H&E Equipment Services (HEES) Q4 2024 earnings summary

Executive summary

• Revenues for Q4 2024 decreased 0.4% year-over-year to $384.1 million; full-year revenues rose 3.2% to $1.52 billion.

• Net income for Q4 was $32.8 million, down from $53.5 million; full-year net income was $123.0 million, down from $169.3 million.

• Adjusted EBITDA for Q4 fell 5.6% to $174.9 million; full-year Adjusted EBITDA was $685.2 million, down 0.4%.

• Announced agreement to be acquired by Herc Holdings Inc., combining two major industry players.

Financial highlights

• Q4 equipment rental revenues increased 0.8% to $319.4 million; rental revenues up 0.9% to $283.0 million.

• Sales of rental equipment in Q4 dropped 30.1% to $28.4 million; new equipment sales more than doubled to $20.5 million.

• Q4 gross margin declined to 43.6% from 48.3%; rental gross margin was 50.9% versus 54.2% a year ago.

• Full-year rental revenues rose 5.4% to $1.11 billion; new equipment sales up 42.2% to $55.6 million.

• Full-year gross margin declined to 44.5% from 46.6%; rental margin was 50.4% versus 52.1%.

Outlook and guidance

• Forward-looking statements cite economic, geopolitical, and industry risks, including inflation, interest rates, supply chain, and merger-related uncertainties.