What drove HRI's earnings growth in 2024?

Herc Holdings Inc. (HRI) experienced a notable increase in net income and revenue in 2024, driven by several key factors: 1. **Revenue Growth from Mega Projects and Network Expansion**: Herc Holdings' equipment rental revenue reached a record $866 million in Q3 2024, marking a 13% year-over-year increase. This growth was primarily driven by robust contributions from mega projects and network expansion efforts. The company's focus on large-scale projects and strategic expansions has been instrumental in boosting its revenue. 2. **Strategic Acquisitions**: Herc Holdings has been actively pursuing strategic acquisitions to enhance its market position and expand its service offerings. For instance, the company's fleet investment resulted in a total fleet value of $6 billion as of the end of Q3 2024. These acquisitions not only increase the company's revenue but also strengthen its market presence. 3. **Increase in Rental Rates**: The company has seen a positive trend in rental rates, with a year-over-year increase of 2.3% in Q3 2024 and 3.5% year-to-date. This rise in rental rates contributes significantly to the company's earnings growth. 4. **Effective Liquidity Management**: Herc Holdings' liquidity position, supported by cash and cash equivalents and unused commitments under the ABL Credit Facility, has been crucial in maintaining financial flexibility. This ability to manage liquidity effectively has allowed the company to capitalize on growth opportunities without compromising its financial health. 5. **Dividend Payments**: The company's dividend payments, with a quarterly dividend of $0.665 per share, reflect its commitment to returning value to shareholders. While not directly driving revenue growth, dividends can influence investor sentiment and contribute to the company's overall financial performance. In summary, Herc Holdings' earnings growth in 2024 was driven by a combination of revenue growth from mega projects and network expansion, strategic acquisitions, increase in rental rates, effective liquidity management, and dividend payments. These factors collectively contributed to the company's robust financial performance.