Herc says it will ‘outpace’ rental growth in 2023

US rental company Herc Rentals said its net capital investment in fleet this year will be between US$1 billion and $1.2 billion, maintaining the high spending of last year on the back of a record year of growth.

Larry Silber, the company’s President and CEO, said he expected Herc to “continue to outpace industry expansion” in 2023.

For the full year the company posted a 37.2% increase in EBITDA profit to $1.23 billion on revenues that were 33.6% up at $2.55 billion. Herc’s fourth quarter maintained the +30% growth for revenue and reached a 40.8% increase in EBITDA.

Dollar utilisation in the year increased to a record 43.3% compared to 43.0% in 2021, as a result of increased volume and rental rates.

Silber said; “From beginning to end, 2022 was an exceptionally strong year for us, with record performance across key financial metrics.

“Operating momentum and market share growth continued in every region driven by robust demand, improved pricing, strategic fleet investments, end market diversity, and greater branch-network efficiencies.”

Herc Rentals equipment.

He added that the business was well placed to take advantage of “trends relating to the multi-year fiscal stimulus and re-shoring mega projects.”

During 2022 Herc acquired 18 companies with a total of 29 locations and opened 21 greenfield locations.

“We expect to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2023 by investing in our fleet, capitalising on strategic acquisitions and greenfield opportunities, and cross-selling our diversified product portfolio”, said Silber.