Herc Holdings Inc. (HRI): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico do aluguel de equipamentos, a Herc Holdings Inc. (HRI) se destaca como uma potência, transformando como as empresas acessam e utilizam máquinas críticas em diversas indústrias. Com um modelo de negócios sofisticado que vai além do arrendamento simples de equipamentos, a HRI oferece soluções abrangentes que capacitam empresas de construção, fabricantes industriais e agências governamentais a otimizar sua eficiência operacional. Ao alavancar uma rede robusta de tecnologias avançadas, parcerias estratégicas e uma abordagem de serviço flexível, a Herc Holdings criou uma proposta de valor única que redefine o aluguel de equipamentos no mercado competitivo de hoje.

Herc Holdings Inc. (HRI) - Modelo de Negócios: Parcerias -Chaves

Fabricantes de equipamentos

A Herc Holdings mantém parcerias estratégicas com os principais fabricantes de equipamentos:

Fabricante	Detalhes da parceria	Tipos de equipamentos
Caterpillar Inc.	Fornecedor de equipamentos primários	Máquinas de construção, industrial e pesado
Equipamento de construção da Volvo	Contrato de aquisição de equipamentos de longo prazo	Escavadeiras, carregadeiras de rodas e equipamentos compactos
Indústrias Genie	Parceria da plataforma de trabalho aéreo	Elevadores de boom, elevadores de tesoura, tele -manipuladores

Fornecedores de Serviço Industrial e Construção

A Herc Holdings colabora com vários prestadores de serviços:

• Empreiteiros Nacionais de Construção
• Empresas de manutenção industrial
• Provedores de serviços do setor de energia
• Contratados de projetos de infraestrutura governamental

Rede de aluguel e parceiros de distribuição

As parcerias de distribuição incluem:

Tipo de parceiro	Número de parceiros	Cobertura geográfica
Centros de aluguel regional	285	Estados Unidos e Canadá
Mercados de equipamentos on -line	7	Plataformas digitais nacionais

Empreiteiros de serviço de manutenção e reparo

Principais redes de parceria de manutenção:

• Técnicos de reparo de equipamentos certificados
• Redes de serviços de reparo móvel
• Centros de diagnóstico de equipamentos especializados

Valor do ecossistema total de parceria: aproximadamente US $ 750 milhões em receita colaborativa anual

Herc Holdings Inc. (HRI) - Modelo de negócios: Atividades -chave

Serviços de aluguel e leasing de equipamentos

A partir do quarto trimestre de 2023, a Herc Holdings operava uma frota de aproximadamente 45.000 unidades de aluguel em várias categorias de equipamentos. A empresa gerou US $ 2,16 bilhões em receita total para o ano fiscal de 2023, com as receitas de aluguel representando US $ 1,98 bilhão.

Categoria de equipamento	Porcentagem de frota
Plataformas de trabalho aéreas	28%
Equipamento de manuseio de materiais	22%
Equipamento de terraplenagem	18%
Caminhões e reboques	15%
Outros equipamentos especializados	17%

Gerenciamento e manutenção da frota

A Herc Holdings investiu US $ 377 milhões em despesas de capital para manutenção e expansão da frota em 2023. A empresa mantém um sofisticado sistema de gerenciamento de frotas com:

• Rastreamento de equipamentos em tempo real
• Protocolos de manutenção preditivos
• Monitoramento abrangente de utilização de ativos

Suporte ao cliente e assistência técnica

A empresa opera 260 locais de aluguel nos Estados Unidos e no Canadá, com uma equipe dedicada de suporte ao cliente de aproximadamente 2.800 funcionários. O tempo médio de resposta ao cliente é inferior a 2 horas para solicitações de suporte técnico.

Vendas e remarketing de equipamentos

Em 2023, a Herc Holdings gerou US $ 180 milhões em atividades de vendas e remarketing de equipamentos. A empresa geralmente mantém um ciclo de vida do equipamento de 3-5 anos antes de remarketing.

Canal de remarketing	Porcentagem de vendas
Leilões online	42%
Vendas diretas para contratados	35%
Mercados por atacado	23%

Gerenciamento de logística e transporte

A Herc Holdings mantém uma frota de transporte de 1.200 veículos de entrega, apoiando o movimento de equipamentos em seus 260 locais. A empresa processou aproximadamente 85.000 transações de entrega e coleta de equipamentos em 2023.

• Distância média de entrega: 75 milhas
• Taxa de entrega no prazo: 94%
• Eficiência de combustível da frota: 8,2 milhas por galão

Herc Holdings Inc. (HRI) - Modelo de negócios: Recursos -chave

Frota de equipamentos grandes e diversificados

A partir do quarto trimestre de 2023, a Herc Holdings Inc. mantém uma frota de aluguel com um custo total de US $ 4,9 bilhões. A composição da frota inclui:

Categoria de equipamento	Porcentagem de frota
Equipamento de construção	42%
Equipamento industrial	28%
Plataformas de trabalho aéreas	18%
Veículos especiais	12%

Extensa rede nacional de aluguel

A Herc Holdings opera 267 locais de aluguel nos Estados Unidos a partir de 2023, cobrindo:

• 50 estados
• Principais áreas metropolitanas
• Principais regiões industriais

Força de trabalho técnica qualificada

Contagem total de funcionários: 6.300 em 31 de dezembro de 2023, com:

Categoria de funcionários	Percentagem
Equipe técnica	45%
Vendas e suporte	35%
Gerenciamento	20%

Tecnologia avançada e plataformas digitais

Investimentos de tecnologia em 2023: US $ 42 milhões, com foco em:

• Sistemas de gerenciamento de aluguel digital
• Rastreamento de equipamentos em tempo real
• Desenvolvimento de aplicativos móveis
• Tecnologias de manutenção preditiva

Capital financeiro e linhas de crédito fortes

Métricas financeiras para 2023:

Métrica financeira	Quantia
Dívida total	US $ 1,2 bilhão
Linhas de crédito disponíveis	US $ 500 milhões
Caixa e equivalentes de dinheiro	US $ 187 milhões

Herc Holdings Inc. (HRI) - Modelo de Negócios: Proposições de Valor

Soluções abrangentes de aluguel de equipamentos

A Herc Holdings Inc. gerou receita total de US $ 2,4 bilhões em 2022, com a receita de aluguel de equipamentos representando US $ 2,2 bilhões desse total. A empresa opera uma frota de aproximadamente 42.000 unidades de aluguel em vários setores.

Segmento da indústria	Tipos de equipamentos de aluguel	Porcentagem de receita
Construção	Plataformas de trabalho aéreas	38%
Industrial	Geração de energia	22%
Municipal	Equipamento de utilidade	15%
Outros setores	Máquinas especializadas	25%

Opções de aluguel flexíveis e escaláveis

Herc oferece durações de aluguel que variam de:

• Aluguel diário
• Aluguel semanal
• Aluguel mensal
• Aluguel de projetos de longo prazo

Equipamentos de alta qualidade e bem mantidos

A partir de 2022, a HERC investiu US $ 356 milhões em investimentos e manutenção de frota, garantindo a qualidade e a confiabilidade do equipamento.

Categoria de equipamento	Idade média da frota	Ciclo de reposição
Plataformas de trabalho aéreas	3,2 anos	4-5 anos
Equipamento de energia	2,8 anos	4-6 anos
Equipamento de construção pesada	4,1 anos	5-7 anos

Alternativas econômicas para a propriedade do equipamento

O HERC oferece economia de custos por meio de opções de aluguel, com clientes potencialmente economizando até 40-60% em comparação com os custos de compra e manutenção de equipamentos.

Rede nacional de serviço e suporte

A HERC opera 265 locais de aluguel em 41 estados dos EUA e Canadá, fornecendo ampla cobertura e apoio.

Região	Número de locais	Cobertura de serviço
Sudeste	72 locais	27%
Sudoeste	55 locais	21%
Nordeste	63 locais	24%
Centro -Oeste	50 locais	19%
Oeste/Canadá	25 locais	9%

Herc Holdings Inc. (HRI) - Modelo de Negócios: Relacionamentos do Cliente

Gerenciamento de conta dedicado

A partir de 2024, a Herc Holdings fornece gerenciamento de contas dedicado para os principais clientes comerciais e industriais. A empresa atende a aproximadamente 11.500 clientes comerciais ativos em vários setores.

Segmento de clientes	Gerentes de conta dedicados	Receita média anual por conta
Construção	42	$875,000
Industrial	28	$1,250,000
Governo	15	$1,500,000

Plataformas de serviço online e móvel

A Herc Holdings opera uma plataforma digital abrangente com as seguintes métricas de engajamento digital:

• Uso da plataforma de aluguel online: 67% do total de transações de aluguel
• Downloads de aplicativos móveis: 125.000
• Valor da transação da plataforma digital: US $ 412 milhões em 2023

Treinamento do cliente e suporte técnico

Herc fornece um amplo suporte técnico por meio de:

Canal de suporte	Horário de apoio anual	Tempo médio de resposta
Suporte telefônico	52,000	12 minutos
Chat online	24,000	8 minutos
Treinamento técnico no local	3,600	N / D

Acordos contratuais de longo prazo

A Herc Holdings mantém contratos significativos de longo prazo em vários setores:

• Valor total de contrato de longo prazo: US $ 875 milhões
• Duração média do contrato: 3,2 anos
• Taxa de renovação do contrato: 82%

Consulta de equipamentos personalizados

A empresa oferece serviços de consulta de equipamentos especializados com as seguintes métricas:

Tipo de consulta	Consultas anuais	Valor médio de consulta
Seleção de equipamentos	4,200	$6,500
Gerenciamento de frota personalizada	1,800	$42,000
Otimização técnica	2,600	$18,500

Herc Holdings Inc. (HRI) - Modelo de Negócios: Canais

Equipe de vendas diretas

No quarto trimestre 2023, a Herc Holdings empregou 307 representantes de vendas nos Estados Unidos. A equipe de vendas direta gerou US $ 1,87 bilhão em receita de aluguel de equipamentos em 2023.

Métrica da equipe de vendas	Valor
Total de representantes de vendas	307
2023 Receita de vendas direta	US $ 1,87 bilhão

Portal de aluguel online

A plataforma digital da Herc Rentals processou 42% das transações de aluguel de equipamentos em 2023. O Portal Online suporta aproximadamente 3.500 modelos de equipamentos exclusivos disponíveis para a reserva de aluguel digital.

Estatística do portal online	Valor
Porcentagem de transações digitais	42%
Modelos de equipamentos disponíveis online	3,500

Aplicativo móvel

O aplicativo móvel da Herc Rentals, lançado em 2021, suporta a disponibilidade de equipamentos em tempo real e a geração de cotação instantânea. O aplicativo foi baixado 87.500 vezes em dezembro de 2023.

Locais de aluguel físico

A Herc Holdings opera 269 locais de aluguel em 46 estados dos EUA em 2024. Esses locais cobrem um total de 7,2 milhões de pés quadrados de espaço operacional.

Métrica de localização física	Valor
Locais totais de aluguel	269
Estados cobertos	46
Espaço operacional total	7,2 milhões de pés quadrados

Feiras e exposições da indústria

A Herc Holdings participou de 22 grandes feiras de comércio da indústria em 2023, incluindo Conexpo, ARA Show e Conexpo-Con/AGG, gerando aproximadamente US $ 45 milhões em leads e novas aquisições de clientes.

• Participação do CONEXPO
• ARA Show Engagement
• Exposição CONEXPO-CON/AGG

Herc Holdings Inc. (HRI) - Modelo de negócios: segmentos de clientes

Empresas de construção

A Herc Holdings serve empresas de construção com soluções de aluguel de equipamentos em vários setores.

Características do segmento	Tamanho de mercado	Receita de aluguel
Construção residencial	Tamanho do mercado de US $ 1,2 trilhão	US $ 378 milhões em 2023
Construção Comercial	Tamanho do mercado de US $ 1,5 trilhão	US $ 612 milhões em 2023

Fabricantes industriais

Os clientes industriais de fabricação utilizam os serviços de aluguel de equipamentos especializados da HERC.

• Receita de aluguel de equipamentos de fabricação: US $ 245 milhões em 2023
• Mercado total de fabricação industrial: US $ 2,3 trilhões
• Duração média do aluguel do equipamento: 45 dias

Agências governamentais

A Herc Holdings fornece serviços de aluguel de equipamentos para entidades do governo federal, estadual e local.

Segmento do governo	Volume de aluguel	Valor do contrato
Governo federal	US $ 187 milhões	US $ 89,5 milhões
Governo do Estado	US $ 142 milhões	US $ 67,3 milhões

Empresas de desenvolvimento de infraestrutura

Os projetos de infraestrutura representam um segmento de clientes significativo para a Herc Holdings.

• Receita de aluguel de infraestrutura: US $ 423 milhões em 2023
• Valor médio de aluguel de equipamentos de projeto: US $ 1,2 milhão
• Frota de equipamentos de aluguel dedicada à infraestrutura: 35%

Indústrias de eventos e entretenimento

A Herc Holdings apoia setores de eventos e entretenimento com aluguel de equipamentos especializados.

Tipo de evento	Receita de aluguel	Penetração de mercado
Eventos em larga escala	US $ 67 milhões	22% de participação de mercado
Produção de entretenimento	US $ 53 milhões	18% de participação de mercado

Herc Holdings Inc. (HRI) - Modelo de negócios: estrutura de custos

Aquisição e manutenção de equipamentos

A partir do quarto trimestre de 2023, a Herc Holdings registrou um investimento total da frota de US $ 4,7 bilhões. Os custos anuais de manutenção de equipamentos da empresa foram de aproximadamente US $ 285 milhões.

Categoria de equipamento	Custo de manutenção anual	Ciclo de reposição
Equipamento de construção	US $ 162 milhões	5-7 anos
Plataformas de trabalho aéreas	US $ 73 milhões	4-6 anos
Equipamento industrial	US $ 50 milhões	6-8 anos

Salários e treinamento de funcionários

Em 2023, a Herc Holdings teve despesas totais de pessoal de US $ 622 milhões, com uma compensação média dos funcionários de US $ 68.500.

• Força de trabalho total: 9.100 funcionários
• Investimento anual de treinamento: US $ 4,3 milhões
• Custo médio de treinamento por funcionário: $ 472

Tecnologia e infraestrutura digital

O investimento em tecnologia para 2023 foi de US $ 36,2 milhões, representando 1,8% da receita total.

Categoria de tecnologia	Gastos anuais
Infraestrutura de TI	US $ 18,5 milhões
Plataformas digitais	US $ 11,7 milhões
Segurança cibernética	US $ 6 milhões

Transporte de frota e logística

Os custos de transporte e logística para 2023 totalizaram US $ 215 milhões.

• Despesas de combustível: US $ 87,3 milhões
• Manutenção do veículo: US $ 62,5 milhões
• Infraestrutura de transporte: US $ 65,2 milhões

Despesas de marketing e vendas

As despesas de marketing e vendas em 2023 foram de US $ 92,4 milhões.

Canal de marketing	Gastos anuais
Marketing digital	US $ 38,6 milhões
Feiras e eventos	US $ 24,8 milhões
Operações da equipe de vendas	US $ 29 milhões

Herc Holdings Inc. (HRI) - Modelo de negócios: fluxos de receita

Taxas de aluguel de equipamentos

Para o ano fiscal de 2023, a Herc Holdings registrou receitas totais de aluguel de US $ 2,4 bilhões. A frota de aluguel da empresa gerou uma taxa média de aluguel de 45,5% em várias categorias de equipamentos.

Categoria de equipamento	Contribuição da receita de aluguel
Equipamento de construção	US $ 1,2 bilhão
Equipamento industrial	US $ 680 milhões
Equipamento especializado	US $ 520 milhões

Contratos de leasing de curto e longo prazo

Em 2023, a Herc Holdings gerou US $ 1,6 bilhão em contratos de leasing, com a seguinte quebra:

• Aluguel de curto prazo: US $ 1,1 bilhão
• Arrendamentos de longo prazo: US $ 500 milhões

Vendas e remarketing de equipamentos

O segmento de vendas de equipamentos usados ​​da empresa gerou US $ 325 milhões em 2023, com uma margem bruta de 35,2% nas vendas de equipamentos.

Tipo de equipamento	Receita de vendas	Margem bruta
Equipamento de construção	US $ 185 milhões	38%
Equipamento industrial	US $ 95 milhões	32%
Equipamento especializado	US $ 45 milhões	30%

Serviços de manutenção e reparo

Os serviços de manutenção e reparo geraram US $ 210 milhões em receita para 2023, representando 8,8% da receita total da empresa.

Ofertas de serviços auxiliares

Receitas adicionais de serviços, incluindo serviços de transporte, logística e suporte, contribuíram com US $ 155 milhões para a receita total da empresa em 2023.

Serviço auxiliar	Receita
Serviços de transporte	US $ 85 milhões
Suporte logístico	US $ 45 milhões
Consultoria de equipamentos	US $ 25 milhões

Herc Holdings Inc. (HRI) - Canvas Business Model: Value Propositions

Full-service equipment rental and comprehensive solutions means Herc Holdings Inc. offers a wide array of products and services to help customers work safely and effectively. The company provides its classic fleet alongside ProSolutions offering, which includes industry-specific, solutions-based services. For the nine months ended September 30, 2025, total revenues reached $3,167 million. In the third quarter of 2025, equipment rental revenue specifically was $1,122 million, contributing to total revenues of $1,304 million for that quarter. The 2024 pro forma total revenues were approximately $5.1 billion. You can see the scale of the business in the table below.

Metric	Value as of Late 2025 Data
Total Revenues (9 Months Ended 9/30/2025)	$3,167 million
Total Revenues (Q3 2025)	$1,304 million
Equipment Rental Revenue (Q3 2025)	$1,122 million
Total Fleet Value (OEC as of 9/30/2025)	$9.6 billion
Employees (as of 9/30/2025)	Approximately 9,900
Regular Quarterly Dividend Declared (Dec 2025)	$0.70 per share

Specialty equipment and services for complex mega projects are a key focus, especially given the current operating environment. The company's fleet composition as of September 30, 2025, shows a dedicated portion for these areas. The ProSolutions offering covers areas like power generation, climate control, and trench shoring equipment. For Q3 2025, revenue diversification showed that contractors made up 41% of revenue, while infrastructure and government accounted for 16%.

Operational efficiency is supported by digital fleet management through ProControl™. Herc Holdings Inc. completed the full IT systems integration of its acquired branches onto its network, unifying systems including fleet management and ProControl, in approximately 90 days as of Q3 2025. This unified dashboard helps drive optimization. Dollar utilization, a key metric for efficiency, was reported at 39.9% in the third quarter of 2025, compared to 42.2% in the prior-year period. In the first quarter of 2025, dollar utilization was 37.6%.

Scale and availability are provided by a broad geographic footprint across North America. As of September 30, 2025, Herc Holdings Inc. operated 612 company-operated branches in the United States and Canada. The acquisition of H&E Equipment Services established a leading presence in 11 of the top 20 rental regions. Furthermore, the company expanded its physical presence by opening 17 greenfield locations during the first nine months of 2025. You can see the scale metrics here:

• Company-operated branches as of September 30, 2025: 612.
• Greenfield locations opened in the first nine months of 2025: 17.
• Fleet composition by OEC (9/30/2025): Aerial at 27%, Material Handling at 22%, Specialty Equipment at 17%, and Earthmoving at 13%.

Herc Holdings Inc. (HRI) - Canvas Business Model: Customer Relationships

You're looking at how Herc Holdings Inc. (HRI) structures its interactions with its diverse customer base as of late 2025, a year marked by the integration of H&E Equipment Services and a bifurcated market environment.

Dedicated National Account teams for large-scale customers are clearly a pillar of strength for Herc Holdings Inc. (HRI). The company explicitly noted that its national accounts business continues to benefit from robust project activity, which drove growth in the first quarter of 2025. This focus on major, often federally or privately funded, construction projects-like LNG facilities, data centers, and semiconductor plants-is a key relationship strategy. The CEO mentioned capturing an outsized share of these national account mega projects in 2024, which provided resilience against local market softness. This relationship strategy is supported by the sheer scale of the operation, with approximately 9,900 employees supporting customers across 612 company-operated branches in the United States and Canada as of September 30, 2025.

The service delivery model is dual-pronged, balancing national scale with local presence. While national accounts are a focus, the local service provided by branch personnel remains critical for the majority of the business volume.

Customer Segment	Revenue Mix (Q1 2025)	Performance Context (Q1 2025)	Target Long-Term Mix
Local Accounts	53%	Experienced weak demand due to higher federal interest rates	60%
National Accounts	47%	Growing, fueled by large construction projects	40%

The table above shows the revenue split as of March 31, 2025, illustrating that local accounts still represent the majority of the business, even as national accounts provide strong momentum. The company is targeting a shift toward a 60% local / 40% national mix over the long term.

Digital self-service and data access through ProControl™ represents the technological backbone connecting the sales force and the customer. Following the acquisition of H&E Equipment Services, Herc Holdings Inc. (HRI) achieved a major milestone by completing the full IT integration in the third quarter of 2025. This meant migrating all acquired branches onto Herc's network, which includes the customer-facing platform, ProControl by Herc Rentals™. This unified dashboard spans ERP, fleet management, pricing, CRM, logistics, and business intelligence. ProControl™ itself is described as using advanced technology to power a feature-rich website and mobile app, offering e-commerce solutions and robust account management tools, including telematics for fleet productivity and analytics.

For long-term, contractual relationships for major infrastructure work, the national account focus is the direct manifestation. The strength in this segment is tied to ongoing, multi-year projects. The company's total fleet value at original equipment cost (OEC) stood at $9,600 million as of September 30, 2025, indicating the substantial asset base available to service these large, often contractual, commitments. The success in securing this business is attributed to leveraging the strength of tenured customer relationships, which helped deliver record results in 2024.

• The company completed the sale of its Cinelease studio entertainment business on July 31, 2025, for initial cash consideration of $100 million.
• Net debt was $8.2 billion with a net leverage of 3.8x as of September 30, 2025.
• The company declared a quarterly dividend of $0.70 per share in Q3 2025.

Finance: review the Q4 2025 pipeline for national account contract renewals by January 15, 2026.

Herc Holdings Inc. (HRI) - Canvas Business Model: Channels

You're looking at how Herc Holdings Inc. gets its equipment and services into the hands of its customers across North America. It's a mix of boots-on-the-ground presence and modern digital tools, which is key given the scale they've achieved after the H&E Equipment Services acquisition.

The physical footprint is substantial. As of September 30, 2025, Herc Holdings Inc. operated 612 company-operated branches across the United States and Canada, a number that briefly reached 622 locations as of October 2025 following the integration of H&E. This physical network supports their rental and service offerings directly where the work is happening. To staff this, they employed approximately 9,900 people as of late 2025, though another report from October 2025 cited approximately 10,200 employees.

Direct engagement with major clients is handled by a dedicated direct sales force. This force targets two primary customer groups, which dictates a lot of their strategy. For instance, as of the first quarter of 2025, the revenue split showed that Local Accounts accounted for 53% of revenue, while National Accounts made up 47%. The company is actively working toward a long-term target mix of 60% local and 40% national revenue.

Digital channels are becoming increasingly integrated. The company completed a major IT integration in the third quarter of 2025, unifying operations onto their customer-facing platform, ProControl by Herc Rentals. This platform now serves as the single dashboard for key functions, including:

• Fleet management.
• Pricing execution.
• Customer Relationship Management (CRM).
• Logistics coordination.

When it comes to moving older assets, used equipment sales are a distinct channel, often utilized to rightsize the fleet after acquisitions. For the nine months ending September 30, 2025, sales of rental equipment added $147 million in revenue. However, this channel can pressure profitability; the margin on sales of rental equipment for the nine months of 2025 was 11%, down from 19% in the prior-year period. The use of the lower margin auction channel specifically contributed to this margin compression as they worked to rightsize the acquired fleet.

Here's a quick look at the key operational and financial metrics tied to these channels as of late 2025:

Channel Metric	Value/Data Point	Reference Period/Context
Company-Operated Branches	612 to 622	As of September 30, 2025, and October 2025
Total Employees	9,900 to 10,200	As of late 2025
Local Account Revenue Share	53%	Q1 2025
National Account Revenue Share	47%	Q1 2025
Used Equipment Sales Revenue	$147 million	Nine Months Ended September 30, 2025
Margin on Used Equipment Sales	11%	Nine Months Ended September 30, 2025

The focus on the National Account segment, driven by mega-projects, is a clear channel priority, even as the local account business faces headwinds from high interest rates. Finance: draft 13-week cash view by Friday.

Herc Holdings Inc. (HRI) - Canvas Business Model: Customer Segments

You're looking at how Herc Holdings Inc. (HRI) segments its customer base as of late 2025, which is crucial for understanding where the revenue actually comes from, especially after the big H&E Equipment Services acquisition.

Herc Holdings Inc. (HRI) explicitly structures its customer base to balance large, long-term national projects with consistent local demand. As of the second quarter of 2025, the company reported a balanced approach between local and national revenue streams, with 53% of revenue coming from local sources and 47% from national sources, though the long-term target is a 60% local / 40% national mix.

The most granular breakdown of revenue by end-market, based on Q2 2025 figures, shows the following distribution:

Customer Segment Category	Reported Revenue Percentage (Q2 2025)
Local and Regional Contractors	53% (as local revenue mix)
Industrial Clients	25%
Infrastructure and Government projects	17%
Commercial Facilities	14%
Other Sectors	7%

The prompt's outline aligns closely with the reported data, particularly for the major categories. For instance, the 53% figure for Local and Regional Contractors is supported by the reported local revenue stream percentage.

Here's a closer look at the key segments based on the structure you provided:

• Local and Regional Contractors: This segment still accounts for the majority of the total rental revenue, reported at 53% as of Q1 2025, though this area faced pressure in early 2025 due to the high-interest-rate environment.
• Industrial Clients: Representing 25% of revenue in Q2 2025, this segment benefits from robust industrial spending, with over $530 billion forecasted for 2025.
• Infrastructure and Government projects: This accounted for 17% of revenue in Q2 2025, benefiting from strong momentum in federal and privately funded mega projects.
• Large National Accounts: This group is the primary driver of the national revenue stream (47% of total revenue as of Q2 2025) and is supported by large-scale infrastructure and industrial projects.

The national account business showed robust momentum throughout 2024 and into 2025, driven by mega projects like LNG facilities, data centers, and semiconductor plants. The company is focused on scaling to support these national demands, with a reported approximately 40% year-over-year increase in branch locations by Q3 2025, adding density in key regions. If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Herc Holdings Inc. (HRI) - Canvas Business Model: Cost Structure

You're looking at the major drains on Herc Holdings Inc.'s cash flow and profitability as of late 2025, heavily influenced by the recent H&E Equipment Services acquisition.

High capital expenditures for fleet replacement is a primary cost driver. Herc Holdings Inc. is still executing on its fleet investment plan, reaffirming gross capital expenditures guidance for 2025.

The projected gross capital expenditures for the full year 2025 are between $900 million and $1.1 billion. This investment is necessary to grow and refresh the combined fleet.

The company's balance sheet reflects significant interest expense on $8.2 billion net debt as of September 30, 2025. This debt load was substantially increased to fund the H&E acquisition, which involved completing financing of $4.4 billion of new debt at a weighted average interest rate of 6.8% in Q2 2025.

Direct operating expenses (fleet maintenance, logistics, labor) have been elevated due to the acquisition integration phase. Operating expenses as a percent of equipment rental revenue were higher preceding the full impact of cost synergies and IT integration. This reflects acquisition-related redundancies and lower fixed cost absorption from moderation in certain local markets.

Depreciation of rental equipment is also a major cost component, increasing due to the larger fleet size post-acquisition. For the third quarter of 2025, depreciation of rental equipment increased 41% to $246 million. For the nine months ended September 30, 2025, non-rental depreciation and amortization increased 32% to $78 million, primarily due to amortization of intangible assets related to the H&E acquisition.

Here's a look at the Direct Operating Expenses for recent periods in 2025:

Period Ended	Direct Operating Expenses (Millions)	As % of Equipment Rental Revenue
September 30, 2025 (Nine Months)	$1,173 million	43.0%
September 30, 2025 (Third Quarter Only)	$467 million	41.6%
June 30, 2025 (First Half)	$706 million	43.9%
March 31, 2025 (First Quarter Only)	$327 million	44.2%

The company is actively managing these costs while pursuing the targeted savings from the merger. Herc Holdings Inc. expects to achieve 50% of its $125,000,000 EBITDA run rate cost synergy target by year-end 2025. The full cost synergy target is $125 million in EBITDA run rate.

These integration and restructuring costs are substantial and are being tracked alongside the synergy realization. For instance, the net loss in the second quarter of 2025 included $73 million of transaction costs primarily related to the H&E acquisition. The third quarter of 2025 included $38 million of transaction costs.

The cost structure is also impacted by selling, general and administrative expenses (SG&A), which for the third quarter of 2025 were $411 million, or 15.0% of equipment rental revenue. This included an increase related to stock-based compensation granted to certain H&E employees as part of merger agreements, partially offset by initial cost synergies.

• Gross fleet CapEx guidance for 2025: $900 million to $1.1 billion.
• Net debt as of September 30, 2025: $8.2 billion.
• Targeted full cost synergies: $125,000,000 EBITDA run rate.
• Targeted synergy achievement by year-end 2025: 50% of the cost synergy target.
• Q2 2025 transaction costs: $73 million.
• Q3 2025 transaction costs: $38 million.

Finance: review the Q4 2025 projected interest expense against the $8.2 billion debt load by next week.

Herc Holdings Inc. (HRI) - Canvas Business Model: Revenue Streams

You're looking at how Herc Holdings Inc. actually brings in the money, which is key to understanding its valuation, especially given the recent acquisition integration. The business model is heavily weighted toward the core rental activity, but the other streams provide important cash flow and fleet management benefits.

Core Equipment Rental Revenue is the engine here. For fiscal year 2025, Herc Holdings Inc. is projecting equipment rental revenue to land in the range of \$3.7 billion to \$3.9 billion, not including the Cinelease studio entertainment and lighting and grip equipment rental business. To give you a sense of the recent run rate, the total revenue for the trailing twelve months (TTM) as of late 2025 was reported at \$3.87 Billion USD. Looking at the third quarter of 2025 specifically, equipment rental revenue hit \$1,122 million, which was a 30% increase year-over-year for that period.

The composition of revenue streams is dynamic, especially following major integration efforts. Here's a look at some key components based on the nine months ended September 30, 2025, compared to the prior year:

Revenue Component (9M Ended Sept 30)	2025 Amount (in millions)	2024 Amount (in millions)
Equipment Rental Revenue	(Not explicitly broken out for 9M 2025 in this context)	(Implied from Total Revenue/Sales data)
Total Revenues	\$3,167	\$2,617
Sales of Rental Equipment (Increase)	\$147	(Implied from Total Revenue change)
Proceeds from Disposal of Rental Equipment	(\$306)	(\$198)

Sales of used rental equipment (fleet rotation) is a crucial, though sometimes lower-margin, component. It helps manage fleet age and capital deployment. For the nine months ended September 30, 2025, the proceeds from the disposal of rental equipment totaled \$306 million. This compares to \$198 million in proceeds from disposal in the same nine-month period of 2024. Honestly, this activity is often tied to fleet optimization; for instance, the margin on sales of rental equipment was 18% for the nine months ended September 30, 2025, down from 27% in the prior-year period, partly due to selling acquired fleet inventory through lower-margin channels to rightsize the combined fleet.

Re-rent revenue and specialized ProSolutions® fees represent the higher-value, often stickier, parts of the service offering. While specific dollar amounts for re-rent revenue aren't cleanly separated in the latest guidance, the focus on specialty solutions is clear. Herc Holdings Inc. highlighted strength in its specialty products and solutions business, which helps buffer against moderation in interest-rate sensitive commercial sectors. The company's technology platform, ProControl by Herc RentalsTM, supports the delivery of these specialized services.

Finally, you have the various ancillary fees that layer on top of the base rental rate. These are the necessary add-ons that ensure operational coverage and cost recovery. You should expect to see revenue generated from:

• Delivery charges for moving equipment to and from job sites.
• Damage waiver fees, which transfer some risk to the customer.
• Fuel surcharges, adjusting for volatile energy costs.

These fees, while smaller individually, contribute to the overall margin profile of the rental transaction. Finance: draft 13-week cash view by Friday.