, a H&E Equipment Services investiu US $ 506,8 milhões em equipamentos de aluguel. O valor total do equipamento de aluguel líquido foi de US $ 1,23 bilhão.

Categoria de equipamento	Investimento anual	Custo de manutenção
Equipamento de construção	US $ 342,5 milhões	US $ 47,3 milhões
Equipamento industrial	US $ 164,3 milhões	US $ 22,6 milhões

Despesas operacionais e de instalações

A instalação total e as despesas operacionais para 2023 foram de US $ 178,4 milhões.

• Aluguel e utilitários da instalação: US $ 42,6 milhões
• Manutenção da instalação: US $ 23,8 milhões
• Custos de seguro: US $ 36,2 milhões
• Infraestrutura de tecnologia: US $ 15,7 milhões

Salários e treinamento de funcionários

As despesas totais de pessoal para 2023 foram de US $ 263,9 milhões.

Categoria de funcionários	Salário médio	Investimento de treinamento
Gestão executiva	$425,000	US $ 1,2 milhão
Pessoal de vendas	$89,500	US $ 3,6 milhões
Equipe técnica	$76,300	US $ 4,1 milhões

Transporte e logística

As despesas de transporte e logística totalizaram US $ 92,7 milhões em 2023.

• Manutenção da frota: US $ 38,4 milhões
• Custos de combustível: US $ 29,6 milhões
• Software de logística: US $ 7,2 milhões
• Salários dos motoristas: US $ 17,5 milhões

Investimentos de marketing e vendas

O gasto total de marketing e vendas em 2023 foi de US $ 54,3 milhões.

Canal de marketing	Investimento	Porcentagem de orçamento
Marketing digital	US $ 22,1 milhões	40.7%
Feiras	US $ 12,6 milhões	23.2%
Mídia impressa e tradicional	US $ 8,7 milhões	16%
Comissões da equipe de vendas	US $ 10,9 milhões	20.1%

H&E Equipment Services, Inc. (HEES) - Modelo de negócios: fluxos de receita

Taxas de aluguel de equipamentos

Para o ano fiscal de 2023, a H&E Equipment Services reportou receitas de aluguel de equipamentos de US $ 562,4 milhões. O tamanho da frota de aluguel foi de aproximadamente US $ 1,3 bilhão em custo de equipamento original.

Categoria de receita de aluguel	Valor (2023)
Aluguel de equipamentos de construção	US $ 412,3 milhões
Aluguel de equipamentos industriais	US $ 98,6 milhões
Outro aluguel de equipamentos especializados	US $ 51,5 milhões

Vendas de equipamentos (novas e usadas)

A receita de vendas de equipamentos para 2023 totalizou US $ 370,2 milhões.

Categoria de vendas de equipamentos	Valor (2023)
Vendas de novos equipamentos	US $ 256,7 milhões
Vendas de equipamentos usados	US $ 113,5 milhões

Receita de peças e serviços

A receita de peças e serviços atingiu US $ 167,8 milhões em 2023.

• Vendas de peças: US $ 89,3 milhões
• Reparos de serviço: US $ 78,5 milhões

Financiamento e renda de leasing

O financiamento e a renda do leasing para 2023 foi de US $ 24,6 milhões.

Serviços de manutenção e reparo

A receita total do serviço de manutenção e reparo foi de US $ 92,4 milhões em 2023.

Tipo de serviço de manutenção	Valor (2023)
Manutenção preventiva	US $ 42,1 milhões
Manutenção corretiva	US $ 50,3 milhões

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose H&E Equipment Services, Inc. over the competition, right as the company was heading into its merger with Herc Rentals in mid-2025. The value propositions are built around a comprehensive, multi-faceted approach to equipment support.

Diverse fleet mix: aerial, earthmoving, material handling, and specialty lines

H&E Equipment Services, Inc. offers a broad selection of heavy construction and industrial equipment. This variety means a single provider can often meet diverse project needs, which simplifies procurement for the customer. As of the first quarter of 2025, the rental fleet, valued at original acquisition cost, stood at approximately $2.9 billion.

• Aerial work platforms
• Earthmoving equipment
• Material handling equipment
• Other general and specialty lines

Integrated service model: rental, new/used sales, parts, and service

The business isn't just about renting; it's about providing a full lifecycle of equipment support. This integration captures revenue across multiple touchpoints. For the first quarter of 2025, the revenue streams clearly show this mix:

Revenue Segment	Q1 2025 Revenue Amount
Total Equipment Rental Revenues	$274.0 million
Sales of Rental Equipment	$23.9 million
Sales of New Equipment	$7.4 million

The rental margin for Q1 2025 was 43.6%, showing the profitability of the core rental offering. Also, the Parts, Service and Other Revenues segment supports the entire ecosystem.

One of the industry's youngest rental fleets (pre-acquisition)

Keeping the fleet modern means less downtime and better reliability for you. This is a key differentiator. As of March 31, 2025, the average age of the rental fleet was 43.2 months. Honestly, that's quite a bit newer than the reported industry average age of 49.3 months for the same period. This focus on fleet age was a competitive advantage leading up to the expected mid-2025 merger close.

Localized service and quick response via the branch network

You get service where you work. H&E Equipment Services, Inc. maintained a significant physical footprint to ensure quick support. As of Q3 2024, the company operated 160 branch locations across 31 states in high-growth geographies. Plus, they were actively expanding, opening four new branches in the first quarter of 2025 alone.

Digital self-service capabilities via the CONNECT platform

The company offered digital tools to streamline transactions. CONNECT is positioned as the platform to transform how you rent equipment when you need it. While specific usage metrics aren't public, the platform's existence is a clear value-add for efficient customer interaction.

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Customer Relationships

You're looking at how H&E Equipment Services, Inc. (HEES) connects with its customers, which is now deeply intertwined with Herc Holdings Inc. following the acquisition closing on June 2, 2025.

Dedicated direct sales force for large and national accounts

The Sales of New Equipment segment specifically utilizes a professional sales force to handle transactions. Prior to the merger, H&E Equipment Services used its infrastructure to effectively service multi-regional and national accounts. Post-integration in Q3 2025, the combined entity noted that national accounts delivered another strong quarter. As of December 31, 2022, H&E had an aggregate of 301 salespeople in its sales force.

Localized, high-touch service at the branch level

The strategy relies heavily on its physical presence to service local and regional customers closely. As of the Q1 2025 report, H&E operated 160 branch locations across 31 states in the U.S. The company continued this strategy by opening four new branches in Q1 2025, despite the merger activity. The combined Herc/HEES entity aims for a network spanning 400+ branches.

Digital self-service via the CONNECT platform for reservations and payments

The CONNECT platform was designed as the easiest way to rent equipment online. Following the merger, the full IT integration was completed in Q3 2025, migrating all acquired branches onto Herc\'s systems. The customer-facing technology is now unified under the ProControl by Herc RentalsTM platform. This unified dashboard spans CRM and logistics, helping to streamline customer interactions.

Account management focused on long-term customer retention

H&E Equipment Services historically focused on building long-term relationships by offering tailored solutions. The company maintains complementary Parts and Services segments, which help maintain the rental fleet in excellent condition, supporting the quality of service offered to customers. The merger is expected to enhance operating resiliency and broaden market reach, which supports long-term customer relationships.

Transactional relationships for short-term, small rentals

The core business remains equipment rentals, offering customers flexibility without large capital investments, which naturally supports transactional, short-term needs. The original equipment cost of the rental fleet as of March 31, 2025, was approximately $2.9 billion. In Q1 2025, total equipment rental revenues were $274.0 million.

Here's a quick look at the scale of the operation relevant to customer touchpoints as of early to mid-2025:

Metric	Value/Amount	Date/Period Reference
Number of Branch Locations (HEES)	160	Q1 2025
States Served (HEES)	31	Q1 2025
Original Acquisition Cost of Rental Fleet (HEES)	Approx. $2.9 billion	March 31, 2025
Total Equipment Rental Revenue (HEES)	$274.0 million	Q1 2025
Salespeople (HEES)	301	December 31, 2022
Combined Branch Network Target (Herc/HEES)	400+	Projected Post-Merger

The integration efforts, including migrating all acquired branches onto Herc\'s systems, are a major focus for streamlining customer interactions across the expanded footprint. The company is also planning to consolidate some general rental branches and repurpose others into stand-alone specialty equipment locations over the next six months.

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Channels

You're looking at how H&E Equipment Services, Inc. gets its equipment and services in front of the customer, which is a mix of physical presence and digital tools. Honestly, for a heavy equipment player, the brick-and-mortar footprint is still king, but the digital layer is getting more important.

The backbone of the physical channel is the extensive branch network. As of the first quarter of 2025, H&E Equipment Services operated 160 branch locations spanning 31 states across high-growth U.S. geographies. This network supports both rental transactions and equipment sales. To be fair, the company was still expanding this footprint, having opened four new branches in Q1 2025 alone. This physical density helps them compete on availability and rapid deployment.

Direct customer engagement relies heavily on the sales force. While I don't have the exact headcount for the direct sales team, the company had 2,431 total employees as of 2025, many of whom are dedicated to servicing the four core revenue streams: rentals, sales of rental equipment, new equipment sales, and parts/service. The Sales of New Equipment segment, for instance, explicitly sells equipment through a professional sales force. This team is crucial for on-site relationships and closing larger, project-based deals.

The digital channel centers on the CONNECT platform. This isn't just a static website; it's a functional portal allowing customers to manage their entire rental lifecycle online. You can reserve equipment, submit service requests, take items off-rent, and view telematics data 24/7. The platform offers customized reports and handles online billing and payments, which definitely streamlines the administrative side for the customer.

The monetization of the fleet, which had an original equipment cost (OEC) of roughly $2.9 billion as of Q1 2025, flows through several channels. The table below breaks down the revenue contribution from these primary sales and rental channels based on the standalone Q1 2025 results:

Channel/Segment	Q1 2025 Revenue (Millions USD)	Year-over-Year Change (Q1 2024 vs Q1 2025)
Equipment Rentals	$274.0	-7.2%
Sales of Rental Equipment (Used)	$23.9	-50.3%
Sales of New Equipment	$7.4	-28.7%
Parts, Service, and Other Revenues	$14.2 (Calculated)	Decreasing

The used equipment channel, represented by the Sales of Rental Equipment segment, saw a steep drop in Q1 2025 revenue to $23.9 million, down 50.3% from the prior year. Post-merger, the combined entity is planning a significant offloading of aged equipment, targeting $1.1 billion to $1.2 billion in original-equipment-cost disposals for the full year 2025, which suggests a major push through wholesale or auction channels later in the year.

For logistics beyond the immediate branch service area, H&E Equipment Services relies on external support. The channel structure includes:

• Physical branch network of 160 locations across 31 states.
• Direct sales team supporting the Sales of New Equipment segment.
• The CONNECT platform for digital reservations and account management.
• Third-party freight and delivery services for equipment transport to job sites.
• Used equipment channels, evidenced by the $23.9 million in Q1 2025 sales of rental equipment.

The overall channel strategy is clearly anchored by physical density, supplemented by digital efficiency tools, and supported by the monetization of the fleet through direct sales and used equipment disposition.

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Customer Segments

H&E Equipment Services, Inc. historically served a diverse base of approximately 43,100 customers (pre-acquisition). Following the merger completion on June 2, 2025, the customer base is now integrated into Herc Holdings Inc., which reports a diversified customer mix across its operations.

The business generates revenue across four primary segments, which directly correlate to the types of customers served:

Revenue Segment	Post-Acquisition Customer Allocation (Herc Q2 2025)
Equipment Rentals	37% (Contractors)
Sales of Rental Equipment	25% (Industrial Clients)
Sales of New Equipment	17% (Infrastructure and Government)
Parts, Service, and Other Revenues	14% (Commercial Facilities)
Total Core Segments	93%

The largest customer group, historically driven by the equipment rentals segment, includes non-residential construction contractors. This segment, along with industrial and manufacturing companies, forms the core demand base for heavy equipment services. The infrastructure focus is supported by projects related to infrastructure and public utility projects, which are projected to see growth through 2028.

Further diversification comes from commercial companies and municipalities, which fall under the commercial facilities category in the combined entity's reporting. The company's operational scale, which supports these segments, includes:

• 160 branch locations across 31 states in the U.S. as of early 2025.
• A rental fleet size of 63,014 units based on original equipment cost.
• The total original acquisition cost of the rental fleet was approximately $2.9 billion as of the first quarter of 2025.

The post-merger customer base also includes an other sectors category accounting for 7% of revenue streams.

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Cost Structure

You're looking at the core costs H&E Equipment Services, Inc. (HEES) faced as it navigated the merger with Herc Rentals in 2025. The cost structure is heavily weighted toward owning and maintaining that massive fleet of equipment.

High capital expenditure for fleet renewal and expansion (CapEx)

Capital spending remains a significant drain, even as the company integrates into Herc Rentals' larger structure. For H&E Equipment Services standalone, fleet investment was ongoing leading up to the merger close, which was anticipated mid-2025. Post-acquisition, Herc's guidance reflects the combined investment strategy.

• Herc Rentals' gross capital expenditures guidance for full-year 2025 was between $900 million and $1.1 billion.
• Herc Rentals' net rental equipment capital expenditures for the first nine months of 2025 totaled $529 million.
• Herc Rentals' fleet expenditures in Q1 2025 were $200 million.

Depreciation expense on the $2.9 billion rental fleet

The value of the assets themselves drives a huge non-cash cost. The sheer size of the fleet means depreciation is a major component of the cost of revenue, even if the specific expense amount isn't isolated here. You need to keep an eye on utilization to offset this fixed cost.

The original equipment cost of the H&E Rentals fleet as of March 31, 2025, stood at approximately $2.9 billion, which was an increase of $108.1 million, or 3.8%, compared to the end of Q1 2024. The average age of the fleet at that time was 43.2 months.

Selling, General, and Administrative (SG&A) expenses, which were $111.6 million in Q1 2025

SG&A reflects the overhead of running the branch network and corporate functions. Merger activity and branch expansion clearly impacted this line item in early 2025.

Metric	Q1 2025 Amount	Q1 2024 Amount
SG&A Expenses	$111.6 million	$114.3 million
SG&A as % of Total Revenues	34.9%	30.8%

The increase in SG&A as a percentage of revenue in Q1 2025, up to 34.9% from 30.8% in Q1 2024, was partly due to approximately $7.7 million in expenses tied to branches opened or acquired during or after Q1 2024.

Personnel costs for technicians and sales staff

Personnel is a core driver within SG&A and service costs. While specific 2025 personnel costs aren't broken out, the structure relies on a skilled workforce to maintain that fleet.

• As of December 31, 2022, the workforce included approximately 553 service technicians.
• As of December 31, 2022, the sales force aggregated 301 salespeople.

Interest expense on debt, now integrated into Herc's larger structure

Debt servicing costs are a direct financial cost. H&E's standalone interest expense decreased year-over-year in Q1 2025, but the overall debt load for the combined entity is substantially higher following the acquisition.

• H&E Equipment Services' interest expense in Q1 2025 was $16.0 million.
• H&E Equipment Services' interest expense in Q1 2024 was $18.4 million.
• Herc Rentals' net debt at the end of the nine months ending September 30, 2025, was $8.2 billion, more than doubling due to the H&E acquisition.

Finance: draft 13-week cash view by Friday.

H&E Equipment Services, Inc. (HEES) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for H&E Equipment Services, Inc.'s revenue generation as of late 2025. Here's the quick math on where the money came from in the first quarter of 2025, which sets the stage for the Trailing Twelve Months (TTM) view.

The total revenue reported for the first quarter ending March 31, 2025, was $319.5 million. This figure reflects a 14.0% decline compared to the same period in 2024.

The primary revenue drivers for H&E Equipment Services, Inc. are detailed below, showing the contribution of each segment for Q1 2025:

Revenue Stream	Q1 2025 Amount (Millions USD)
Equipment Rental Revenue	$274.0
Sales of Used Rental Equipment	$23.9
Sales of New Equipment	$7.4
Parts, Service, and Other Revenues (Calculated)	$14.2

The equipment rental revenue, the core of the business, stood at $274.0 million for Q1 2025, representing a 7.2% decrease year-over-year. Sales of used rental equipment saw a significant drop, coming in at $23.9 million. Sales of new equipment contributed $7.4 million in the quarter, down 28.7% from the prior year.

Looking at the broader picture, the Trailing Twelve Months (TTM) revenue as of late 2025 was approximately $1.46 Billion USD. This TTM figure represents a -3.52% change year-over-year.

You can see the breakdown of the Q1 2025 revenue components here:

• Equipment Rental Revenue: $274.0 million
• Sales of Used Rental Equipment: $23.9 million
• Sales of New Equipment: $7.4 million
• Parts, Service, and Other Revenues: $14.2 million (Derived)

Also, note the rental fleet metrics from that quarter; the average time utilization was 60.3%, and rental rates declined 2.0% compared to Q1 2024. Finance: draft 13-week cash view by Friday.